Arkansas to Enact Internet Sales Tax Law

Arkansas became the latest state to require Internet
retailers to collect sales tax, according to reports.

The legislation,
signed April 8 by Governor Michael Beebe, requires online retailers to collect
sales tax if they have affiliates in the state and do more than $10,000 of
business from Arkansas residents.

Illinois passed
similar legislation
in March.  In
addition to Illinois, laws requiring collection of Internet sales tax currently
exist in New York, Hawaii, North Carolina, and Rhode Island. They are also
being considered in California, Arizona, Vermont, Massachusetts, and several
other states.

In response, Overstock.com ended its relationship with
affiliates in the state, calling
the tax “unconstitutional.”

In 2010, Jewelers of America launched a campaign for “sales
tax fairness.” Jewelers can contact representatives about the issue through its
Legislative
Action Center.

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