HomeMy WebLinkAboutResolution 2000-034
RESOLUTION NO. 2000-034
A RESOLUTION SUPPORTING INTERNET TAXATION FAIRNESS
WHEREAS, the use if new communications technologies, including the Internet,
as a way to conduct the sales of goods and services is accelerating; and,
WHEREAS, out-of-state vendors who conduct sales via the Internet, mail order
and phone under many circumstances are not required by law to collect existing sales
and use taxes imposed by state and local governments in which the purchaser resides;
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, and only
Congress, to authorize states to require remote vendors to collect taxes in a manner
that does not unduly burden interstate commerce; 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, this migration of sales to the Internet is restricting the ability of state
and local governments and school districts to collect taxes which finance essential
public services including but not limited to police, fire, emergency medical service,
education, social services, infrastructure development, and local healthcare; and,
WHEREAS, the United States Constitution reserves for the states the right to
collect and impose taxes; and,
WHEREAS, 45 states and the District of Columbia collect over 40 percent of
overall revenue from sales taxes to fund vital public services; and,
WHEREAS, the City of North Richland Hills collects over 25% of overall revenue
from sales tax to fund public services including the crime control district; and,
WHEREAS, a recent University of Tennessee study estimates that state sales
tax revenue losses in 2003 will exceed $10 billion; and,
WHEREAS, the City of North Richland Hills estimates a loss of just 2% in overall
sales tax revenue would result in a loss of $1 ,331 ,002 per year which is equal to the
entire budget for the Public Library; and,
WHEREAS, the Advisory Commission on Electronic Commerce, established by
the Internet Tax Freedom Act, failed to address, in a fair and equitable manner, the
growing volume of tax-free sales transactions occurring over the Internet, which have
put "brick and mortar" stores at a competitive disadvantage; and,
WHEREAS, the Commission's report to Congress does not effectively address
the tax losses state and local governments will experience if the Internet becomes a
permanently tax-free retail market.
NOW, THEREFORE BE IT RESOLVED by the Mayor and City Council of the
City of North Richland Hills that:
1. The City of North Richland Hills opposes any congressional action to
implement the Advisory Commission on Electronic Commerce's report
proposals that would preempt state and local sovereignty, guaranteed by the
10th amendment of the United States Constitution; and,
2. The City of North Richland Hill supports simplification of state and local taxes,
and urges states to move expeditiously to craft and approve model legislation;
and,
3. The City of North Richland Hills opposes any congressional efforts to expand
the current moratorium to cover state and local sales and use taxes; and,
4. The City of North Richland Hills opposes any efforts to extend the current
moratorium unless the extension is for two years or less and is directly linked
to congressional authorization to states that simplify their sales and use tax
system to collect use tax on all remote transactions.
PASSED AND APPROVED this 8th day of May, 2000.
APPROVED:
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j"patricia Hutson - City Secretary
APPROVED AS TO FORM AND LEGALITY
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Rex Mc~ntire - Attorney for the City