Members of the Arkadelphia City Board of Directors learned Tuesday that Arkadelphia is one of 82 cities in the state that has passed a resolution endorsing the Marketplace Fairness Act.

Members of the Arkadelphia City Board of Directors learned Tuesday that Arkadelphia is one of 82 cities in the state that has passed a resolution endorsing the Marketplace Fairness Act.
According to Arkadelphia Mayor James Calhoun, the resolution calls for the governor to call a special session that will support local businesses by giving them a fair chance to compete.
“The Marketplace Fairness Act is really a Pro-Business Act for our businesses. It really tells our local businessmen that we are there for them,” said Calhoun.
Currently, there is nothing in place to enforce the collection of sales tax on online purchases. By passing the Act, Calhoun said it would eliminate any loopholes and would increase the chances of communities receiving their sales tax revenue.
“If you purchase something online, and if they have a location in Arkansas, then you have to pay sales tax. If a company does not have an Arkansas presence, they don’t have to charge sales tax,” Calhoun said.
According to Calhoun, Amazon recently started charging sales tax on selected items.
State law requires those who purchase items online who do not pay the sales tax at the time of purchase to report it on their state income tax return.
Last year, approximately 70 Arkansans out of a population of approximately three million reported the amount of money spent for online purchases on their tax returns.
The Marketplace Fairness Act is not a new tax as Arkansas residents are required to report the amount of money purchased for online items annually.
Other items addressed:
• The board had the reading of an ordinance regarding the Henderson State University Federal Credit Unit Rezoning.
The Arkadelphia Planning Commission recently presented a recommendation to the board to pass an ordinance to clear up the zoning on two lots on Pine Street which will be redeveloped for the future HSU Federal Credit Union.
• Directors had the third and final reading of a five mill tax ordinance.
• Brinkley reported that the city terminated the contract with Garver Engineers as the airport engineers.
“We are currently in the process of evaluating new RFQ’s with the Airport Committee and a recommendation will be forthcoming,” said Arkadelphia City Manager Gary Brinkley.
According to Brinkley, the city has a window of time for this transaction to occur.
“We are still in line for our runway rehab in 2019 as previously programmed,” Brinkley said.