Arkansas Advertising and Promotion (Hamburger) Tax by City: Restaurant and Hotel Rates, Free A&P Permits and the Act 190 Voter Rule
Arkansas Advertising and Promotion (Hamburger) Tax by City: Restaurant and Hotel Rates, Free A&P Permits and the Act 190 Voter Rule
If you sell prepared food or rent lodging in Arkansas, you may owe a local tax that most people call the arkansas hamburger tax. Its official name is the advertising and promotion tax, or A&P tax. Cities levy it, not the state, so the rate depends on where your business sits. Two neighboring cities can charge very different amounts on the same cheeseburger or the same hotel night.
This guide covers how the tax works, which cities charge it and at what rates, when you need a free A&P permit, and how the Act 190 voter rule affects any city that wants to add or raise the tax.
What the Arkansas hamburger tax is
Arkansas Code Annotated 26-75-601 et seq. allows cities to levy an advertising and promotion tax on prepared food, which is the hamburger part, and on hotel and motel lodging. The city pays the revenue to a local A&P Commission. The commission uses it to promote tourism and local attractions.
Two points trip up new operators:
- The tax is paid to the city's A&P Commission, not to the Arkansas Department of Finance and Administration (DFA). DFA handles the state sales tax and withholding, but it does not collect the A&P tax.
- Each city sets its own rate, taxable base and filing schedule. There is no statewide rate to look up.
Because the tax is local, the first question for any restaurant or lodging operator is simple: does my city levy an A&P tax at all? Start with the city website or the A&P Commission, then confirm the rate and taxable categories in writing before you set prices.
How the tax shows up at the register and on the books
In practice, the A&P tax is added to the customer's bill, collected from the guest or diner, and then remitted to the city on a set schedule. Restaurants collect it on prepared food and beverages. Hotels and short-term rentals collect it on the lodging charge. Your point-of-sale system and bookkeeping need to track the tax by city, because a location in one city may carry a different rate, exemption or filing date than a second location a few miles away.
Keep the A&P tax separate from the state sales tax in your records. The state sales and use tax is administered by DFA, while the A&P tax goes to the city. Mixing the two is one of the most common reasons operators file late or pay the wrong agency.
Act 190 of 2023: why new or higher rates need a vote
Act 190 of 2023 requires voter approval for any new or higher A&P tax. A city cannot add the tax, or raise an existing rate, without the change going to voters. According to a March 2023 report from the University of Arkansas System Division of Agriculture (UAEX), at least 44 Arkansas communities charge an A&P tax. Treat that figure as a minimum, since the list changes as elections take place.
For you, this means the rate you see on a city's website today is the rate in force until voters approve something different. Bryant is a useful example. In 2023 the city considered a 3% lodging tax and a 1% hot food tax. Because Act 190 requires an election, confirm with Bryant whether either change was approved and is in effect before you set your prices or sign leases.
Current rates by city
The figures below come from the sources noted in each row. Rates change, so treat this table as a starting point and confirm each figure with the city before you file.
| City | Prepared food | Lodging | Notes |
|---|---|---|---|
| Little Rock | 2% on prepared food and beverages, not mixed drinks | 4%, including short-term rentals such as Airbnb | Per the city tax sheet |
| North Little Rock | 3% on foodservice | 3.5% | Lodging stays of 30 days or more are exempt. A free A&P permit is required before the city business license. A 2% discount applies if remitted by the 20th. A 5% monthly late fee applies. |
| Fayetteville | 2% HMR tax | 2% HMR tax on hotels and motels | Split 1% to the A&P Commission and 1% to parks (Experience Fayetteville, 2026) |
| Bella Vista | 1% | 2% | Per the city website |
| Conway | Check with the city | Check with the city | Free A&P permit required for restaurants and short-term rentals |
| Bryant | Check with the city | Check with the city | Considered 1% on hot food and 3% on lodging in 2023. Confirm whether any change was approved under Act 190. |
| Hot Springs, Bentonville, Springdale, Eureka Springs and other cities | Check with the city or its A&P commission | Check with the city or its A&P commission | Rates for these cities are not confirmed in this guide and change over time |
If your city is not in this table, that does not mean it charges nothing. Search the city website for A&P, hospitality or hamburger tax, then contact the clerk or the A&P Commission directly.
