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Strengthening Our Communities: The Hamburger Tax

In 2018, Arkansas’ three biggest cities collected a combined $18.7 million in taxes on food orders and hotel stays.

This tax is often called the “hamburger” tax because of its relationship with eating out. In many cities, the tax is also applied to hotel stays.

The Advertising and Promotion Commission Tax, as it is officially known, is levied in addition to what people pay in regular city, county and state sales taxes. But this tax money doesn’t go to fund police, fire and other regular city expenses.

City councils have approved charging this tax to improve area attractions. Some cities use the money to pay for park maintenance. Others use it to lure big conferences, which in turn can generate more sales tax revenue for city budgets.

Unlike regular sales tax, residents don’t vote on whether to levy a hamburger tax. State law allows city councils to vote and pass an ordinance creating this commission and its associated tax.

The commissions are then in charge of collecting and spending the revenue how they see fit. The decisions made and money spent are still public record, and the Advertising and Promotion Commission meetings are public meetings.

This is one way residents can have a voice in what happens with this funding.

Kristin Higgins loves to talk about policy and the issues you might find on an Arkansas ballot. Higgins joined the Public Policy Center at the University of Arkansas System Division of Agriculture in 2012 after a decade working as a newspaper reporter covering city hall, county government and crime in Arkansas. That journalism background still influences Higgins philosophy on writing for the public. She likes to translate difficult policy into easier and more understandable terms for the general public. In her time at the Cooperative Extension Service, Higgins has helped transform one of the few Extension ballot issue education programs in the country to reach more people. The Public Policy Center provides Arkansans with neutral information about proposed constitutional amendments and state laws to help them make informed decisions on Election Day. Higgins has a Masters in Agricultural Education and Extension from the University of Arkansas and is president of Arkansas Press Women, a 70-year-old organization supporting professional communicators. Reach out to Kristin at khiggins@uaex.edu or call 501-671-2160.