Item D1
R~~-18-2000 13:27
BOCC-R
305 852 7162 P.02
COUNTY, STATF.
RESOLVTION ON DELAYING CONGJU:SSIONAL ACTION ON INTERNET TAX
MORATORIUM
W}-U':I{~AS out-or-state I'emote sellerlS who conduct sales via the lnt'=luet, mail order, 3nd phone
are not requin;d by law to collect existing ~illcs and use taxes impo:!cc! by state and local govemm(..-nts;
and
WHF:REAS the primary barrier to collecting tilXC:; on remote sales is the Suprl;mc court's ruling
in Quill V. North Dakota which defers to Congress to autllorize sates to require remote sellen to collect
taxe:! in it mimm.T that docs not unduly burden Int~TStatc commerce; and
\VHEREAS sUtc and local governments are working together to implement 3 strc3mlincd sales
titX :>ystcm that would simplify definitions, tax rate:! itmllax bases and use 21" Century technology in Ole
collection process; and
WHEREAS CWTcnt laws ercilte a competitive disadvantage and gre<lt inequities between
merchants who sell from traditional "brick- and -mortar" esublishmcnts and those who sell from
electronic stOf'CS; and
WHEREAS increasing sales on the Intcmc:t, and the; resulting erosion of sales :lnd use ta;(
revenues, will limit the ability of states and governments and school districts to finance essential public
services such 3S police, fire, emergency medical service, education, social scrvicc:s, infrastructure
development, and healthcare; and
WHEREAS a recent University ofTcnncllsee study estimateslhat state sales ta:ot revenue los!\es
in 2003 will exceed $.10 billion; and
WHEREAS the Advisory Commission on Electronic Commerce failed to reach a legally
required conSen!lU9 on fair and equitable treatment of both remote sellers and "Main Street" reuilcrs and
also proposed that Congress preempt state and local sovereignty guaranteed by the U. S. Constitution:
THEREFORE BE IT RESOL VED Ihal COWlty suppoa1s simplification of
state and local sales taxes, and urges sUtes to move expeditiously to develop ilnd approve model
simplification legislation; and
BE IT FURTHER RESOL VED that Congre!!!! should not extend or expand the cun'cnt
moratorium until it'! expiration in October 200 I ~ and
BE IT FURTHER RESOJ, VEn that if state and loc..l govcmm~-nls chuose to ncgotiiltc a bricf
extension of Ihe t:xisting moratorium as part of a hroader bill, such an extension:
. Should only be cllccLivc for iI short periud of lime (no more than two yean); and
. Must be linked to !ltate!l'- successfully implementing silles tax simplification, which would
trigF ConS""'slonlll authori7.3tion of expanded duty to collect use taxes on remote Ales.
TOTAL P.02
c2 -j)~