Free A&P permits: when you need one
An A&P permit is different from a business license. Some cities require it, some do not, and the order in which you apply can matter. In the cities covered here:
- North Little Rock requires a free A&P permit before you can obtain its city business license.
- Conway requires a free A&P permit for restaurants and short-term rentals.
Apply for the A&P permit through the city, not through DFA or the Secretary of State. Ask whether the permit needs renewal, whether it must be displayed on the premises, and whether a change of ownership requires a new one.
City business licenses are separate
Arkansas has no general statewide business license, and counties issue no general business license. Local licensing happens at the city level, and the approaches vary widely:
- Little Rock and North Little Rock charge a business license based on a base amount plus the number of employees.
- Bentonville runs a free business registry.
- Conway does not impose a city business license.
Other registrations depend on the activity, not on the city:
- DFA, through the Arkansas Taxpayer Access Point (ATAP), handles sales and use tax and withholding registration. The sales and use tax permit costs $50. Apply at the DFA sales and use tax registration page. The state general sales tax rate is 6.5%.
- The Division of Reemployment handles unemployment insurance registration for employers.
- The Secretary of State handles entity filings and the annual franchise tax report. An LLC files a Certificate of Organization (Form LL-01), with a $45 online filing fee ($50 on paper), and pays a $150 annual franchise tax due May 1.
- The county clerk records assumed names for sole proprietors. Corporations and LLCs file trade names with the Secretary of State instead.
A step-by-step checklist
- Confirm whether your city levies an A&P tax and which categories it covers. Ask specifically whether mixed drinks, short-term rentals or stays of 30 days or more are included.
- If your city requires an A&P permit, apply for it. In North Little Rock, the A&P permit comes before the city business license.
- Register for the state sales and use tax permit through ATAP. The $50 permit is separate from the A&P tax and does not replace it.
- Set up your point-of-sale or booking system to apply the correct rate and exemptions by location. In Little Rock, exclude mixed drinks from the 2% prepared food tax. In North Little Rock, exempt lodging stays of 30 days or more from the lodging tax.
- Remit on the city's schedule. In North Little Rock, remitting by the 20th earns a 2% discount, and a late payment carries a 5% monthly late fee.
- Keep records by city showing gross receipts, exempt sales, tax collected and the date each payment was made.
Short-term rentals and Airbnb
Short-term rentals are where most surprises happen. Little Rock applies its 4% lodging rate to short-term rentals, including Airbnb. Conway requires a free A&P permit for short-term rentals. North Little Rock exempts stays of 30 days or more from its lodging tax, so a monthly rental may fall outside the tax while a weekend booking does not.
If you list a home on a booking platform, confirm with the city whether the platform collects the A&P tax on your behalf or whether you must file and remit it yourself. Do not assume the answer is the same in every city.
Questions to ask the city before you open
- Is an A&P tax in effect, and was it approved by voters under Act 190?
- Which sales are taxable: food, non-alcoholic beverages, alcohol, mixed drinks, lodging or short-term rentals?
- Is an A&P permit required, and does it come before the business license?
- When are returns due, and what discounts or penalties apply?
- Does the A&P Commission publish a written rate schedule I can rely on?
Where to verify
- Arkansas Secretary of State, Business and Commercial Services Division: https://www.sos.arkansas.gov/business-commercial-services-bcs/
- Business entity search: https://www.sos.arkansas.gov/corps/search_all.php
- Arkansas Department of Finance and Administration: https://www.dfa.arkansas.gov/
- Arkansas Small Business and Technology Development Center, for free or low-cost advising: https://asbtdc.org/
- Your city clerk and the city's A&P Commission, for current rates and permit forms
This guide is informational only. It is not legal, tax or accounting advice. Rates, exemptions and filing rules can change, and the figures above may not reflect the most recent city action. Confirm current requirements with the city, its A&P Commission or the agency named above before you file or set prices. For complex situations, such as multiple locations, lodging operations or a proposed Act 190 election, consult a qualified Arkansas attorney or CPA.