14839 1 RESOLUTION NO. 14,839
2
3 A RESOLUTION TO ENCOURAGE GOVERNOR ASA HUTCHINSON TO
4 CONSIDER A SPECIAL SESSION TO MAKE APPROPRIATE CHANGES
5 TO ARKANSAS STATE LAW SO THAT SALES AND COMPENSATING
6 USE TAXES ON INTERNET SALES MAY BE COLLECTED AND
7 DISTRIBUTED; AND FOR OTHER PURPOSES.
8
9 WHEREAS, prior decisions of the U.S. Supreme Court held that a State requirement to have an out-
10 of-state merchant collect and remit Sales or Compensating Use Tax when the merchant did not have a
11 physical location within the boundaries of a given State was a violation of the Commerce Clause of the
12 U.S. Constitution; and,
13 WHEREAS, these decisions were handed down before the pervasive and aggressive marketing of
14 goods and services through the Internet which, among other things, resulted in an estimated $31 billion
15 dollars in State, County, and local Sales and Compensating Use Taxes being collected by individual
16 governments; and,
17 WHEREAS, the collection and remission by the vendor of Sales and Compensating Use Taxes on
18 Internet sales was recognized on June 21, 2018, by the U.S. Supreme Court in South Dakota v. Wayfair,
19 Inc., as not barred by the U.S. Constitution,and not a violation of the Commerce Clause because of lack of
20 a physical presences within a particular jurisdiction which, in turn, approved the nature of a statutory
21 scheme established by the State of South Dakota; and,
22 WHEREAS, while the State of Arkansas is a participant in the Streamlined Sales and Use Tax
23 Agreement, of the requirements approved by the Wayfair decision,there are other aspects of the decision
24 which should be enacted before the State,County and local governments in Arkansas can be assured of the
25 receipt of these revenues; and,
26 WHEREAS,if a special session of the General Assembly is held this year such legislation could be in
27 place in time to capture the balance of such collections this year; and,
28 WHEREAS, on July 23, 2018, the Judiciary Committee of the U.S. House of Representatives held a
29 hearing on the impact of the Wayfair opinion opened with statements by Committee Chair Bob Goodlatte
30 raising numerous concerns about any potential Federal Legislation and how various issues should be
31 addressed; and,
32 WHEREAS,it should be agreed that the collection of any Sales or Compensative Use Taxes on Internet
33 sales should not attempt retroactive application prior to the adoption by each State of the type of legislation
34 deemed appropriate in the Wayfair opinion;
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1 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
2 OF LITTLE ROCK,ARKANSAS:
3 Section 1. Governor Asa Hutchinson is encouraged to work with State Legislative Leaders and call a
4 special session of the Legislature as quickly as possible to approve any necessary legislation, or
5 amendments,which would permit the State of Arkansas, its counties,and its municipalities,to require out-
6 of-state vendors to collect and remit Sales or Compensating Use Taxes on Internet or other out-of-state
7 sales.
8 Section 2. The Mayor and City Clerk are directed to send a copy of this resolution to the Governor
9 upon its approval.
10 Section 3. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
11 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
12 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and
13 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
14 resolution.
15 Section 4. Repealer. All laws,ordinances,resolutions, or parts of the same,that are inconsistent with
16 the provisions of this resolution, are hereby repealed to the extent of such inconsistency.
17 ADOPTED: August 7,2018
18 A ; . APPROVE
19 IRK
Ai%
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21 Su a L I a , City Clerk Mark Stodola,Mayor
22 APP O ' • S TO LEGAL FORM:
23
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25 Thomas M.Carpenter,Ci Attorne
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