MOUNTAIN HOME, AR - A state tax rule requires growers who sell their produce off the farm to collect state and local sales taxes.
In Mountain Home, produce grower Elton Mitchell says he found out about the requirement from another grower and he applied for his sales tax permit last month.
The state Dept. of Finance and Administration considers the many farmers markets across the state to be off-the-farm establishments, and vendors are responsible for collecting and remitting sales taxes. The rule change was approved in December.
Mitchell says he won't bother collecting the tax from customers but will pay the government out of his pocket at the end of the year.
The DFA says about 100 state tax officials check for sales tax permits across the state. If a business if found to not have a permit, it could be audited. Businesses are required to keep their sales tax information for six years.