CATPC

About

CATPC - City Advertising & Tourism Promotion Commission

The Advertising & Promotion tax (referred to as the ‘hospitality’ tax ), was established by Harrison City Ordinance No. 755, 845, 874, 987, & 1243 and levied a 3 percent (3%) tax on the portion of the gross receipts or gross proceeds received from the renting, leasing or otherwise furnishing of hotel, motel, or short-term condominium rental accommodations for sleeping, meeting, or party room facilities for profit in the City of Harrison, Arkansas, but such accommodations shall not include the rental or lease of such accommodations for periods of thirty (30) days or more.

A 1 percent (1%) tax on prepared food and non-alcoholic beverages (referred to as the "Hamburger" tax) sold by restaurants, cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, convenience stores, grocery stores delis, festivals, and all other establishments in Harrison engaged in the selling of prepared food and beverages for on or off premises consumption.

Prepared food is food items sold that are altered by quantity or content:

any food item that is cooked on the premises by the establishment for sale to a customer:

a fountain drink would be subject to the tax, whereby a can of soft drink would not:

meat or cheese sliced by the establishment for customer sale would be taxed, whereas, prepackaged meat or cheese sold to customers as purchased by the establishment from a vendor would not be taxed:

A pre-packaged bag of nacho chips/potato chips would not be taxed, however, an on-premises prepared serving of nachos (cheese and nacho chips) would be, etc.

Although this is a city tax, state laws govern the makeup of the Commission and set forth guidelines for any expenditure of the funds collected. Payment of the tax is made directly to our office, and any expenditure must be approved by the Commission.