As consumers embrace e-commerce and purchase more and more products on-line, many main street retailers are disadvantaged because they have the burden to collect sales taxes from their customers while on-line retailers found loopholes to avoid it. Additionally, most consumers are not aware that every time they don’t pay a sales tax for on-line purchases, they create a tax liability for themselves.
During the 88th General Assembly in Arkansas, the business community rallied support for legislation to address these issues while many anti-tax advocates opposed it for fear it created a tax increase. The issue was debated and defined well before a bill was even filed.
Impact Management Group was hired by the world’s largest retailer to help pass legislation that would provide fairness to all retailers while protecting consumers from unknown tax liabilities. The Main Street Fairness legislation was created to accomplish these objectives and was signed into law on April 1, 2011.