Rogers Changing Collection Procedure

City Will Stop Sending Monthly Forms For Hotel Taxes, Private Club Fees

— City officials are changing the way hotel/motel taxes and the alcohol franchise fees are collected, and will save some money by making the change.

The city clerk’s office, beginning in January, will stop sending monthly report forms to hotels, motels and private clubs for the collection of taxes and fees.

At A Glance

Tax And Fees

The city collects a 2 percent hotel/motel tax on rooms and a 5 percent fee on alcohol sales in private clubs.

The hotel/motel tax has generated $618,000 for the Advertising and Promotion Commission through November.

The alcohol fees, which go to the city, stood at $548,000 through November.

The city also collects an annual private club permit fee of $250. This year the city collected $14,000.

There are 57 private clubs in Rogers, although more are expected in 2013.

Source: Staff Report

“This came about when we were preparing the budget,” said Peggy David, city clerk.

Postage was over budget this year in part because of the number of reports mailed each month, David said.

The city’s postage budget for 2012 is $50,000, said Richard McComas, city treasurer and chief financial officer. That has been spent and another $1,000 has been added to the postage machine.

When a line item such as postage goes over budget, the shortage is made up from another line item in the department budget, McComas said.

“As long as there is money in the department budget, shortages in one line item can be covered by money in another line item,” McComas said.

The city collects a 2 percent tax on hotel and motel rooms. The money is collected and tracked by city employees, but the money goes to the Advertising and Promotion Commission. The money is used to attract visitors to the city for work or play.

Rogers doesn’t have a tax on food, often referred to as a hamburger tax. Bentonville and Fayetteville are the only two cities in Northwest Arkansas that collect a hotel/motel tax and a food tax.

The 5 percent alcohol franchise tax is collected by the city on alcoholic drinks served in private clubs.

The clerk’s staff will mail report forms for the franchise fee in January and will include a letter explaining the change and an extra form, David said.

Hotel/motel and private club managers will be responsible for making copies or scanning the extra report and using the copy to pay the tax or fee, David said.

“It’s going to save more than $400 a month just in postage,” she said. “That doesn’t count the time it takes or the cost of envelopes and paper the city uses every month to send out the reports.”

City officials discussed putting a copy of the form on the city website, but decided not to now.

“Until we can offer collection of taxes and fees electronically on a secure website, putting the form on the website didn’t seem to be beneficial,” David said.

Hotel, motel and private club managers say not getting a report form each month could be a problem.

“This is going to be a little tricky,” said Annette Nichols, manager of the Hyatt Place hotel in Rogers. “We are a 24-hour-a-day, 365-day-a-year business. Without a reminder the tax is due, it’s going to be difficult to remember.”

John Moseley, house manager of Applebee’s in Scottsdale Center, had similar feelings.

“It’s going to be difficult to remember to pay the franchise fee without some kind of reminder each month,” Moseley said.

Most chain hotels, motels, private clubs and chain restaurants fill out the forms, but the checks to pay the tax or fees comes from the corporate office, Nichols and Moseley said.

The franchise fee will continue even though residents recently approved alcohol sales in Benton County. The election didn’t address liquor by the drink, only package stores along with beer and local wine sales in convenience stores.

The hotel/motel tax is due before the 30th of the month. If filed before the 20th of the month, a hotel can deduct a 2 percent discount from the total tax.

Alcohol franchise fees are due on the 20th of each month. There’s no discount on the fee for early payment. David said the city followed state statues, which doesn’t offer discounts.

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