Written by Marty Spears
You might have noticed the signs that have gone up around town in the last few weeks asking for a vote for or against the A&P Tax. Unless you read the local paper or listen to gossip at a local doughnut shop, you probably are completely unaware of the upcoming special election in Searcy. On April 13, Searcy voters will be given the chance to vote on the A&P Tax. Anyone who is registered to vote in the city of Searcy can vote in this special election. This includes year-round Searcy residents as well as college students who are registered in Searcy. It is important for each person who votes to be informed and weigh the costs and benefits of the A&P Tax before voting.
I was born in Searcy and lived in Searcy from junior high through college. I moved away upon graduating from Harding in 1988, but moved back to Searcy in 2000 to raise my family. I served six years on the board of Searcy Youth Soccer, and I now have served for several years on the Parks and Recreation Advisory Board. I say all of this just so you will understand the diversity of my perspective. I have experienced Searcy as a child, college student and now father. I have been active in community service for the last 10 years, trying to help maintain and improve the high quality of life we enjoy in Searcy. I know Searcy past and present, and I understand that as nice as things are, there are many needs that have to be addressed as we move into the future.
It seems to me that a good way to present you with information on the A&P is with a Q&A, so here are some questions that people have asked along with answers.
What is the A&P Tax? Many years ago, the state legislature set up the Advertising & Promotion (A&P) Tax for cities to use to generate revenue to help advertise and promote a city, and to maintain and improve parks and recreation in their city. The revenue is locally controlled and by law must be spent for the designated uses, which are all intended to promote and improve facilities in the city, and to help draw more events and visitors to the city. The tax applies to money spent on hotel room rentals and food service products. Some have called it a “food tax,” but that is deceptive because the tax does not apply to groceries, just eating out. People who do not stay in a hotel and do not eat out will not pay any A&P Tax.
Do other cities in Arkansas have an A&P Tax? Benton, Bentonville, Blytheville, Brinkley, Cabot, Camden, Clarksville, Conway, Dumas, El Dorado, Eureka Springs, Fairfield Bay, Fayetteville, Forrest City, Fort Smith, Hardy, Harrison, Heber Springs, Helena, Hot Springs, Hope, Jacksonville, Jonesboro, Little Rock, Mena, N. Little Rock, Ozark, Pine Bluff, Rogers, Russellville, Sherwood, Springdale, Texarkana, Van Buren, West Memphis all have an A&P tax.
Searcy is one of the largest cities in Arkansas without one. You already pay an A&P tax every time you eat out in Little Rock or any of these cities. Consider how much A&P tax Searcy residents pay in these cities, but the visitors to Searcy do not pay an A&P tax. It is important to note that well over half of the revenue from this tax in many cities comes from visitors, not the residents.
Who controls how A&P money is spent? The city council appoints an A&P Commission with seven members: two from city council, four from the local restaurant and hotel industry, and one at-large member). The commission decides how the money will be spent, but by law the money must be spent to advertise and promote Searcy and maintain and improve parks and recreation. The A&P Commission meets regularly to consider requests for funding. Some have said that the A&P commission does not have to answer to the people, but that is not true. The city council is elected and can at any point vote to remove any or all members of the commission. These “checks and balances” between the city and the commission work well in cities across the state. The commission is carefully selected by the city council and can be replaced if there are any problems. The A&P commission will have regular audits, and the report will be public information.
Who can use A&P money? Obviously, the city can use A&P money to maintain and improve the parks and recreation facilities, to restore public spaces, to bring events to the city and to promote and advertise the city. In Searcy, the target is for 70 percent of the revenue to be used to support parks and recreation. However, anyone can apply for A&P money if they have a need that meets the legal requirements for A&P money. For example, if a non-profit organization in Searcy wanted to host a 10K run, they can apply for A&P money to advertise and promote. If a youth sports organization wants to add lights to a new field, they can apply for A&P money to make improvements. If a church wanted to host a Christian concert at Spring Park, they can apply for A&P money to advertise and promote. If the Harding Ultimate Frisbee Team wants to host a tournament, they can apply for A&P money to pay for advertising. The A&P money is a local tax that can be used by the citizens to help make Searcy a better place to live.
Why is money needed for parks and recreation? The Searcy Parks and Recreation Advisory Board has worked for years with the city to do a better job of maintaining our parks and recreation facilities, and at the same time to plan for growth and make improvements for the future. We are blessed with a relatively good park system for a small city in Arkansas, mainly because wise leaders in the past planned for and spent money to develop the parks.
However, the city of Searcy has more than doubled in size over the last 30 years, and we are at a critical point when we need to once again make wise decisions and plan for the future. Some have claimed that our taxes have paid for the facilities, but in reality, most of the improvements to the parks facilities in the last 30 years have been funded by generous donations of local citizens and grants obtained by the parks and recreation department. Our current tax revenue does not adequately support the current parks and recreation needs, much less provide money to make improvements and plan for the future.
What improvements will we see funded by the A&P tax? There are many current needs for future improvements in Searcy that can be funded by the A&P tax. These include: land acquisition for new parks to keep pace as the city expands, new sports fields at the sports complex for public use, extension of the bike trail around the city, new pavilions and equipment at parks, improvements to the Searcy Art Gallery, renovations to the Senior Citizen Center, a new public swimming pool, funding for the Arts council and Historical Society, etc. The list is long, but the A&P tax would provide as much as $1,000,000 per year that is currently not available to meet those needs.
It is important to note that cities see a jump in sales tax revenue as a result of the A&P tax when additional city events draw visitors who shop at retail stores in Searcy.
How much will the A&P cost me? The A&P Tax in Searcy would be 3 percent on hotel rooms and 1 percent on food. The impact on most residents in Searcy would be small. Most residents do not use hotels, so the only new tax would be on eating out. If you buy a $5 combo meal, the tax is 5 cents. If you spend $100 per month eating out, the tax is $1. If a family spends $400 per month eating out, the tax is only $4. The cost is very low, so the significant benefits to the community come at a very low cost to the residents of Searcy. Even if you or your family do stay in a hotel in Searcy from time-to-time, a 3 percent hotel tax is very low. If you have traveled much at all, then you know that hotel taxes across the country range from 10 to 15 percent.
My initial response to a new tax is negative, but in the case of the A&P Tax, I see a local tax that produces money that is locally controlled and spent to make Searcy a better place to live. The cost to the typical family or student in Searcy will be very small, and the income generated and potential to make a huge impact on the quality of life and opportunities for recreation in Searcy is great. If you can afford to spend $100 per month eating out, then you can afford a $1 tax, especially considering that your $1 tax will be spent in Searcy to maintain and improve the quality of life.
If you are registered to vote in Searcy, please go vote in favor of the A&P Tax on April 13. You can make a difference for the future of the city of Searcy.
