LITTLE ROCK, Ark. (AP) - A Little Rock official says the Legislature must pass a bill in order for the city to sue online retailers over sales tax collection.
The Arkansas Democrat-Gazette reports the Arkansas Legislature tried passing a bill this year that would've required larger online retailers to collect local and state sales taxes and remit those collections back to Arkansas. The bill passed the Senate but failed to pass the House.
City directors Dean Kumpuris and Lance Hines are proposing a measure that wouldn't require online retailers to collect local sales taxes. Instead, the retailers would be required to send customer information to Arkansas so its cities could attempt to collect the taxes.
City attorney Tom Carpenter estimates collecting the tax would increase Little Rock's financial reserves by about $10.5 million annually.
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