City of Hot Springs v. Vapors Theatre Restaurant, Inc.

Robert H. Dudley, Justice.

This case involves a special tax on mixed drinks. The specific issue is whether the City of Hot Springs may collect a three percent “hospitality” tax pursuant to an ordinance enacted by authority of Ark. Code Ann. § 26-75-602 (1987), in addition to the customary ten percent mixed drink tax collected by the City under authority of Ark. Code Ann. § 3-9-213 (1987). The circuit judge ruled: that the hospitality tax could not be added on to the regular mixed drink tax. We affirm.

In 1969, the General Assembly passed Act 132, the mixed drink act. Section 8 of that Act,…