2014-06 Faulkner County Business Journal

JUNE 2014

Ready for business The Crain Automotive Team is wrapping up construction on its second dealership in Conway. Crain Kia is located on South Amity Road and will open for business on Wednesday, June 18. Full story, Page 4.

2D — Sunday, June 15, 2014

Faulkner County Business Journal

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‘Be Vocal Buy Local’ encourages consumers to shop locally The Conway Area Chamber of Commerce has launched a citywide initiative called “Be Vocal Buy Local” to encourage residents to do business in Conway.

The campaign outlines three reasons why it is important to buy locally. First, sales taxes from purchases made in Conway support its city services, such as police and fire departments; parks; and streets. Second, patronizing local businesses keeps them in operation and retains jobs.

Finally, local, independent shops are what make Conway distinct and vibrant.

President and CEO Brad Lacy said the initiative is something the Chamber has wanted to do for a while. The purpose, he explained, is to make people aware that they do not have to leave Conway to get what they want or need.

“The heart of Be Vocal Buy Local is to create outspoken advocates for our community,” he said. “When we keep our money here at home, we’re only helping ourselves.”

The first phase of Be Vocal Buy Local was introduced in April. Through “Staff Picks,” Chamber employees share on social media some of their favorite places to do business in Conway.

Be Vocal Buy Local was unveiled in its entirety at the Chamber’s June CEO Luncheon. The website, BeVocalBuyLocal.org, features videoed and written stories from local business owners and an opportunity for other business owners to tell their story.

The website includes a resources page where business owners can download stickers, table tents, personalized posters and a T-shirt order form. Business owners and company representatives can also get up to three full-color

posters from the Conway Area Chamber of Commerce during regular business hours.

Business owners can take the Be Vocal Buy Local message online by embedding a badge on their company’s website and using a provided template for social media activity. Chamber-member businesses can upload coupons to the Chamber website, which links to BeVocalBuyLocal.org.

“We want people to help us spread the word so that everyone in the community can understand how important it is to make local purchases and continue to build the type of city we want to live in,” Lacy said.

“When you choose to shop locally, you choose to invest in your community.”

Registration open for Chamber bowling event Managers who are looking to provide team building or reward opportunities for their employees may find that Bowling for Business is right up their alley.

Bowling for Business encourages interaction among employees in a fun and laidback environment and promotes friendly competition among participating businesses. The event, hosted by the Conway Area Chamber of Commerce, will take place Friday, June 27, at Conway Family Bowl. Crafton Tull is the presenting sponsor.

Bowling for Business offers morning and afternoon

“flights” separated by lunch.

The morning flight is from 10 a.m. until noon, and the afternoon flight is from 1-3 p.m.

Lunch is from noon to 1 p.m.

Lunch is included for all participants, giving more than 200 professionals the chance to network while enjoying traditional bowling alley fare.

Smith Ford, Southwestern Energy Company and KimberlyClark are the lunch sponsors.

Five-person team sponsorships are still available for $200. To participate in Bowling for Business on June 27, register online at ConwayChamber.org or call 501-3277788.

Deadline for FEMA assistance, SBA applications is June 30 Arkansas residents impacted by the flooding, severe storms and tornadoes of April 27 have until June 30 to register for individual disaster assistance through FEMA. Arkansas businesses are encouraged to ensure that their employees who were living in Faulkner, Pulaski, Randolph and White counties and impacted by these storms know of the deadline to

register for assistance.

Survivors can continue to register for FEMA individual assistance online until June 30 at DisasterAssistance.gov or via a Web-enabled device at m.FEMA.gov. They may also call 800-621-3362 or (TTY) 800-462-7585. The toll-free telephone numbers will operate from 7 a.m. until 10 p.m. seven days a week.

Disaster assistance

can include money for rental assistance, essential home repairs, personal property losses and other serious disaster-related needs not covered by insurance. So far, about 1,385 Arkansans have registered for assistance, and more than $2.5 million in assistance has been approved, according to the Federal Emergency Management Agency.

The June 30 deadline also applies for homeowner, renter and business applications with the Small Business Administration (SBA) for disaster loan assistance, another important step in the disaster relief process to ensure survivors obtain all relief they are eligible for.

For businesses, an SBA disaster loan represents the best opportuni-

ty for disaster assistance.

There is no obligation to accept an SBA disaster home loan even after applying. If survivors are denied an SBA home loan, they might be eligible to receive other assistance from FEMA, such as money to replace personal property.

