FORT SMITH, Ark. — As summer comes around and the days grow hotter, water parks like Parrot Island in Fort Smith are a popular attraction to cool off and have fun.
If you visited Parrot Island from 2021 to 2023, Fort Smith Deputy City Administrator Jeff Dingman says you may be eligible for a small reimbursement.
"Admission tickets to the waterpark, it's considered an amusement," Dingman said. "There's a state statute that says those types of admission tickets are exempt from sales tax."
Officials say while the park didn't charge sales tax when it opened, when the managing company, American Resort Management changed the point of sale equipment in 2021, the new programming failed to exempt the sales tax.
With a 9.5% sales tax over three seasons, the city looks to refund a total of $402,000 dollars.
"For most who bought a $20.00 ticket, that's less than $2 added to the ticket cost," Sebastian County Judge Steve Hotz said. "So I think for most people, it's very little impact, but it's their money and we want to get back to them."
The city and court are working together to give back that money. On Tuesday, the city's board of directors met to discuss the issue. They ultimately tabled it until June 18.
"The CEO and president of American Resort Management can be here in town to address both of the governing bodies as to what happened and why," Dingman said.
Hotz says it will be up to the circuit judge to approve the proposed reimbursement method for those that come forward or can be tracked down.
As for any funds left over, Hotz says they may put it back into the waterpark as that is where the patrons originally wanted the money to go. He adds they will continue to discuss the best course of action.
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