Sunday, February 25, 2007

Arkansas, Taxing the Internet

Passing it's way through the legislature is a bill, SB 280, that will allow Arkansas to collect taxes on Internet transactions made by Arkansans. This bill will make Arkansas a full participant of the Streamlined Sales and Use Tax Agreement which went into effect October 2005. Arkansas will join 15 other states in collecting taxes from Internet purchases.
I remember when our Governor campaigned on getting more businesses into Arkansas. This bill is a really good way to make sure businesses leave. Heck, if my business was using the Internet for most of my sales, I'd leave for a state that wasn't making me collect it for 15 other states. It would have been a whole lot smart if Arkansas was declared a Internet tax free state. Those businesses with a strong Internet presence would move to Arkansas. They in turn would employ Arkansans and generate more payroll, sales, and property taxes. Unfortunately, one cannot accuse the present Governor and Legislature of being visionary.
I can tell you this, I'm not shopping in those states that are collecting taxes. Arkansas will not be collecting any sales tax from my Internet purchases.

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