Small Change
for a
Better Magnolia
A Small Change. A Shared Investment.
Proposed Prepared Food Initiative
About A&P
The Magnolia Advertising and Promotion Commission (A&P Commission) was established to oversee the collection and utilization of taxes levied on the gross receipts from hotel and motel accommodations. The commission is tasked with utilizing the collected funds to promote tourism, conventions, and other related activities that benefit the local economy. It operates under specific legal guidelines that dictate how the funds can be raised, managed, and spent, focusing on boosting local business visibility, attracting visitors, and enhancing community events. The commission is pivotal in strategic planning for local tourism and economic development, ensuring that the cities remain competitive and appealing to both tourists and residents.
All requested monies for advertising and promotion must be spent within the City of Magnolia with the exception of television, radio, newspaper, web advertising and entertainment for local events. Brochures, booklets, posters, etc. must be printed in Magnolia. Monies spent for hotel, motel and bed and breakfast accommodations must be used with local hotels within Magnolia.
By Law, A&P Funds SHALL be used for:
-
Advertising and promoting Magnolia
-
Tourism promotion
-
Convention center projects
A&P Funds CAN Be Used For:
-
Supporting the arts
-
Tourist-oriented facilities like family attractions & entertainment
A&P Funds WILL NOT Be Used For:
-
General city improvements
-
Daily city operations
-
General subsidies for civic groups or chambers
How Funds Will Be Used
70% for Community Improvements
-
Park upgrades across Magnolia
-
New recreation opportunities
-
Long-term projects like a community and aquatic center
30% for Promotion and Events
-
Marketing Magnolia across the region
-
Supporting festivals and local events
-
Enhancing community spaces
Community Impact
-
$220,850 invested in Magnolia parks since 2022
-
Over $200,000 invested in community events in 2024
-
Local beautification projects throughout Magnolia
-
Tourism promotion and marketing for Magnolia
Priority Community Projects
Parks and Recreation Improvements
-
South Side Park upgrades
-
Eastside Park improvements
- Additional park enhancements
Community & Aquatic Center
-
Indoor aquatic center
-
Meeting rooms and community programming
Arkansas Cities with the Prepared Food Tax
City (AR)
Lodging
A&P Rate
Prepared Food A&P Rate
Example Projects/Uses
Little Rock
4%
2%
Supports CVB promotion & city events (e.g. festival funding, advertising)
Hope
2%
2%
Provides grants for city park improvements, tourism marketing, and improvements on tourism-related buildings
Batesville
3%
1%
Offers A&P event grants to attract conventions; helped launch county-wide wayfinding signage program
Camden
3%
1%
Paid for a new 18-hole disc-golf course at Carnes Park and local festivals through A&P grants
PREPARED FOOD BASICS
In general, the tax will be applicable to all restaurants and mobile food vendors and all products served in restaurants and all products served in restaurants and mobile food vendors. Grocery, supermarket, or convenience store products are taxable only to the extent they are restaurant-style products. Beyond that generalization, a couple of guidelines can be used as rules of thumb:
-
If a food or beverage is prepared on site, it is taxable
-
If it is served on site, it is taxable
-
If it is prepared off site in packages ready for retail sale, it is not taxable, unless it is served
-
If it is prepared off-site but not prepackaged for retail sale, it is taxable.
-
A can of soda from a cooler in a convenience store is not taxable. A can of soda served to a diner in a restaurant is taxable; a fountain soda is taxable either way.
-
Pizzas delivered to homes or served in restaurants are taxable, but purchased pre-packaged in a grocery store are not taxable.
-
Pre-packaged foods such as pizzas or burritos heated in a convenience store microwave are not taxable but the same type of items not pre-packaged and selected out from under a heat lamp by the clerk at the same convenience store is taxable.
-
Cheese dip served to restaurant diners is taxable as is cheese dip sold for take home. Cheese dip sold in retail ready packages at the cashier of the same restaurant is not taxable.
-
Donuts boxed and packaged for retail are not taxable; unpackaged donuts served by wait staff or self served individually are taxable
Long Term Impact
-
Stronger Parks and Recreation
-
Increased tourism, restaurant, and hotel traffic
-
Sustainable investment in Magnolia's future
CONTACT
© 2026 A Small Change for Magnolia.