Arkansas’ new sales tax that covers most online retailers that weren’t being taxed before goes into effect this month, according to ABC News. Act 822 allows the state to now tax out of state retailers that are selling in the state over the internet. Act 822 is one of 32 laws that went into effect on July 1 in Arkansas.

"We had a number of companies that prior to July 1, when it was required that these remote sellers sign-up and remit sales tax - we had a number that proactively came to the state and said we'd like to sign up and become an Arkansas taxpayer," said Scott Hardin, spokesperson for the Arkansas Department of Finance & Administration.

Amazon and Airbnb were two companies that came to the state asking to be participating taxpayers in the state. Airbnb paid $1.2 million in tax revenue to Arkansas during its first year paying taxes.

The DF&A estimates that the new law will bring in an additional $3 million in revenue for the state. Only companies with annual sales of less than $100,000 or under 200 transactions are exempt from the new tax law.

Read the full story here


Economics, Finance and Investing