Of note, apart from the June 30 SBA deadline for property damage, businesses also have un-

til Jan. 29, 2015, to apply for SBA economic injury disaster loans. All homeowners, renters and businesses are encouraged to register with FEMA and SBA to ensure eligibility for future forms of aid.

For additional information on the SBA, call 800-659-2955 or TTY 800-877-8339, email DisasterCustomerService@ SBA.gov, or visit SBA. gov.

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EDITORIAL

P

Sunday, June 15, 2014 — 3D

Faulkner County Business Journal

At least they’re talking

erhaps the worst-kept secret in Conway for the last decade was that a number of downtown business owners were quietly frustrated by the growing scale and impact of Toad Suck Daze.

Earlier this month the grumbling became fully vocalized as more than twenty downtown business owners signed a petition calling for Toad Suck Daze to be moved out of downtown.

A combination of record-setting crowds and some new faces downtown probably deserve most of the credit for getting the issue off the fence. Regardless, it’s a good thing. There has

been more productive dialogue between festival organizers and downtown merchants this month than there has been in the last ten years. That’s not to say all of the talk has been productive.

But that’s the nature of conflict resolution.

Some bona-fide original ideas have come from this conversation: Migrate some of the festival to Markham Street to jump-start or coincide with its redevelopment. Change the “flavor” and scale of the entertainment to attract crowds that are more likely to shop downtown. Take advantage of some space at the now less-occupied courthouse and

move some of the “kiddie rides” to the kids area already established there. Establish Oak Street as a “retail corridor” and set-up in a way that facilitates shopping.

Some or all of these options could be put in place quickly. They would also offer measurable relief to downtown merchants and those wanting to shop downtown. Just ideas. But they are a sign of progress. And we shouldn’t discount the value of modest progress when we’re talking about an issue with as many moving parts as Toad Suck Daze.

However, there is one audience that hasn’t been officially

engaged yet—the festival attendee. Toad Suck Daze holds a special place in the hearts of many Faulkner County residents (and beyond). It’s difficult to imagine a forum to have productive dialogue with this equally important but more unwieldy constituency. It’s hard to gather or even determine the prevailing preferences of 150,000 people. But that’s no less reason to do it.

Whether you own a business downtown, organize the festival or just attend you’ve got a right to join the conversation. With that right comes the responsibility to make sure the dialogue is respectful and productive.

Ten Conway public schools honored with reward funds Conway one of two districts with 10 ‘reward schools’

Ten schools in the Conway Public School District received financial incentives for being high-performing public schools in the state of Arkansas.

The Arkansas School Recognition and Reward Program recognizes the top 20 percent of schools based on academic achievement, academic growth and graduation rates. In the 2013-14 school year, the program recognized 206 public schools as highperforming schools.

With 10 schools earning recognition, Conway Public Schools ties Bentonville Public Schools as having the most reward schools in Arkansas.

Schools in the top

20 percent this year received $45.35 per student. Schools that were in the top 10 percent received $90.70 per student.

The Top 10% Reward Schools include Carl Stuart Middle ($65,316.48), Carolyn Lewis Elementary ($39,619.08), Ellen Smith Elementary ($44,823.78) and Jim Stone Elementary ($41,377.14).

The Top 20% Reward Schools include Bob Courtway Middle ($21,818.47), Conway Jr. High ($64,607.27), Julia Lee Moore Elementary ($14,651.15), Raymond and Phyllis Simon Middle ($19,633.93), Ruth Doyle Middle ($24,661.09) and Woodrow Cummins Elemen-

tary ($21,944.88).

To honor these schools, Brad Lacy, president and CEO of the Conway Area Chamber of Commerce, Dr. Greg Murry, superintendent of Conway Public Schools, Sen. Jason Rapert and Rep. David Meeks presented ceremonial checks to the principals of each reward school. The presentation took place at the Conway Area Chamber of Commerce.

“Academic achievement and growth not only mean students are getting a quality education; they resulted in additional funds for highperforming schools,” said Dr. Tom Kimbrell, commissioner of the Arkansas Department of Education. “The funds will

allow schools to provide additional resources and tools to help students become ready for college and careers.”

Schools receiving recognition funds established a committee to determine the best use of the funds.

The committee included the principal, a teacher elected by the faculty and a parent representative selected by the local Parent Teacher Association or another parental involvement group. Schools may use the funds for faculty and staff bonuses, educational equipment and materials or personnel to assist with improving or maintaining student performance.

A total of $7 million

from the governor’s allocation of the General Improvement Fund was designated for the Arkansas School Recognition and Reward Program this school year. The Arkansas Legislature supported Gov. Mike Beebe’s recommendation to fund the program with $7 million from general revenue in the 2014-15 school year.

Originally passed as part of 2004’s Act 35,

school rewards had never been funded until this year. Act 1429 of 2013 revised the program, and Act 703 of 2013 appropriated funding. Arkansas Learns, the private sector alliance for excellence in public education, championed annual funding in both the 89th General Assembly and the recent fiscal session.

To learn more, visit ArkansasLearns.org.

4D — Sunday, June 15, 2014

Faulkner County Business Journal

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COVER STORY

Crain Kia dealership opens June 18

The Crain Automotive Team is wrapping up construction on its second dealership in Conway. Crain Kia is located on South Amity Road and will open for business on Wednesday, June 18.

Jay Myers will be the general manager of Conway’s new Kia store. Myers is also the general manager of Crain Buick GMC, located on North Museum Road in Conway.

“We are excited about the new facility,” Myers said. “It will be a full-service dealership. The service that you’ve come to expect from Crain Buick GMC will be the same at Crain Kia. Our technicians are certified not only with the manufacturer’s vehicles but with other makes and models as well.”

The state-of-the-art facility spans 28,000 square feet and will carry a full selection of Kia vehicles – from compact cars to fullsize SUVs. “Not only does Kia back every vehicle with a 10-year, 100,000mile warranty, they are also some of the safest and most fuel-efficient vehicles on the road,” Myers said. “Most of the vehicles have a five-star safety rating and have been awarded with the IIHS [Insurance Institute for Highway Safety] top safety rating. Seven of their models get over 30 mpg.”

The Kia dealership will offer the Crain Automotive Team Commitment: a 100-year, 100,000-mile

‘The product is fantastic; it’s safe, offers the latest in technology, and is competitively priced.

We look forward to the continued growth in the Conway area.’

— Crain Automotive President Chris Crain

warranty on every new and used vehicle sold; a 100-hour “love it or leave it” exchange policy; and a 100 percent low price guarantee.

Crain broke ground on the new dealership in August 2013. It is the second Kia dealership for the company; the first is located in North Little Rock, which opened in 2002.

“We believe in the Kia brand and their vision,” said Crain Automotive President Chris Crain.

“The product is fantastic; it’s safe, offers the latest in technology, and is competitively priced. We look forward to continued growth in the Conway area.”

Crain Buick GMC is one of the most successful Crain franchises and is among the top 12 Buick GMC dealers in the nation. Jay Myers hopes to continue this success with Crain Kia.

“One of the things we pride ourselves on is that we don’t just work in Conway and Faulkner County,” he said. “This is home.

Our kids go to school here and play little league and soccer here. We invest in this community because it’s important to us.

“So come see us! The facility is impressive, and Kia makes a great product.”

About Crain Automotive The Crain Companies began as “Paul Crain Wholesale” in Searcy, Arkansas, in the early 1950s. Three generations of Crains joined the family business after graduation from the University of Arkansas, including current president Chris Crain in 1994.

“Mr. Paul,” Larry Crain Sr.’s father, started out “peddling” tire repair items, health and beauty aids, fishing tackle, and other general mer-

chandise out of the trunk of his car. His customers were primarily smalltown “mom and pop” grocery stores and service stations.

Crain’s business grew first into a van and later to a small “warehouse” (also his garage). He associated with other peddlers, namely Hartsell Capps and Wendal Pettus. The seat-of-the-pants operation grew up to the time Larry Crain Sr. came on scene in 1966. Larry had graduated from the University of Arkansas with an accounting degree, passed the CPA exam, and worked three years for the Peat Marwick Mitchell accounting firm. He then decided he wanted to go into business for himself.

In 1966, the company – then known as Crain Sales Company – built a sprawling, 10,000square-feet headquarters on Highway 36 in Searcy,

which in an expanded form (50,000-square-feet) served as the company’s headquarters and main distribution facility until July 1992 when the company moved to the new office and warehouse in North Little Rock.

Beginning in the early 1980s, the company saw an industry trend and customer need for freestanding auto stores and opened its first KarPro auto parts store in Searcy. During the 1980s and up until 2000, Crain expanded by acquisition and new locations to more than 16 locations. In September 2000, a majority of the automotive parts distribution facility was merged into the O’Reilly Auto Parts operation.

In 1990, The Crain Companies purchased a Ford Dealership in Benton, Arkansas, and renamed it Freeway Ford Lincoln Mercury. In 1992, a sister dealership in Memphis was purchased and operated as Midway Ford. In 1999, Crain acquired the Landers North Facility from United Auto Group and was award-

ed the Kia franchise.

The Buick GMC dealership in Conway was purchased from Jodie Brown 11 years ago.

Later that year Crain acquired Service Chevrolet Oldsmobile from Cliff Peck, and Crain sold Midway Ford in Memphis to United Auto Group to focus on growing the central Arkansas market.

Crain began operating all dealerships under the Crain Automotive Team umbrella as Crain dealerships. Throughout the next decade Crain further expanded the dealership operations to include multiple dealership locations and an RV store.

Led by company President Chris Crain, in January of this year, the Crain Team acquired two Hyundai dealerships in Northwest Arkansas marking their first venture in that part of the state.

The company purchased a Buick GMC dealership in Springdale in October 2013. Many stores have been recently relocated or renovated to meet the changing needs of its valued customers.

6D — Sunday, June 15, 2014

Faulkner County Business Journal

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Fast-growing population fueled by strong economy A fast-growing population and strong economy have long been characteristics of Conway, Arkansas. Recent reports from the U.S. Census Bureau and POLICOM, an organization that studies the dynamics of local economies, support these attributes of the city of 60,000.

According to the U.S. Census Bureau, Conway is the fastest-growing big city in Arkansas.

The Census defines big cities as having a population of 50,000 or more.

Brad Lacy, president and CEO of the Conway Area Chamber of Commerce,

said this growth is driven by a strong economy.

“Conway and central Arkansas continue to see national recognition for the strength of our local economy,” Lacy said. “A diversity of jobs in education, health care, manufacturing, technology, energy, government, and an emerging startup community combine to provide our residents with a variety of employment options.

“The availability of these jobs is the key driver in our continued residential growth – a trend that has occurred for several decades.”

Conway’s population grew at a rate of 8.3 percent from 2010-2013.

The Washington Post pulled the data from the census and compiled a map showing the fastestgrowing large city in every state over this threeyear period. Author Niraj Chokshi wrote that the longer time span “offers a more telling look at places that are experiencing sustained growth, rather than an unusually strong year.”

Arkansas’s fastestgrowing city makes up the 28th strongest metro area in the country.

With 381 Metropolitan

40

40

Statistical Areas in the U.S., the Little Rock – North Little Rock – Conway MSA is in the top 10 percent. The ranking comes from POLICOM’s 2014 economic strength report, which measures the economic conditions of the United States’ metropolitan and micropolitan statistical areas.

According to POLICOM, the highest-ranked areas have experienced “rapid, consistent growth in both size and quality for an extended period of time.” POLICOM has created economic strength rankings for all Metropolitan Statistical

Areas since 1996 and all Micropolitan Statistical Areas since they were established in 2002.

The report defines economic strength as “the long-term tendency for an area to consistently grow in both size and quality.”

To measure how the economy in each area has behaved, POLICOM used three groups of sectors to determine economic strength: 1. Group 1 sectors reflect the overall growth in size and quality. The quality of an economy is based on what people earn, which influences a

population’s standard of living.

2. Group 2 sectors reflect how the economy behaves. It takes into account the growth or decline of the retail and construction industries, which are typically reactive to the condition of the economy.

3. Group 3 sectors examine growth in Welfare and Medicaid, which reflects a poor economy.

Read more about POLICOM’s methodology and view the entire list of economic strength rankings over the last decade at POLICOM. com.

Old Morrilton Hwy

Gentry Lake

TOP 5 RESIDENTIAL HOME SALES

Robins Lake

Days La

64

Meadowlake Rd

64

Cadron Valley Country Club 319

5430 Lost Canyon

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Moun

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Donaghey Ave

266

65 40

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60

St

Oak St

Conway Laurel Park

Caldwell St

60

Oak

Conway Country Club

St60

$127.18 per square foot; built in 2014.

ride

Hark

Tyle

1025 Burrow Ave. Hendrix College

Salem Rd

in The Reserve at Centennial Subdivision; 3,900 square feet;

855 Burrow Ave.

Gatlin Park

Lake Carol-dan

1. 5430 Lost Canyon: $496,000; 4 bed, 4 bath, 4 half bath;

64

2910 Baxter

Centennial Valley Golf Club

yli

Sk

65

Donaghey Ave

Gleason

65

r

D ne

E Oak St

60

65

Fifth Avenue Park

2. 13 Richland Hills Drive: 362,500; 4 bed, 3 bath, 1 half bath; in Richland Hills Subdivision; 4,139 square feet; $87.58 per square foot; built in 1991.

Airport Park Central Baptist College

Dennis F Cantrell Field

60

Highway 60 W

3. 855 Burrow Ave.: $353,200 3 bed, 2 bath; in The Village at

Oak Grove Cemetery

S Salem Rd

60

Hendrix Subdivision; 1,941 square feet; $181.97 per square foot;

University Of Central Arkansas

286 286

built in 2014.

t er S

d arkri

Dave Ward Dr

SH

286

365

4. 1025 Burrow Ave.: $343,910; 3 bed, 2 bath, 1 half bath; in

Brumley

65 S

Ar-3 365 286

13 Richland Hills

The Village at Hendrix Subdivision; 1,745 square feet; $197.08 per square foot; built in 2014.

5. 2910 Baxter: $282,000; 5 bed, 3 bath, 1 half bath; in Royal Oaks Subdivision; 3,389 square feet; $83.21 per square foot; built in 1994.

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EconomicGlance Unemployment Rate

April Seasonally Adjusted US............................................. 6.3% Arkansas................................... 6.6% Not Seasonally Adjusted US............................................. 5.9% Arkansas................................... 6.1% Faulkner County ...................... 5.8% Conway...................................... 5.8%

Sales Tax Collections

Conway* March 2014.............................. $2,122,659 2013.............................. $1,988,118 Percent Change -6.8% Year to Date (March) 2014.............................. $5,453,607 2013.............................. $5,538,107 Percent Change -1.5% Annual 2013............................$23,235,891 2012............................$22,944,163 Percent Change 1.3% *Tax Rate 1.75% Faulkner County* March 2014................................. $791,162 2013................................. $728,079 Percent Change 8.7% Year to Date (March) 2014.............................. $2,033,913 2013.............................. $2,036,049 Percent Change -0.1% Annual 2013.............................. $8,588,835 2012.............................. $8,465,686 Percent Change 1.5% *Tax Rate 0.5%

Restaurant Sales*

April 2014............................$15,256,678 2013............................$14,419,219 Percent Change 5.8% Year to Date (April) 2014............................$56,975,610 2013............................$54,620,119 Percent Change % 4.3 Annual Sales 2013..........................$164,989,586 2012..........................$161,318,563 Percent Change 2.3% *Including mixed drink sales

Hotel Sales

April 2014.............................. $1,766,712 2013.............................. $2,085,020 Percent Change -15.3% Year to Date (April) 2014.............................. $5,964,719 2013.............................. $5,914,218 Percent Change 0.9% Annual Sales 2013............................$18,556,911 2012............................$18,683,676 Percent Change -0.7%

Conway Building Permits

Single Family Homes Year to Date (May) 2014.................................49 Permits 2013.................................58 Permits Percent Change -15.5% Annual 2013.............................. 147 Permits 2012.............................. 186 Permits

2011.............................. 153 Permits Percent Change 2013-2012 -21.0% Average Construction Cost* Annual 2013................................. $228,275 2012................................. $207,537 2011................................ $204,387 Percent Change 2013-2012 10.0% *Not including land or lot improvements Average Square Footage* Annual 2013........................................3,002 2012........................................2,910 2011........................................2,814 Percent Change 2013-2012 3.2% Average Construction Cost Per Square Foot* Annual 2013......................................$76.04 2012......................................$71.33 2011......................................$72.64 Percent Change 8i2013-2012 6.6%% * Total under roof

Lottery Sales

Faulkner County May 2014.............................. $1,169,904 2013.............................. $1,569,620 Percent Change -25.5% Year to Date (May) 2014.............................. $6,416,438 2013.............................. $7,586,800 Percent Change -%15.4 Annual 2013............................$17,038,277 2012............................$16,943,909 Percent Change .06% Total State May 2014............................$33,516,638 2013............................$42,313,617 Percent Change -20.8% Year to Date (May) 2014..........................$181,399,406 2013..........................$202,126,566 Percent Change -10.3% Annual 2013..........................$432,932,799 2012 ........................$452,245,215 Percent Change -4.3%

Natural Gas

Severance Tax Distribution Conway Year to Date (May) 2014................................. $104,893 2013................................... $84,144 Percent Change 24.7% Annual 2013................................. $276,523 2012................................. $162,457 Percent Change 70.2% Faulkner County Year to Date (May) 2014................................... $85,358 2013................................... $68,267 Percent Change 25.0% Annual 2013................................. $224,455 2012................................. $131,418 Percent Change 70.8%

Information provided by pulseofconway.com

Sunday, June 15, 2014 — 7D

Faulkner County Business Journal

Sales tax revenue: flat, flat, flat

By Roger Lewis

Government services such as streets and roads, police protection, fire departments and court systems are paid for in large part by sales taxes. Over the past two years, sales tax revenue has not grown to match the increased demand for services.

