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Arkansas sales-tax exemptions to be studied

LITTLE ROCK, Ark. (AP) - An Arkansas lawmaker says the Legislature's tax overhaul task force is looking to determine which of the state's sales-tax exemptions should be kept and which should be abandoned.

The Arkansas Democrat-Gazette reports that PFM Consulting Group presented a report to the task force Tuesday with 7-year-old state estimates of financial impact of the exemptions.

The report says that more than 100 sales-tax exemptions reduced revenue by $1.4 billion in fiscal 2011. It cites estimates from the state Department of Finance and Administration.

The report also says Arkansas collected $3.3 billion in sales tax for fiscal 2017, which ended in June.

Task force co-chairman Republican Sen. Jim Hendren has asked finance department officials to create "a hypothetical" proposal for cutting the top income tax rate if the state had no sales-tax exemptions.

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Information from: Arkansas Democrat-Gazette, http://www.arkansasonline.com