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1. What is the sales tax rate for the City of Fayetteville?

The sales tax on purchases made within the city limits is collected by the State of Arkansas, except the Hotel/Motel/Restaurant (HMR) and supplemental beverage taxes which are remitted to the City. Sales Tax Rates

2. What is the Hotel/Motel/Restaurant (HMR) Tax?

The City of Fayetteville currently has a 2% HMR tax on establishments engaged in the business of renting, leasing or otherwise furnishing hotel or motel accommodations, or selling prepared food or beverages for consumption on or off premises.

New businesses need to complete the HMR/SB Tax Registration Form - Data Sheet. Additional City reporting forms and applications are available by request at 479-575-8287 or on the Applications, Forms and Links page.

3. Are Short-Term Rental (STR) businesses required to remit the HMR tax?

Yes, short-term rentals must obtain a business license and remit monthly HMR taxes per City Ordinance 6427.

4. What about platforms that collect/remit taxes on behalf of STR businesses?

All STR business owners should contact the City of Fayetteville Accounting Office to determine HMR tax remittance status.

On December 28th, 2017, a Voluntary Collection Agreement was successfully executed between the City of Fayetteville and Airbnb regarding HMR taxes. As of February 2018, Airbnb has collected and remitted the HMR tax monthly to the City of Fayetteville on behalf of “hosts.”

On March 28th, 2022, a Voluntary Collection Agreement was successfully executed between the City of Fayetteville and HomeAway/VRBO. Effective May 1st, 2022, VRBO will begin collecting HMR taxes and remitting to the City of Fayetteville in accordance with this agreement. Between May 2021 and April 2022, any Short-Term Rental (STR) owners using HomeAway/VRBO must remit the HMR tax as this time frame is not covered under the agreement.

STR owners and operators who list on any other platforms or by any other means are individually responsible for collecting the HMR tax from guests and remitting it to the City on a monthly basis. 

5. What is the Supplemental Beverage (SB) Tax?

The City of Fayetteville currently has a 5% SB tax that must be remitted monthly at the same time that the state supplemental tax is due. Please contact the Accounting Department for more information at 479-575-8287.

6. Does the City of Fayetteville require a business license?

Yes, all businesses (including home-based businesses and short-term rentals) within the incorporated city limits of Fayetteville must obtain a Business License unless the business qualifies for an exemption. For more information, please visit the Business License page.

7. How can I pay my Accounts Receivable invoice?

Payments can be made in-person, by mail, or online.

Cash, check, MasterCard or Visa are accepted at City Hall, located at 113 W. Mountain Avenue. You can pay with a check by mail, or you can pay online with MasterCard or Visa on our Make a Payment page.

8. Can I pay Hotel/Motel/Restaurant (HMR) or Supplemental Beverage (SB) taxes online?

Note: Starting Dec. 1, Fayetteville businesses that pay Hotel/Motel/Restaurant (HMR) Tax and Supplemental Beverage (SB) Tax will be able to report sales and pay the taxes online. More details to follow soon.

You cannot pay these taxes online at this time. A check, cashier check, or money order should be mailed along with the reporting form to:

Accounting
City of Fayetteville
113 W. Mountain Avenue
Fayetteville, AR 72701

Reporting forms are available to you by request at 479-575-8287 or on the Applications, Forms and Links page.

9. What types of transportation related permits does the City require?

The City of Fayetteville requires various permitting for the following: 

• taxicab
• limousine
• non-motorized passenger transport vehicle
• rental car service

The City requires taxicab, limousine, and non-motorized passenger companies to obtain a company permit approved by the City Council known as the Certificate of Public Convenience and Necessity. Applicants must apply through the Police Department and be presented on application to the City Council. Once that certificate is approved by the City Council, additional permits are then required through the Police Department, and these vary depending on Certificate Type. You can contact the Police Department at 479-575-8355 to begin the permitting process.

Rental car service permits are remitted to the Accounting Division. You may contact Accounting at 479-575-8287 to request a form or fill one out online. View the Rental Car Service Privilege Permit form.

10. How do I obtain the City of Fayetteville Financial Reports?

Financial Reports can be found online. Visit the Financial Reports page.

11. What are the Accounting Division's operating hours?

Hours are Monday through Friday: 8:00am - 12:00pm and 1:00pm - 5:00pm. Please refer to the calendar for closings.