The Courier News On-Line
By Ibby Caputo, Arkansas Nonprofit News Network
04:16 PM, Wednesday, February 15 2017
Last week, Amazon announced it planned to voluntarily collect sales tax in Arkansas starting in March. Now, a bill filed in the House seeks to dedicate that revenue to reducing income tax.
Rep. Andy Davis (R-Little Rock), the lead sponsor of the bill, said, “This was the quickest way to get something out there to demonstrate to my voters and to other members’ voters that our intention is to reduce income taxes if out-of-state internet retailers begin to pay the state sales taxes.
“Most taxpayers don’t mind paying taxes when they know what they’re getting for their money, but when they start paying a lot of taxes, and they don’t know what they’re going to get for it, they don’t like that.”
House Bill 1512 would expand an 2015 act that was largely hypothetical at the time it was passed. In anticipation of Congress passing a law requiring out-of-state sellers to collect sales and use tax, the 2015 Arkansas law calls for online sales and use tax revenue above $70 million to be used for income tax reduction. Federal law does not require out-of-state online sellers to collect sales tax.
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