WM A&P tax revenues rebound

WM A&P tax revenues rebound

Collections up after slow start to 2017

news@theeveningtimes.com

The West Memphis tourism tax was up in the month of February reflecting a seesaw start to 2017. The city collects a 2-percent tax from hotel guests and diners visiting the Gateway City. The January Advertising and Promotion tax (A& P) was down $19,615 the same month a year ago but the second month was up $5,639. The ‘hamburger tax’ revenue this February was $106,890 against 101,251 in 2016.

While February popped up, numbers remained down for the year. The shortfall amounted to $13,976 for a negative 5.87 percent. Performance against budgeted expectations showed a

City Treasurer Frank Martin A&P

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bigger negative gap, off $19,394.

City Treasurer Frank Martin rolled out the news to city Councilors on the Budget Committee.

“For the year the A& P are $14,000 below for the two months,” said Martin. “But I had budgeted them for an Increase so they are $19,000 behind budget.”

First term Councilman Wayne Croom asked Martin for the history and the basis for the A& P tax.

“It started in 1984,” said Martin who brings annual results to every meeting. “It started off as a one percent tax and later doubled to two percent.”

The tables is still entitled the “1% and/or 2% Tourism Tax” to reflect the full history. Martin held up the chart and pointed to the big revenue jump to mark the point where the A& P tax jumped as the point where the tax increased.

“You can see by the revenue numbers it doubled in 2004,” said Martin.

That year A& P revenue amounted to $1,092,356. This year the budgeted goal was set at $1,460,000.

Martin provided an overall city retail sales tax breakdown to put the A& P tax in perspective.

“Our sales tax is 10.75, then add the two percent A& P hamburger tax on top of that,” said Martin. “Marion’s sales tax is 11 percent.” The county has a one percent sales tax for hospital development that sunsets after 5 years.

“West Memphis is a very cost effective place to live,” said Budget Chairman Tracy Catt.

“You’ve got the cheapest utility rates in the state,” said Martin. “You have the cheapest water rates in the south. School millage is cheaper by a bunch than elsewhere in the state. 99 percent of (city) income is based on sales tax.”

By John Rech