There’s been very little notice in the press, but last week the state of Arkansas passed a law requiring web retailers to collect sales tax on items shipped to Arkansas. The new law is based on the assumption that if a web retailer has affiliates in the state, that qualifies as an in-state presence. It’s not actually called the “Amazon law”, but it’s pretty obvious that Amazon is the main target.
Unfortunately, Arkansas is following in the footsteps of Colorado and Illinois – states who have passed similar laws. Guess what? Amazon dropped its affiliates right after the law passed in each state.
Do you know the part that bothers me the most? Arkansas isn’t actually going after Amazon; it’s going after its own residents. This is a sales tax issue. Amazon wouldn’t pay the tax; it would only collect them from customers in Arkansas. I find the duplicity of focusing on the retailer instead of the customer annoying.
image by J. Stephen Conn