Below is the State Law in regards to the purpose of the A&P Tax:

The powers and duties of an advertising and promotion (“A&P”) commission are purely statutory in nature and are primarily defined at A.C.A. § 606 (Supp. 2007). Specifically with respect to your question, this statute provides as follows regarding a commission’s general powers and its particular role with respect to the issuance and retirement of debt:

(a)(1)(A) In the manner as shall be determined by the municipal advertising and promotion commission, all funds credited to the city advertising and promotion fund pursuant to this subchapter shall be used for the:

1. Advertising and promoting of the city and its environs;
2. Construction, reconstruction, extension, equipment, improvement, maintenance, repair, and operation of a convention center;
3. Operation of tourist promotion facilities in the city or the county where the city is located if the city owns an interest in the convention center or facility, and facilities necessary for, supporting, or otherwise pertaining to, a convention center; or
4. Payment of the principal of, interest on, and fees and expenses in connection with bonds as provided in this subchapter.
(B) The commission may engage such personnel and agencies and incur such administrative costs as it deems necessary to conduct its business.
(2)(A) The commission is the body that determines the use of the city advertising and promotion fund.
(B) Pursuant to this section, if the commission determines that funding of the arts is necessary for or supporting of its city’s advertising and promotion endeavors, it may use its funds derived from the hotel and restaurant tax.
(3)(A) The commission may purchase, own, operate, sell, lease, contract, or otherwise deal in or dispose of real property, buildings, improvements, or facilities of any nature in accordance with this subchapter.
(B) If the commission is dissolved, the city shall assume the authority under subdivision (a)(3)(A) of this section.
(b)(1)(A) Any city of the first class that may levy and does levy a tax pursuant to this subchapter may use or pledge all or any part of the revenues derived from the tax for the purposes prescribed in this subchapter or for the operation of tourist-oriented facilities, including, but not limited to, theme parks and other family entertainment facilities or for the retirement of bonds issued for the establishment and operation of other tourist-oriented facilities, including, but not limited to, theme parks and other family entertainment facilities.
(B) These revenues shall be used or pledged for the purposes authorized in this subsection only upon approval of the commission created pursuant to this subchapter.
(2) Funds credited to the city advertising and promotion fund pursuant to this subchapter may be used, spent, or pledged by the commission, in addition to all other purposes prescribed in this subchapter, on and for the construction, reconstruction, repair, maintenance, improvement, equipping, and operation of public recreation facilities in the city or the county where the city is located if the city owns an interest in the center or facility, including, but not limited to, facilities constituting city parks and also for the payment of the principal of, interest on, and fees and expenses in connection with bonds as provided in this subchapter in the manner as shall be determined by the commission for the purpose of such payment.

[[2]] (c)(1) All local taxes levied as authorized in § 26-75-602(a) shall be credited to the city advertising and promotion fund and shall be used for the purposes described in subsections (a) and (b) of this section.
(2) The taxes shall not be used:
(A) For general capital improvements within the city or county;
(B) For the costs associated with the general operation of the city or county; or
(C) For general subsidy of any civic group or the chamber of commerce. (3) However, the commission may contract with such groups to provide to the commission actual services that are connected with tourism events or conventions.
(4) The authorization and limitations contained in this subsection shall be reasonably construed so as to provide funds for promoting and encouraging tourism and conventions while not allowing such special revenues to be utilized for expenditures that are normally paid from general revenues of the city.