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Old 02-08-2017, 06:15 AM
 
7,006 posts, read 2,726,432 times
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Quote:

LITTLE ROCK, Ark. (ANNN) - A bill that would require shoppers to pay Arkansas sales tax on online purchases passed in the House 54-26 Tuesday.

House Bill 1388 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 due. 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. Arkansans would be expected to remit the sales tax with their income tax returns.

"We don't have the goose that laid the golden egg," said Rep. Dan Douglas (R-Bentonville), lead sponsor of the bill. "If you want to fund pre-K, you have to vote for this bill. If you want to fund highways, you can vote for this bill. If you want to do tax cuts, here's the money."

Sales Tax Collection Bill Passes House - Story | ArkansasMatters


I can't imagine anyone but the fat cat politicians are happy with this bill. Arkansas is already one of the heaviest taxed states in the US. And their rational is that in order to have tax cuts, you have to add more taxes??

Gov. Asa ran on a campaign promise that he was going to cut taxes for the middle class. He claimed that he accomplished that goal. Well apparently, they used fuzzy math because in 2016, I was shocked to have to pay income tax instead of getting a refund even though my salary did not go up. Funny when it comes to a tax cut law, it is greased in thick slow slug, but bills like this go through like lightning.
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Old 02-08-2017, 07:23 AM
 
Location: Ozark Mountains Arkansas
1,297 posts, read 778,280 times
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When will this go into effect? Anyone know?

I'm guessing it's going to be a 6% tax since that's the state portion of sales tax.

This also adds a lot of paperwork for online retailers. So at the end of each year, they have to send a statement to customers and to Arkansas. Some of the larger ones like Amazon will probably add it in the purchase but smaller companies won't.
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Old 02-08-2017, 08:46 AM
 
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Originally Posted by Hollynla View Post
When will this go into effect? Anyone know?

I'm guessing it's going to be a 6% tax since that's the state portion of sales tax.

This also adds a lot of paperwork for online retailers. So at the end of each year, they have to send a statement to customers and to Arkansas. Some of the larger ones like Amazon will probably add it in the purchase but smaller companies won't.
Which means it is going to make filing your personal income tax a lot more difficult. If I am reading it right, buyers will have to keep track of their online purchases and submit payment when you file your tax? We are not accountants. This is an awful awful bill.


I guess it's one way to encourage people to shop more brick and mortar around here.
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Old 02-08-2017, 09:26 AM
 
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I don't have a problem with it.


Why should online shoppers be exempt ?
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Old 02-08-2017, 09:33 AM
 
Location: Ozark Mountains Arkansas
1,297 posts, read 778,280 times
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Originally Posted by David A Stone View Post
I don't have a problem with it.


Why should online shoppers be exempt ?
Yeah, I can't say I have a problem with it either. I just hope it doesn't become a tax nightmare for customers and retailers at the end of the year. If the state needs additional revenue to keep a balanced budget, I'd rather this than have current sales tax increased or income tax increased.
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Old 02-08-2017, 10:40 AM
 
Location: Bella Vista, Ark
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Quote:
Originally Posted by David A Stone View Post
I don't have a problem with it.


Why should online shoppers be exempt ?
I have been a soppoter of the bill forever and I am as conservative as they come. OP, first of it is a bill that Womack is trying to push thru on a federal level, not just AR. If it becomes law, you can gripe all you want, but it wiil be inposed nationwide and should be.

Of course I love the idea of not paying tax on my Amazon purchases and other on line products, but how do you expect our cities and the small business man to survive without us paying taxes on our purchases? I have to honestly say, I see nothing wrong with this. Everyone wants something for nothing, that isn't the way it works.

What I do resent and that is paying taxes on food.
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Old 02-08-2017, 10:52 AM
 
Location: Fayetteville, Arkansas via ATX
1,197 posts, read 1,161,561 times
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I'm a supporter of this and I shop online almost exclusively.

Tax-free exceptions for online retailers isn't fair to local businesses.
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Old 02-08-2017, 11:27 AM
 
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Originally Posted by nmnita View Post
I have been a soppoter of the bill forever and I am as conservative as they come. OP, first of it is a bill that Womack is trying to push thru on a federal level, not just AR. If it becomes law, you can gripe all you want, but it wiil be inposed nationwide and should be.

Of course I love the idea of not paying tax on my Amazon purchases and other on line products, but how do you expect our cities and the small business man to survive without us paying taxes on our purchases? I have to honestly say, I see nothing wrong with this. Everyone wants something for nothing, that isn't the way it works.

What I do resent and that is paying taxes on food.
Arkansas is already one of the most taxed states in America and we have pathetic little to show for it. We have a high poverty rate so any new taxes is just going to make it more difficult to get ahead. And then on top of that, asking us to be accountants and keep track and records of every penny bought online is just ridiculous. Only in Arkansas. If I am charged sales tax when I make the purchase and then asked to pay sales tax again on the same purchase when I file my taxes, then that is flat out double taxation and wrong.
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Old 02-08-2017, 11:33 AM
 
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Actually, this has been the law for years, at least in my state, and I think in all states (it's called the "Consumer Use Tax"), it's just that the consumer has been expected to voluntarily keep up with their online purchases and report it when they file their state income taxes.

I've been doing it ever since I was made aware that I was supposed to....I have to admit I was unaware of it for several years until my state returns added a line for it on the form. I was like, "Whaaaaa?" and so I googled it.

I just make a file in my email program every year (because you always get an email when you make an online purchase) labeled "2016 taxes", etc., and file all the emails for purchases in there. Then I go there and add them all up when I file my state taxes. A little annoying, but as Nita said, necessary.
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Old 02-08-2017, 11:57 AM
 
Location: San Diego / NWA
584 posts, read 283,891 times
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Quote:
Originally Posted by jeffbase40 View Post
Arkansas is already one of the most taxed states in America and we have pathetic little to show for it. We have a high poverty rate so any new taxes is just going to make it more difficult to get ahead. And then on top of that, asking us to be accountants and keep track and records of every penny bought online is just ridiculous. Only in Arkansas. If I am charged sales tax when I make the purchase and then asked to pay sales tax again on the same purchase when I file my taxes, then that is flat out double taxation and wrong.
Why so angry? There isn't anything you can do about it so just go with the flow.

I think that the online retailers will collect the tax and then be responsible to the individual states for disbursement. I don't believe you will be required to keep track of anything, just like buying at your local store.
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