KASU

Perrin: Arkansas, Jonesboro can benefit from SCOTUS internet sales tax ruling

Jul 6, 2018

After a recent United States Supreme Court ruling, the City of Jonesboro will be closely watching next year’s legislative session in Little Rock.  

Last month, the High Court ruled that cities and states can collect sales taxes from online purchases.  It was seen as a victory for brick-and-mortar stores and for some states that say they have missed on billions of dollars in annual revenue. 

Jonesboro Mayor Harold Perrin has said previously that not paying internet sales taxes is “tax evasion”.  Perrin says he is pushing for the General Assembly to take this issue up during next year’s legislative session in Little Rock. 

He says he wants legislators to pass the ruling as is in Arkansas.  Perrin says there is a potential for hundreds of millions of dollars annually to come to Arkansas, with Jonesboro receiving a portion of those funds.  

He says the Department of Finance and Administration will determine how the funds would be distributed to cities after legislators pass a bill. 

Perrin used Alabama as an example.  Alabama has collected internet sales tax and last year received $382-million.  Of that money, 60% went to cities and 40% went to counties. 

Perrin says he would like to see sales taxes distributed according to zip codes that online purchases were made.