GENTRY — A resolution was adopted by the Gentry City Council at its June 5 meeting urging state and federal lawmakers to adopt laws requiring local and state sales and use taxes to 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 in an effort to level the playing field between Internet companies and local brick and mortar establishments.
According to Kevin Johnston, Gentry's mayor, such a bill is not a new tax but a means to collect taxes already required by state law.
Under current 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 local stores and businesses do.
Not collecting those taxes not only puts local brick-and-mortar businesses and companies which collect and submit those 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, and especially so since Internet sales continue to climb and many large Internet retailers do not 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 is not binding and the governor and state legislators are not required to act upon it.
Approved on its third and final reading was an ordinance amending the city's subdivision regulations to ensure that, 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.
General News on 06/21/2017