HomeMy WebLinkAboutRES.1568.05-01-2000BILL NO. 2000-123 RESOLUTION NO. J��p
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CAPE GIRARDEAU, MISSOURI, IN SUPPORT OF
DELAYING CONGRESSIONAL ACTION ON THE INTERNET
TAX MORATORIUM
WHEREAS, out-of-state remote sellers who conduct sales via
the Internet, mail order, and phone are not required by law to
collect existing sales and use taxes imposed by state and local
governments; and
WHEREAS, the primary barrier to collecting taxes on remote
sales is the Supreme Court's ruling in Quill V. North Dakota
which defers to Congress to authorize states to require remote
sellers to collect taxes in a manner that does not unduly burden
Interstate commerce; and
WHEREAS, state and local governments are working together to
implement a streamlined sales tax system that would simplify
definitions, tax rates and tax bases and use 21St Century
technology in the collection process; and
WHEREAS, current laws create a competitive disadvantage and
great inequities between merchants who sell from traditional
"brick -and -mortar" establishments and those who sell from
electronic stores; and
WHEREAS, increasing sales on the Internet, and the resulting
erosion of sales and use tax revenues, will limit the ability of
states and local governments and school districts to finance
essential public services such as police, fire, emergency medical
service, education, social services, infrastructure development,
and healthcare; and
WHEREAS, a recent University of Tennessee study estimates
that state sales tax revenue losses in 2003 will exceed $10
billion; and
WHEREAS, the Advisory Commission on Electronic Commerce
failed to reach a legally required consensus on fair and
equitable treatment of both remote sellers and "Main Street"
retailers and also proposed that Congress preempt state and local
sovereignty guaranteed by the U. S. Constitution:
NOW, THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
CAPE GIRARDEAU, MISSOURI, AS FOLLOWS:
SECTION 1. The City of Cape Girardeau, Missouri, supports
simplification of state and local sales taxes, and urges states
to move expeditiously to develop and approve model simplification
legislation; and
SECTION 2. Congress should not extend or expand the current
moratorium until its expiration in October 2001; and
SECTION 3. If state and local governments choose to
negotiate a brief extension of the existing moratorium as part of
a broader bill, such an extension:
(a) Should only be effective for a short period of time (no
more than two years); and
(b) Must be linked to states' successfully implementing
sales tax simplification, which would trigger
Congressional authorization of expanded duty to collect
use taxes on remote sales.
PASSED AND ADOPTED THIS I DAY OF , 2000.
A. M. Spradling, III Lifyor
ATTEST:
Gayle L. Conrad, City Clerk