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