Oops … a Taxing Situation

by Talk Business & Politics ([email protected]) 62 views 

A reader e-mailed us to say an item in the Best & Worst of 2001 section of the Northwest Arkansas Business Journal‘s Dec. 24 issue was inaccurate.

We said 2 percent of the 10.125 percent sales tax on restaurant food in Fayetteville is actually taxed by the city.

We meant to say 2 percent of the total was a Fayetteville hotel-motel-restaurant tax.

The breakdown is: 5.125 percent state tax, 1 percent Washington County sales tax and Fayetteville collects 4 percent: 1 percent on general sales, 1 percent on the temporary library sales tax that expires at the end of March and will be replaced by a 0.75 percent sales tax for the sewer system, and 2 percent in HMR taxes.

Either way, 10.125 percent is too darned high.