Panel approves Internet tax bill

The House Revenue and Taxation Committee on Tuesday advanced a bill that would make several tax code changes, including requiring out-of-state online sellers to collect sales and use taxes from in-state purchasers.

In a voice vote with one dissenting vote, the 20-member tax committee recommended House approval of an amended version of Senate Bill 576 by Sen. Bart Hester, R-Cave Springs.

SB576 also would phase in a reduction in the top corporate income tax rate from 6.5 percent to 5.9 percent; phase in an extension of the five-year carry-forward period for businesses' net operating losses to 10 years; and provide for a single-sales factor for the apportionment formula used by corporations for income tax filings. It also would change taxes that apply to carwashes.

Last Thursday, the committee declined to recommend the amended bill. The "sticking point" then was the bill's changes in the taxation of carwashes, said the bill's House sponsor, Rep. Dan Douglas, R-Bentonville.

Read more: https://www.nwaonline.com/news/2019/apr/03/panel-approves-internet-tax-bill-201904-1/