The tax is paid by visitors who stay in hotels, motels, or bed and breakfasts within the city limits of Paragould. The tax is levied at 3% of the total cost of lodging for any given stay.

Funds are used to market the community and to attract visitors to stay overnight. The commission strives to use these funds to make a positive economic impact for all businesses in Paragould, specifically the lodging industry and to builda sense of strong community pride in what Paragould has to offer.

The A&P Commissioners meet on the 2nd Thursday of each month at 5:30 p.m. at the Paragould City Council chambers located at 301 W. Court Street.

The Commission periodically accepts applications for funding. Please visit the "Funded Programs" page and complete the online application to apply for funding.

Funding amounts vary widely from $500 to $10,000. The commission asks that each applicant be able to justify and verify all funding requests and explain the need and the way in which funds will be used to increase tourism.

In 1965, the Arkansas legislature adopted Act 185, which provided that any city of the first class may, by ordinance of the governing body therof, levy a tax upon the gross receipts of proceeds from lodging accommodations, restaurants and food service businesses, thereby creating legislation establishing the Advertising & Promotion Commission. In August of 2018, the Paragould City Council approved an ordinance, which levied the tax and established the commission.