§ 13-47. Gross receipts tax.

(a)

A tax in the sum of three (3) percent shall be levied in the city (1) upon the gross receipts or gross proceeds from the renting, leasing, or otherwise furnishing hotel, motel, or short term condominium rental accommodations for sleeping, meeting, or party room facilities for profit, but such accommodations shall not include the rental or lease of such accommodations for periods of thirty (30) days or more; and (2) a tax in the sum of two (2) percent shall be levied in the city upon the portion of the gross receipts or gross proceeds received by restaurants, cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, concession stands, convenience stores, grocery store-restaurants, and similar businesses, from the sale of prepared food and beverages for on or off-premises consumption, but such tax shall not apply to such gross receipts or gross proceeds of organizations qualified under section 501(c)(3) of the Federal Internal Revenue Code.

(b)

(1)

The tax so levied shall be paid by the persons, firms, and corporations liable therefor and shall be collected by the Pine bluff Advertising and Promotion Commission or by its designated agent in the same manner and at the same time as the tax levied by the Arkansas Gross Receipts Act of 1941, A.C.A. Section 26-52-101 et seq.

(2)

The person paying the tax shall report and remit it upon forms provided by the commission, and as directed by the commission. The rules, regulations, forms of notice, assessment procedures, and the enforcement and collection of the tax under the Arkansas Gross Receipts Act of 1941, A.C.A. Section 26-52-101 et seq., and the Arkansas Tax Procedure Act, A.C.A. Section 26-18-101 et seq., shall, so far as practicable, be applicable with respect to the enforcement and collection of the tax levied herein. However, the administration and enforcement, and all actions, shall be by, and in the name of, the commission through the proper commission officials or agents. The commission shall have the authority to sue and be sued in its name.

(c)

(1)

In the administration of this section, the commission, through its officials or agents, for the purpose of determining the accuracy of a submission or fixing any liability, may make an examination or investigation of the place of business, the tangible personal property, equipment, and facilities, and the books, records, papers, vouchers, accounts, and documents of any taxpayer or other person. Every taxpayer or other person and his agents and employees shall exhibit to the commission, its officials or agents, these places and items and facilitate any examination or investigation. No taxpayer shall be subjected to unnecessary examination or investigation, and only one (1) inspection of a taxpayer's books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless the commission, after investigation, notifies the taxpayer in writing that an addition inspection is necessary.

(2)

The commission may compel the production of such records and materials by summons. A summons may be served by any commission official or agent.

(3)

In the administration of this section, the commission may conduct hearings, compel by summons the attendance of witnesses, testimony, and the production of books, records, papers, or other data of any person or taxpayer, administer oaths, and examine under oath any person regarding the business of any taxpayer concerning any matter incident to the administration of this section. The investigation may extend to any person the commission determines has access to information which may be relevant to the examination or investigation.

(4)

When any summons requiring the production of records as described in subdivision 1 is served on a third-party record keeper, written notice of the summons shall be mailed to the taxpayer that his records are being summoned, at least fourteen (14) days prior to the date fixed in the summons as the day for the examination of the records. Notice to the taxpayer is sufficient if it is mailed by certified mail to the last address on record with the commission.

(5)

When the commission conducts a hearing pursuant to subdivision 3 above, it shall honor any reasonable request by any taxpayer to issue a summons on the taxpayer's behalf. In such case the taxpayer shall bear the cost of producing the records the taxpayer requests be summoned.

(6)

The commission may apply to the circuit court with jurisdiction for an order compelling the production of the summoned records and failure to comply with an order for production may be punished as contempt of court.

(7)

The refusal to permit the commission, its officials or agents, to examine books, records, and other documents pursuant to subsection (1) or as summoned in subsection (2), shall be unlawful and a misdemeanor.

(d)

A taxpayer who fails to timely report or pay the tax due under this section shall pay a penalty equal to five (5) percent of the unpaid tax amount per month, not to exceed a total assessment of thirty-five (35) percent of the unpaid tax. Simple interest on unpaid taxes shall be assessed at the rate of ten (10) percent per annum.

