Sales tax numbers across Arkansas, Baxter County and Mountain Home are up for the year, according to a report August 2nd from the Arkansas Department of Finance and Administration, yet it is unclear if Amazon has had an impact on the increase. In February, Amazon said it would voluntarily collect sales taxes from Arkansas consumers beginning in April, which lawmakers say could generate as much as $100 million, to help lift the state’s revenue and potentially fund future income tax cuts.
According to the Arkansas Democrat-Gazette, state finance officials of the DFA have declined to comment on the expected revenue from Amazon, citing a state law that bars them from commenting on the specific status of taxpayers. Retailers remit on a monthly basis. The March figures, released in April, should begin to indicate the impact of the Amazon policy change.
The state should have a good idea of the results, even if it may not share that information publicly. Businesses collecting taxes file a business tax registration form and file individually.
Baxter County Treasurer Jenay Mize says the reports she receives from the DFA are generalized.
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The categories listed in the reports Mize is referring to have items of which many can be found on Amazon’s website, making it even more difficult to determine what money is going where.Regardless of the public not having access to Amazon’s sales tax contribution, Arkansas Governor Asa Hutchison thinks the revenue would be good for the state. He says he hopes a task force that
will recommend changes to Arkansas’ tax code will also look at a proposal that failed in this year’s legislative session to require all online retailers to collect and remit state sales taxes.Supporters of the idea say it would create a fairer environment for retailers in the state already collecting the tax.The proposal which failed in the legislature had the backing of Bentonville-based Wal-Mart, but faced opposition from conservative groups such as Americans for Tax Reform.
Amazon currently collects sales taxes in 38 states and the District of Columbia, according to the company’s website.
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