Internet sales tax bill fails in committee | Arkansas Blog

Internet sales tax bill fails in committee


The House Revenue and Taxation Committee voted 9-6, two votes short of the number required, for Sen. Jake Files' SB 140 to assess the sales tax on Internet sales if courts ruled that's constitutional.

As it stands, states can only collect sales taxes from organizations with physical operations in a state, though some commentary in court rulings have indicated a willingness to rethink past cases.

Democrats hold 10 seats on this committee and they were split on this vote. They've had some objections in the past to approving Internet sales tax without some commitment on how the new money would be used.

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