Arkansas Code Title 14. Local Government § 14-20-112. County gross receipts tax on hotels and restaurants

(a)(1)(A)(i) Any county in which there is located a municipality that levies a gross receipts tax on hotels, motels, restaurants, or similar establishments as authorized in the Advertising and Promotion Commission Act, § 26-75-601 et seq., may levy by ordinance of the county quorum court a like tax at the same rate as the levying municipality or at a lesser rate upon the gross receipts from furnishing of hotel or motel accommodations and upon the gross receipts of restaurants or similar establishments located within the county outside the boundaries of the levying municipality.

(ii) The tax levied under this subdivision (a)(1)(A) shall apply to hotels, motels, restaurants, or similar establishments located within unincorporated areas of the county.

(2)(A)(i) The quorum court levying such tax and the governing body of the municipality levying a like tax may enter into an agreement whereby the tax levied by the county will be collected by the municipality.

(ii) If the tax levied by the county is collected by the municipality, all revenues derived from the tax shall be deposited into the municipality's advertising and promotion fund.