{"id":646,"date":"2017-02-07T00:30:29","date_gmt":"2017-02-07T00:30:29","guid":{"rendered":"http:\/\/arknews.org\/?p=646"},"modified":"2017-02-07T00:30:29","modified_gmt":"2017-02-07T00:30:29","slug":"online-sales-tax-bill-passes-in-the-senate","status":"publish","type":"post","link":"https:\/\/arknews.org\/index.php\/2017\/02\/07\/online-sales-tax-bill-passes-in-the-senate\/","title":{"rendered":"Online sales tax bill passes in the Senate"},"content":{"rendered":"<figure id=\"attachment_651\" aria-describedby=\"caption-attachment-651\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-651\" src=\"http:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-600x754.jpg\" alt=\"\" width=\"600\" height=\"754\" srcset=\"https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-600x754.jpg 600w, https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-768x965.jpg 768w, https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-1170x1470.jpg 1170w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-651\" class=\"wp-caption-text\">Sen. Jake Files<\/figcaption><\/figure>\n<p>Arkansas is one step closer to casting a wider net when it comes to collecting sales tax. A bill aimed at raising state revenue through the collection of sales and use tax on online purchases passed 23-9 in the Senate Monday.<\/p>\n<p>\u201cNobody wants to pay more taxes, by any stretch,\u201d said Sen. Jake Files (R-Fort Smith), lead sponsor of <a href=\"http:\/\/www.arkleg.state.ar.us\/assembly\/2017\/2017R\/Pages\/BillInformation.aspx?measureno=SB140\">Senate Bill 140<\/a>, which would require out-of-state sellers who do a certain amount of online business in Arkansas to collect sales and use tax.<\/p>\n<p>\u201cBut in a fairness situation to our local businesses that are investing in our community -- they\u2019re putting people to work, they\u2019re paying property tax -- this is the right thing to do because it puts them on an equal playing field with the companies that deal out of state,\u201d Files said.<\/p>\n<p>Files' bill would go against court precedent. A 1992 Supreme Court ruling prevents\u00a0states from forcing out-of-state sellers without\u00a0a physical presence to collect tax. Now that web-based retail is an integral part of the economy,\u00a0many people believe the ruling is ripe for a challenge.<\/p>\n<p>Files\u2019 bill would require online sellers that gross more than $100,000 or process at least 200 separate transactions to collect sales tax. The bill is based on legislation adopted in South Dakota, where online retailers sued after the law went into effect; their suit is pending. Amazon began collecting sales tax on purchases made in South Dakota after the law was passed.<\/p>\n<p>\u201cI think the reason that Amazon is voluntarily collecting the tax in these states is because they see the writing on the wall,\u201d Files said. \u201cIf they felt like this was going to be challenged and defeated, I don't think you'd see them volunteering [to collect sales tax] all over the country.<\/p>\n<p>But some people see the collection of sales tax online as a new tax.<\/p>\n<p>\u201cSo this is a tax increase?\u201d Sen. Linda Collins-Smith (R-Pocahontas) asked Files on the Senate floor. \u201cThe taxes that are not being charged right now because they\u2019ve never been charged \u2026 is now going to be charged?\u201d<\/p>\n<p>Files said he has received texts and emails from constituents with similar concerns.<\/p>\n<p>\u201cPeople are just misinformed,\u201d Files said. \u201cThe tax is on the books now, the fact that nobody is paying it ... doesn't mean that it's not a tax and it's not due.<\/p>\n<p>Technically, Arkansas taxpayers are supposed\u00a0to declare and remit use tax for items they buy online, but few do. The requirement is based\u00a0on a 1949 law that was passed to deal with catalog sales. Out-of-state merchants who sold goods through catalogs were not required to collect sales tax if they didn\u2019t have a physical nexus, so the state required Arkansans to pay a \u201ccompensating use tax,\u201d according to Joel DiPippa, a lawyer with the Department of Finance and Administration.<\/p>\n<p>DiPippa said SB 140 does not propose a new tax. \u201cIt\u2019s a change in the enforcement and collection methodology,\u201d DiPippa said.<\/p>\n<p>The revenue impact of the bill is unknown, according to the Department of Finance and Administration. DiPippa says\u00a0there is no record of what taxpayers are buying on the internet.