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Committee reviews Ackerman measure to add 2% restaurant tax for tourism; bill reported out
Summary
House Bill 4171 would permit the town of Ackerman to impose a 2% restaurant tax for tourism purposes and includes a referendum. The committee reported the bill out after discussion of caps and usage standards.
The chair presented House Bill 4171 to the Senate Local and Private Committee, describing it as a town‑level measure authorizing a 2% restaurant tax in Ackerman to fund tourism-related purposes with a referendum attached.
"This is a 2% restaurant tax in Ackerman for tourism. There is a referendum attached to it," the chair said when introducing the bill.
Committee members asked whether a 2% rate is a standard cap. One lawmaker said municipalities historically were subject to a 2% cap on hotel/motel/restaurant taxes and that some 3% rates have since appeared, creating administrative complexity for the tax commission. The member argued for standardized definitions and for tying tax proceeds to clear purposes such as tourism and parks.
After brief discussion, the committee voted by voice to report House Bill 4171 out of committee for further action by the chamber.
