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Arkansas 5th state to pass internet tax legislation

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Arkansas 5th state to pass internet tax legislation

Apr 07 2011

Arkansas has just become the fifth state to enact a state law that requires Internet retailers to collect sales tax if they do business with in-state affiliate web sites. The law imposes sales tax-collection responsibilities on Internet retailers that are referred visitors by affiliate web sites based in Arkansas and generate more than $10,000 a year in sales from Arkansas residents.

The four other states with similar laws are New York, North Carolina, Rhode Island and Illinois. Ten other states are considering "Amazon tax" legislative bills designed to force sales tax collection by Internet retailers: Arizona, California, Connecticut, Hawaii, Massachusetts, Missouri, Minnesota, Tennessee, Texas and Vermont.

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