<\/p>\n<p>\u201cWe are unable to even estimate how much revenue this would bring in because we don\u2019t know what isn\u2019t taxed,\u201d he said.<\/p>\n<p><a href=\"http:\/\/www.arkleg.state.ar.us\/assembly\/2017\/2017R\/Pages\/BillInformation.aspx?measureno=HB1388\">House Bill 1388<\/a>, filed by Rep. Dan Douglas (R-Bentonville) and co-sponsored by Files,\u00a0approaches\u00a0the collection of sales tax on online purchases from a different direction. It would require out-of-state online retailers who do not already collect sales and use tax in the state to warn Arkansas customers that a sales or use tax was\u00a0due. Online retailers would also have to send the customer an annual statement detailing the online purchases and taxes owed and would have to send an annual report of sales for each customer to the Arkansas Department of Finance and Administration.<\/p>\n<p>Files says\u00a0he thinks the Senate bill is better.<\/p>\n<p>\u201c[The House bill] was filed in the case that this was deemed unconstitutional, we\u2019d have a backup plan that was constitutional,\" he\u00a0said.<\/p>\n<p>The House bill is modeled after a Colorado law that was upheld by the 10th\u00a0U.S. Circuit Court of Appeals. The U.S. Supreme Court refused\u00a0to hear the case, allowing the appellate court\u2019s decision to stand.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arkansas is one step closer to casting a wider net when it comes to collecting sales tax. A bill aimed at raising state revenue through the collection of sales and use tax on online purchases passed 23-9 in the Senate Monday. \u201cNobody wants to pay more taxes, by any stretch,\u201d said Sen. Jake Files (R-Fort [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":651,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[43,20,44,45,18],"class_list":["post-646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-arkansas-general-assembly","tag-dan-douglas","tag-jake-files","tag-joel-dipippa","tag-linda-collins-smith","tag-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Online sales tax bill passes in the Senate - Arkansas Nonprofit News Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/arknews.org\/index.php\/2017\/02\/07\/online-sales-tax-bill-passes-in-the-senate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Online sales tax bill passes in the Senate - Arkansas Nonprofit News Network\" \/>\n<meta property=\"og:description\" content=\"Arkansas is one step closer to casting a wider net when it comes to collecting sales tax. A bill aimed at raising state revenue through the collection of sales and use tax on online purchases passed 23-9 in the Senate Monday. \u201cNobody wants to pay more taxes, by any stretch,\u201d said Sen. Jake Files (R-Fort [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/arknews.org\/index.php\/2017\/02\/07\/online-sales-tax-bill-passes-in-the-senate\/\" \/>\n<meta property=\"og:site_name\" content=\"Arkansas Nonprofit News Network\" \/>\n<meta property=\"article:published_time\" content=\"2017-02-07T00:30:29+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-1170x1470.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1170\" \/>\n\t<meta property=\"og:image:height\" content=\"1470\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ibby Caputo\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/arknews.org\/#organization\",\"name\":\"Arkansas Nonprofit News Network\",\"url\":\"https:\/\/arknews.org\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/arknews.org\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/arknews.org\/wp-content\/uploads\/2021\/04\/annn_logo.png\",\"contentUrl\":\"https:\/\/arknews.org\/wp-content\/uploads\/2021\/04\/annn_logo.png\",\"width\":1200,\"height\":900,\"caption\":\"Arkansas Nonprofit News Network\"},\"image\":{\"@id\":\"https:\/\/arknews.org\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/arknews.org\/#website\",\"url\":\"https:\/\/arknews.org\/\",\"name\":\"Arkansas Nonprofit News Network\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/arknews.org\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/arknews.org\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/arknews.org\/index.php\/2017\/02\/07\/online-sales-tax-bill-passes-in-the-senate\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-1170x1470.jpg\",\"contentUrl\":\"https:\/\/arknews.org\/wp-content\/uploads\/2017\/02\/NKW0140-1170x1470.jpg\",\"width\":2786,\"height\":3500,\"caption\":\"Sen. 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