January 20, 2003
Posted at: 5:36 p.m. CDT
LITTLE ROCK, Ark. -- Some state legislators say that sales tax exemptions will be given a serious review this session.
The state is looking everywhere for money to fund public education improvements and other government functions. They doubt that removing some exemptions will provide the pot of money Arkansas needs.
But they say the state must start with exemptions before asking people to pay higher taxes. Many legislators say all tax exemptions should be reviewed, and that the state should consider expanding the sales tax to cover things from legal advice to data management to hairdressers.
But Senate Revenue and Taxation Committee chairman Tim Wooldridge says Arkansas also must take care not to do anything that would hurt its business climate.