(e)

The commission may assess unpaid or unreported tax within three (3) years of the date the tax is due.

(f)

The commission may issue certificates of indebtedness certifying that the person or business named therein is indebted to the commission for the amount established by the commission as due.

(g)

(1)

Within thirty (30) days of notice to the taxpayer that the taxpayer owes unpaid tax and/or penalties and interest, or in any case the taxpayer claims an overpayment of tax and/or penalties and interest, taxpayer may request review by the commission. At the option of the taxpayer, the review may be limited to a review of documents and records submitted by the taxpayer, or may include a hearing. The review of documents and records and any hearing will be conducted by a hearing officer designated by the commission.

(2)

The hearing officer will set the time and place of the hearing and provide the taxpayer with reasonable notice thereof. At the hearing the taxpayer may be represented by an authorized representative and may present evidence in support of his position. A record shall be made of the hearing and preserved. After the hearing the hearing officer will render a written decision and provide copies to the taxpayer and the commission. The taxpayer dissatisfied with the hearing officer's decision shall have ten (10) days to request in writing that the commission review the decision. If the commission declines to revise the hearing officer's decision or the taxpayer does not seek commission review, the taxpayer may seek judicial review of the decision.

(3)

Within thirty (30) days of the issuance of notice and demand for payment of a deficiency in tax established by a final determination of the hearing officer or commission, the taxpayer may seek judicial relief from the final determination by either:

(A)

Paying under protest the amount of the deficiency, plus penalty and interest determined to be due, and filing a suit to recover that amount within one (1) year from the date of payment under protest; or

(B)

(i)

Filing with the commission a bond in double the amount of the tax deficiency due and filing suit within thirty (30) days thereafter to stay the effect of the commission's determination.

(ii)

The bond shall be subject to the condition that the taxpayer shall file suit within thirty (30) days after filing the bond, shall faithfully and diligently prosecute the suit to a final determination, and shall pay any deficiency found by the court to be due and any court costs assessed against him.

(iii)

A taxpayer's failure to file suit, diligently prosecute the suit, or pay any tax deficiency and court costs, as required by this subsection, shall result in the forfeiture of the bond in the amount of the assessment and assessed court costs.

(C)

The method provided in this section is the exclusive method for seeking relief from a written decision of the commission establishing a deficiency in tax.

(h)

(1)

If a taxpayer does not timely and properly pursue his remedies seeking relief from a decision of the commission and a final assessment is made against the taxpayer, or if the taxpayer fails to pay the deficiency assessed upon notice and demand, then the commission shall, as soon as practicable thereafter, issue to the circuit clerk of the county in which the taxpayer's business is located, a certificate of indebtedness certifying that the person named therein is indebted to the commission for the amount of the tax established by the commission as due.

(2)

The circuit clerk shall record the certificate of indebtedness upon the circuit court judgment docket as provided in A.C.A. Section 26-75-603(e)(2). The entry of the certificate of indebtedness shall have the same force and effect as the entry of a judgment rendered by the circuit court. This entry shall constitute the commission's lien upon the title of any real and personal property of the taxpayer in the county where the certificate of indebtedness is recorded.

(3)

The certificate of indebtedness authorized by this subsection shall continue in force for ten (10) years from the date of recording and shall automatically expire after the ten-year period has run. Actions on the lien arising from the certificate of indebtedness shall be commenced within ten (10) years after the date of recording of the certificate, and not afterward.

(4)

The commission shall have all remedies and may take all proceedings for the collection of the tax which may be taken for the recovery of a judgment at law.

(Code 1967, § 2-208; Ord. No. 5550, § 1, 7-19-93; Ord. No. 6001, § 2, 5-6-02; Ord. No. 6117, §§ 1, 2, 11-15-04; Ord. No. 6117, §§ 1, 2, 11-15-04)

State law reference

Authority to levy above tax, A.C.A. § 26-75-602; collection of tax, A.C.A. § 26-75-603.