GENTRY -- The City Council passed a resolution recently urging state and federal lawmakers to adopt laws requiring local and state sales and use taxes be collected and paid by companies doing business on the Internet.
The resolution also calls on Arkansas Governor Asa Hutchinson to call a special session to pass such legislation.
The law failed to pass in the most recent Arkansas legislative session, in part because some state legislators saw the proposed bill as a new tax, but officials across the state are urging its passage to level the playing field between Internet companies and brick and mortar stores.
According to Mayor Kevin Johnston such a bill isn't a new tax but a means to collect taxes already required by law.
Under state law, Arkansas consumers are required to pay uncollected sales and use taxes on Internet purchases. But, because most fail to report and pay their taxes, the requested legislation would require Internet sales companies to collect and submit the appropriate point-of-destination sales taxes to the state in the same way as stores and businesses do.
Proponent say not collecting those taxes not only puts brick-and-mortar businesses which collect and submit the taxes at a disadvantage, it reduces tax revenue for state and local governments and causes them to cut services or look to other revenue sources, since Internet sales continue to increase and many large Internet retailers don't collect and submit sales taxes for the state and locality where the products and goods are delivered.
The resolution is a recommendation only of the City Council, similar to those of other local government entities. It isn't binding and the governor and state legislators aren't required to act upon it.
The council also approved on its final reading an ordinance amending the city's subdivision regulations to ensure when subdivisions are completed in phases, each phase results in all city and fire code regulations being met. The change was viewed as important to prevent incomplete subdivisions from being out of compliance in the event work is delayed or discontinued.
NW News on 06/22/2017