Times Record
Editor's note: This story has been updated to accurately state the kinds of businesses that were shut down for 74 days in Arkansas because of COVID-19.
Bar and restaurant owners in Fort Smith — who say they're already suffering under the COVID-19 pandemic — are worried about an incoming 5% alcohol tax hike from the city.
Slated to go into effect Dec. 1, 2021 with a study session to reconsider in October, the capped-out alcohol sales tax would push adult beverage taxes in Fort Smith up to 19.75% for beer, 23.75% for wine and 33.75% for liquor when purchased in a bar or restaurant. While it was presented to the Fort Smith Board of Directors at Dec. 15 meeting as a tax "upon the gross proceeds or gross receipts derived by such private club," City Administrator Carl Geffken on Wednesday said the tax would apply to all bars and restaurants in Fort Smith that serve alcohol.