Bill to exempt tax on military benefits amended; digital download tax replaces mobile home tax as pay-for | Arkansas Blog

Wednesday, January 25, 2017

Bill to exempt tax on military benefits amended; digital download tax replaces mobile home tax as pay-for

Posted By on Wed, Jan 25, 2017 at 11:08 AM

As expected, the governor's plan to create a tax exemption for veterans' retirement pay was amended yesterday, with a new pay-for: a tax on digital downloads.

Governor Asa Hutchinson
's original proposal for the $13 million tax cut for veterans and their surviving spouses involved removing exemptions on unemployment compensation and the sales of mobile homes, and increasing the sales tax on candy and soft drinks.

However, removing the sales tax exemption on mobile homes proved politically untenable. Instead, the bill will include a new tax on digital downloads to make up the needed revenue.

"There's been a lot of support for the bill but obviously the manufactured housing gave a lot of people some pause," explained Sen. Jake Files, chair of the Senate Revenue and Tax Committee, on Talk Business over the weekend. So they went looking for a revenue source to keep the overall package revenue neutral, Files said (worth noting that the bill's package still includes $6.3 million giveaway to the soft drink industry via a reduction in the wholesale-level tax on soft drink syrup).

“There’s a carve-out for digital downloads that just deals with CDs, books, and movies — so when you walk into Wal-Mart or Best Buy you’re going to pay tax on those things," Files told Talk Business. "If you download them, you don’t. This just brings equity to those two things, but it should bring the bill in line. And I think once we get this thing fixed next week, I think you’ll see smooth passage.”

I haven't seen any revenue estimates for the digital download tax but presumably it's approximately equivalent to the $2.1 million that would have been raised via ending the sales tax exemption on mobile homes.

From the ArkTimes store

Favorite

Comments (11)

Showing 1-11 of 11

Add a comment

 
Subscribe to this thread:
Showing 1-11 of 11

Add a comment

More by David Ramsey

  • Abuse again at Arkansas juvenile lockup

    A guard was fired after choking a child at the Alexander Juvenile Assessment and Treatment Center. It’s the latest in a long history of mistreatment at the facility.
    • May 26, 2017
  • Health care policy FAQ

    What proposed state and federal changes mean for the future of health care policy in Arkansas.
    • May 25, 2017
  • The health of a hospital

    The Medicaid expansion helped Baxter County Regional Medical Center survive and thrive, but a federal repeal bill threatens to imperil it and its patients.
    • May 25, 2017
  • More »

Readers also liked…

  • Al Gore remembers Dale Bumpers

    Former Vice President Al Gore, a former U.S. Senate colleague of Dale Bumpers, sent a statement on Bumpers' death Friday:
    • Jan 3, 2016
  • Baseball fans have a new place to stay

    If you missed out on Razorback baseball home games this year because you couldn’t find a great place to stay, your problem is now solved: Staybridge Suites of Fayetteville is now fully renovated and located directly across from Baum Stadium, with free parking for hotel guests.
    • May 22, 2017
  • In Little Rock, Marco Rubio sells American exceptionalism

    This is Rubio's axiomatic answer to Donald Trump's insistence that he and he alone will Make America Great Again: America is the greatest, always has been.
    • Feb 22, 2016

Most Shared

Most Recent Comments

  • Re: Tuesday's open line

    • Testimony on how i got my LOAN from fundingloanplc@yahoo.com ... I'm Isabella Tyson from 1910…

    • on August 23, 2017
  • Re: Womack gets questions. He doesn't answer

    • Testimony on how i got my LOAN from fundingloanplc@yahoo.com ... I'm Isabella Tyson from 1910…

    • on August 23, 2017
  • Re: The Medicaid charade explained

    • Testimony on how i got my LOAN from fundingloanplc@yahoo.com ... I'm Isabella Tyson from 1910…

    • on August 23, 2017

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation