LITTLE ROCK, Ark. (KTHV) - Taxpayers owe Arkansas $370 million in back taxes. It sounds big, and it is. But here's some perspective, it's five percent of the state's 7.5 billion dollar budget.
Revenue Commissioner Tim Leathers says this is not unusual, but the State is actively pursuing those back taxes, "We garnish wages, garnish bank accounts, on businesses, we have a business shut-down procedure that we can close a business that's delinquent for three months."
Five years ago, they shut down businesses if they didn't pay their sales tax, but not property taxes or employee withholding taxes.
Leathers says this has been successful for Arkansas and that other states are looking to pass similar laws.