ARKANSAS – Online Sales-Tax Bill Sails In Senate, 27-3

A bill that would change several tax laws — including requiring out-of-state online sellers to collect sales and use taxes from in-state purchasers and changing the state’s corporate income-tax code — cleared the Arkansas Senate on Monday. The Senate voted 27-3 to send Senate Bill 576 by Sen. Bart Hester, R-Cave Springs, to the House for further consideration. SB576 also would phase in a reduction in the top corporate income-tax rate from 6.5 percent to 5.9 percent, phase in an extension of the five-year carry-forward period for businesses’ net operating losses to 10 years, and provide for a single-sales factor for the apportionment formula used by corporations for income-tax filings.