LITTLE ROCK, Ark. (AP) - Arkansas House members say online retailers will not have to collect Arkansas sales taxes.
The proposal received only 43 votes in the 100-member House on Monday. Opponents say the bill creates a new tax and infringes on congressional power to regulate trade among the states. Supporters say Arkansas needs it to balance competition among online retailers and brick-and-mortar stores.
The bill would have required companies without a physical presence in Arkansas that make more than $100,000 in annual sales or at least 200 transactions in the state to collect and remit sales taxes on those purchases.
Even without the law, Amazon last month began collecting Arkansas sales taxes on purchases made by state residents.