HomeMy WebLinkAboutRESOLUTION - 14-00 - 5/9/2000 - DELAY CONGRESSIONAL ACTIONRESOLUTION NO. 14-00
A RESOLUTION ON DELAYING CONGRESSIONAL ACTION ON 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 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 President and Board of
Trustees of the Village of Elk Grove Village, Counties of Cook and
DuPage, Illinois as follows:
Section 1: That Elk Grove Village supports simplification of
state and local sales taxes, and urges states to move expeditiously to
develop and approve model simplification legislation.
Section 2: That Congress should not extend or expand the current
moratorium until its expiration in October 2001.
Section 3: That if state and local governments choose to
negotiate a brief extension of the existing moratorium as part of a
broader bill, such an extension:
• Should only be effective for a short period of time (no more
than two years); and
• 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.
Section 4: That the Village Clerk is hereby requested to transmit
this Resolution to Congressman Henry J. Hyde, Congressman Philip
M. Crane, U. S. Senator Peter G. Fitzgerald, and U. S. Senator
Richard J. Durbin.
PC
Section 5: That this Resolution shall be in full force and effect
from and after passage and approval according to law.
VOTE: AYES: Trustees: Nancy J. Czarnik, Samuel L. Lissner, James P. Petri,
Chris Prochno
NAYS:
ABSENT: Trustees: Bart K. Dill. Patton L. Feichter
PASSED this 9th day of
APPROVED this 9th day of
ATTEST:
Ann I. Walsh
Village Clerk
Resinternetaxmoratorium.doc
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Craig B. Johnson
Village President
2000.