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HomeMy WebLinkAboutR00-103Sales Tax — Internet Resolution No. R00-103 A Resolution of the City of Plainview affirming support for neutral tax treatment of internet purchases; Defining Opposition to the Internet Tax Freedom Act; And establishing an effective date. Whereas, state and local governments rely on sales and use tax revenues to pay for public services related to public safety, education, infrastructure maintenance, social programs and other qualify of life services; and Whereas, sales tax comprises nearly half of the tax revenues collected by states and distributed to local governments; and Whereas, state and local governments have experienced difficulty in collecting sales and use tax on purchases made from out-of-state businesses, known as remote sellers; and Whereas, the growth of the Internet has increased the ease with which consumers can engage in remote sales; and Whereas, between 1997 and 1998 retailers selling on the Internet tripled from 12% to 39%; and Whereas, 93.5% of eCommerce transactions are expected to come from traditional business and retail sources by 2002; and Whereas, the U.S. Congress enacted the Internet Tax Freedom Act of 1998 which pre-empts state and local authority by establishing a moratorium on the imposition of eCommerce-related taxation, and created an Advisory Commission on Electronic Commerce charged with making recommendations for future Congressional action; and Whereas, the Internet Tax Freedom Act discriminates against citizens without Internet access because these individuals will continue to be obligated to pay sales tax on purchases from local stores, while consumers with the means to afford the necessary technology for making Internet purchases will not be required to pay sales tax; and Whereas, retailers engaging in eCommerce will continue to experience an unfair competitive advantage over local, "Main Street", or "bricks and mortar" businesses if the Internet Tax Freedom Act is made permanent. Resolution No. R00-103 Page 1 of 2 Whereas, the National Governor's Association estimates that state and local government revenues from sales tax could decrease by as much as 20% by 2003 if the Internet Tax Freedom Act is made permanent; and Whereas, that the Advisory Commission on Electronic Commerce is considering proposals to address eCommerce-related taxation issues, including one jointly submitted by the National Governors' Association, Council of State Governments, National Conference of State Legislatures, National Association of Counties, US Conference of Mayors, National League of Cities, and International City/County Manager's Association entitled "Streamlined Sales Tax System for the 214 Century." NOW, THEREFORE, be it resolved that the City Council of the City of Plainview, hereby opposes attempts by the United States Congress to enact further legislation to extend the moratorium and thereby pre-empt the authority of state and local governments, and further be it RESOLVED, that the City Council of the City of Plainview hereby supports the "Streamlined Sales Tax System for the 21st Century" submitted on behalf of state and local government officials. Passed and approved on February 22, 2000. Karen McBeth, City Secretary APPROVED AS TO FORM: rh/ti Wally Hath, City Attorney Resolution No. R00-103 Page 2 of 2 Sales Tax — Internet Resolution No. ROO-103 A Resolution of the City of Plainview affirming support for neutral tax treatment of internet purchases; Defining Opposition to the Internet Tax Freedom Act; And establishing an effective date. Whereas, state and local governments rely on sales and use tax revenues to pay for public services related to public safety, education, infrastructure maintenance, social programs and other qualify of life services; and Whereas, sales tax comprises nearly half of the tax revenues collected by states and distributed to local governments; and Whereas, state and local governments have experienced difficulty in collecting sales and use tax on purchases made from out-of-state businesses, known as remote sellers; and Whereas, the growth of the Internet has increased the ease with which consumers can engage in remote sales, and Whereas, between 1997 and 1998 retailers selling on the Internet tripled from 12% to 39%; and Whereas, 93.5% of eCommerce transactions are expected to come from traditional business and retail sources by 2002; and Whereas, the U.S. Congress enacted the Internet Tax Freedom Act of 1998 which pre-empts state and local authority by establishing a moratorium on the imposition of eCommerce-related taxation, and created an Advisory Commission on Electronic Commerce charged with making recommendations for future Congressional action; and Whereas, the Internet Tax Freedom Act discriminates against citizens without Internet access because these individuals will continue to be obligated to pay sales tax on purchases from local stores, while consumers with the means to afford the necessary technology for making Internet purchases will not be required to pay sales tax; and Whereas, retailers engaging in eCommerce will continue to experience an unfair competitive advantage over local, "Main Street", or "bricks and mortar" businesses if the Internet Tax Freedom Act is made permanent. Resolution No. R00-103 Page 1 of 2 Whereas, the National Governor's Association estimates that state and local government revenues from sales tax could decrease by as much as 20% by 2003 if the Internet Tax Freedom Act is made permanent; and Whereas, that the Advisory Commission on Electronic Commerce is considering proposals to address eCommerce-related taxation issues, including one jointly submitted by the National Governors' Association, Council of State Governments, National Conference of State Legislatures, National Association of Counties, US Conference of Mayors, National League of Cities, and International City/County Manager's Association entitled "Streamlined Sales Tax System for the 21st Century." NOW, THEREFORE, be it resolved that the City Council of the City of Plainview, hereby opposes attempts by the United States Congress to enact further legislation to extend the moratorium and thereby pre-empt the authority of state and local governments, and further be it RESOLVED, that the City Council of the City of Plainview hereby supports the "Streamlined Sales Tax System for the 21st Century" submitted on behalf of state and local government officials. Passed and approved on February 22, 2000. Karen McBeth, City Secretary APPROVED AS TO FORM: w Wa11yHhtch City Attorney Resolution No. R00-103 Page 2 of 2