LITTLE ROCK, Ark. (AP) – An effort to collect sales taxes in Arkansas from online retailers has failed before a House committee, days after Amazon announced it would begin collecting taxes on purchases in the state.
The proposal requiring out-of-state companies without a physical presence in Arkansas to either collect sales taxes or send information to the state on purchases made by residents failed before the House Revenue and Taxation Committee on a 6-2 vote. The proposal needed 11 votes to advance to the House floor.
The measure failed after the panel rejected a proposal by Democrats to direct $25 million from the increased online revenue toward several needs, including pre-kindergarten and after-school programs.
Amazon announced last week it would begin collecting sales taxes in Arkansas in March.
The proposal requiring out-of-state companies without a physical presence in Arkansas to either collect sales taxes or send information to the state on purchases made by residents failed before the House Revenue and Taxation Committee on a 6-2 vote. The proposal needed 11 votes to advance to the House floor.
The measure failed after the panel rejected a proposal by Democrats to direct $25 million from the increased online revenue toward several needs, including pre-kindergarten and after-school programs.
Amazon announced last week it would begin collecting sales taxes in Arkansas in March.
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