ARKANSAS (KFSM) — Amazon announced on Friday (Feb. 10) they would begin collecting sales tax for Arkansas starting March 1.
Governor Asa Hutchinson was quick to praise the measure, saying it was good news for the state.
“This step by Amazon has been voluntary and reflects the new landscape in which retailers recognize the practicality and fairness of sales tax being treated equally between online sales and in person store sales,” Hutchinson said in a release.
Amazon currently collects sales tax in 38 states.
Senator Jake Files recently filed a bill that would require Amazon to collect the tax, stating that it could bring in nearly $100 million to the state if all major online retailers joined in.
Here’s Hutchinson’s full response:
“The announcement from Amazon to start the sales tax collection for Arkansas in March is laudable and good news for the state. Arkansas will join the other 38 states in which Amazon is collecting and remitting sales tax. This step by Amazon has been voluntary and reflects the new landscape in which retailers recognize the practicality and fairness of sales tax being treated equally between online sales and in person store sales. This decision also shifts the responsibility of sales tax payment from the customer to the retailer at the time of checkout—providing further clarity and efficiency to the current and often misunderstood Arkansas law.
“As everyone knows, lowering our state’s income tax rate has been a priority of mine from day one. This strengthened revenue stream will allow us to continue to make progress in cutting the income tax rate, making Arkansas more competitive with our surrounding states, and putting money back into the pockets of hardworking Arkansans.”
