Jonesboro, AR Hotels & Lodging: Transient Occupancy Tax (2026)

Sec. 62-41 of the Jonesboro Code of Ordinances levies a tax of four percent upon the gross proceeds from renting, leasing, or otherwise furnishing hotel and motel accommodations, or short-term residential business rentals for profit, within the city limits. The tax is collected by the city advertising and promotion commission in the same manner as the state gross receipts tax under Act 386 of 1941, and all of that act's enforcement rules, regulations, and forms apply so far as practicable. Sec. 62-40 defines what falls inside the tax: hotel or motel accommodations rented on a day-to-day or week-to-week basis (excluding month-to-month or longer tenancies), and separately, short-term residential business rentals, meaning residential properties rented through platforms like Airbnb, newspaper ads, direct marketing, Craigslist, word of mouth, or any other advertising method on a day-to-day or week-to-week basis, where total rentals exceed 30 days in a calendar year; a property is further defined as a short-term residential business rental if the owner must carry commercial business insurance or file a Schedule E reporting rental income and expense.

Month-to-month or longer residential tenancies are excluded outright from Sec. 62-40's definition. Sec. 62-42 requires the advertising and promotion commission to keep a current list of every business establishment subject to the tax, and Sec. § 25-75-606 governing use of those funds. The tax is layered on top of, and separate from, the city's general 2% prepared-food gross receipts tax under Sec. 62-19 and the 1% sales and use tax under Sec. 62-75.