Sales Tax News - June 18, 2018

By Brian Greer on Mon, Jun 18, 2018 @ 11:55 AM

Topics: sales tax news

Arkansas City Wants Hotels.com To Pay Local Sales Taxes

The city of Magnolia joined several other Arkansas cities in a class-action lawsuit initiated by the Pine Bluff Advertising and Promotion Commission.  The lawsuit is against the online hotel and hospitality service reservation company, because hotels.com is not remitting the local sales tax back to the cities.  Magnolia funds their advertising and promotions through sales taxes from hotel rooms.  Tax collected is usually around $6,000 to $9,000 a month.  The Magnolia council voted 7-0 to join the lawsuit, and the city will not have any obligation to pay expenses of the lawsuit. 

Sabetha Sees Sales Tax Increase for May

According to the May County/City Local Sales Tax Distribution Report released by the Kansas Department of Revenue, sales tax receipts in Sabetha are much higher than May of last year.  The city saw a 2.9 percent increase from May 2017 and collected $46,413.46 compared to $37,471.58 from last May.  Sabetha is also up .6 percent on sales tax for the fiscal year to date.  Sales tax distributions in the state of Kansas are also up 4.7 percent on the year. 

Georgia Cuts Sales Tax on Jet Fuel to Help Airlines

Georgia told jet fuel vendors that they shouldn't collect most local sales tax on their products as of July 1.  The move could save Delta Airlines and other airline companies about $20 million a year in jet fuel taxes.  The state will pay local governments the sales tax money that would go towards local-option sales tax projects.  All sales taxes that were approved before December 30, 1987 will still be collected on jet fuel.  Delta said they will now contribute more to schools to help the loss of sales tax funds.  "Delta is making a pledge of voluntary contributions to offset the impact of the revenue loss and ensure the funding of existing education products," said Delta spokesperson Trebor Banstetter.
Brian Greer

Written by Brian Greer