SPRINGDALE, Ark. (KFTA) — The recently-implemented online sales tax law is paying off for cities in Arkansas. Springdale’s mayor said the new development is bringing in significant revenue for the city.
Fairness plays a big role in the tax, said Doug Sprouse, Springdale’s mayor. In-person shops were previously at a disadvantage, as they were required to pay sales taxes while online sellers across the country didn’t.
The online portion of Springdale’s sales tax doubled in the first month, Sprouse said. Springdale hasn’t increased the tax rate since before Sprouse took office more than a decade ago.
The bump in revenue is going back into the city services, Sprouse said.
“The revenue uptick has been nice, but we’re up in almost every sector,” Sprouse said. “We’ve gotten some real good sales tax numbers in the past several months.”
The money will be invested into new roads. As more people shop online, Sprouse said he expects the city to bring in more revenue each year.