In fact, for the first three months of 2014, sales tax revenue for Conway actually declined by 1.5 percent.

Faulkner County and other municipalities in the county are also dependent on sales taxes to fund their budgets. For the first quarter in 2015, sales tax revenue for the county was down 0.1 percent.

The Arkansas sales tax rate is 6.5 percent.

Conway adds 1.75 percent, and Faulkner County adds 0.5 percent bringing the total for purchases in Conway to 8.75 percent. Sales tax rates for Arkansas citizens are among the highest in the nation.

Nearly all of the incorporated municipalities in Faulkner County have local sales tax rates that vary from 1-2 percent.

Of Conway’s 1.75 percent, 1 percent goes to the general fund for current operations and 0.75 percent to retiring bonds and capital improvements. The county’s 0.5 percent is split between roads and the judicial system.

Conway’s 1 percent sales tax generates ap-

proximately $13 million per year, which provides almost half (45 percent) of the city’s operating budget. The county’s half percent generates approximately $8 million per year, which covers 22 percent of its budget.

Flat receipts - the cause

Why are sales tax revenues not growing, which is not just a Conway phenomenon but a national problem as well? Business seems to be good, the work force has expanded, unemployment is lower, automobile and restaurant sales are up.

However, consumers are turning more and more to the Internet (e-commerce) to purchase durable goods.

The net offers convenience, a wider selection of goods and no sales taxes on many purchases. It is estimated that in 2012, 6 percent of all retail sales were online ($225 billion). This is projected to increase by 2017 to 10.7 percent or $370 billion.

Vendors are not required to collect sales taxes on Internet sales unless the vendor has a physical presence in the state. If you buy online from Walmart, Sears, Best Buy or Barnes and Noble, for example, you will be charged sales tax because they have brick and mortar stores in Arkansas or a presence in some way. But if you buy from Amazon, the largest online vendor in the world, or other on-

line vendors that have no presence in Arkansas, sales taxes are not collected.

Residents are supposed to voluntarily pay sales tax on online purchases, but few do. Public institutions and businesses are audited, and they do pay sales taxes on these purchases.

Amazon reported that its customers ordered 37 million items (428 items per second for 24 hours) on Cyber Monday, the Monday after Thanksgiving, the busiest ecommerce shopping day of the year. That figure is a healthy 39 percent higher than last year’s peak day.

Holiday sales between Thanksgiving and the end of the year account for 20 percent of the retail industry’s annual sales on average. Analysts who track Christmas holiday sales state that 26 percent of 2012 sales were online.

For 2013, the projected percentage is 35.

The solution

Starting in 1992, a series of lawsuits led to The Internet Tax Freedom Act in 1998. (Initially the act banned taxing Internet access and Internet-only taxes — but a series of court cases extended it to all Internet purchases for vendors with no presence in the state of the sale origin.)

In November 2014, the Internet Tax Freedom Act expires. There is strong sentiment not to extend this act; but not

extending the act does not solve the problem of how states will collect the tax, particularly at the local level.

Arkansas U.S. Representative Steve Womack introduced the Market Place Fairness Act of 2013 that grants states the authority to compel online and catalog retailers to collect sales tax at the time of a transaction.

However, there is a caveat: States are only granted this authority after they have simplified their sales tax laws so that vendors do not have to collect a different rate for each location in the state.

There are several options for states to accomplish this. This Market Place Fairness Act has bipartisan support and the support of major retailers such as Walmart, Best Buy and Barnes and Noble.

The bill has passed the Senate but languishes in the House of Representatives. Dr. Dean Kumpuris, one of Little Rock’s city directors, had an excellent editorial piece on this issue in the May 29, 2014 Arkansas Democrat Gazette. I highly recommend this article.

You can obtain sales tax data for all incorporated cities in Faulkner County by going to the Pulse of Conway website (www.pulseofconway.com).

I thank my friend Chris Spatz for editing and helping me with this article.