Senator working bill to collect tax on items bought online - KAIT Jonesboro, AR - Region 8 News, weather, sports

Senator working bill to collect tax on items bought online

Sen. Jake Files (Source: Arkansas State Senate) Sen. Jake Files (Source: Arkansas State Senate)
LITTLE ROCK, AR (KAIT/KARK) -

A Northwest Arkansas state senator said this week he plans to file a bill, seeking to force the collection of taxes on goods bought over the Internet. 

According to a report from Little Rock television station KARK, Sen. Jake Files, R-Fort Smith, said the state is missing out on significant revenue. 

"We've got local vendors. They're selling the same product. The only difference between them and the online seller is the sales tax," said Files.

There has been a debate among retailers, especially brick-and-mortar businesses, and Internet-based businesses over sales tax collections for at least two decades.

Retailers have argued the difference in sales tax collected have put them in a tough spot, while Internet-based businesses have contended that purchasing items online helps with convenience.  

Files said the extra revenues would help to reduce the tax burden in other areas, according to KARK. 

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