HomeMy WebLinkAbout00-1049 01-11-2000RESOLUTION NO. 00 -1049
A RESOLUTION SUPPORTING THE REASONABLE
APPLICATION OF SALES TAX ON APPLICABLE PRODUCTS
AND SERVICES PURCHASED THROUGH ELECTRONIC
COMMERCE
WHEREAS, state and local governments rely on sales tax revenues to
pay for public services related to public safety, education, infrastructure
maintenance, social programs and other quality 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 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 e- commerce 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 e- commerce 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 e- commerce will experience an unfair
competitive advantage over local, "Main Street" or "bricks and mortar"
businesses if the Internet Tax Freedom Act is made permanent; and
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, the Advisory Commission on Electronic Commerce will
consider proposals to address e- commerce related taxation issues, including one
jointly submitted by the National Governors' Association, Council of State
Governments, National Conference of State Legislators, National Association of
Counties, U.S. 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 BY THE CITY COUNCIL OF THE CITY
OF EULESS, TEXAS:
Section 1. That the Mayor and the City Council of the City of Euless
hereby opposes attempts by the United States Congress to enact further
legislation that might pre -empt the authority of state and local governments; and
further
Section 2. That the Mayor and the City Council of the City of Euless
hereby supports the "Streamlined Sales Tax System for the 21st Century"
submitted on behalf of state, regional, and local government officials.
PASSED AND APPROVED by the City Council of the City of Euless,
Texas, at a regular meeting on the 11th day of January, 2000.
APPROVED:
Mary Li Saleh
Mayor
ATTEST:
Susan Cri!, , C'► C /AAE
City Secret_ ry
Resolution No. 00 -1049, Page 2 4 2