Arkansas Gov. Mike Beebe signed Senate Bill 738 into law Friday, making Arkansas the fifth state to impose sales tax collection responsibilities on e-tailers working through in-state affiliate websites.
The law requires Internet retailers to collect sales tax from Arkansas customers who were referred by affiliate websites in the state that generate more than $10,000 a year in sales.
The law is expected to go into effect in mid-summer. New York, North Carolina, Rhode Island and Illinois have all passed similar laws and tens other states are considering them. Such laws have been dubbed “Amazon Tax” laws because they target Amazon and other out-of-state e-tailers that don't collect sales tax.
The laws have prompted Amazon and Overstock to cut ties or threaten to cut ties to affiliates in those states.
