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HomeMy WebLinkAboutResolutions - R-00-016 - 05/17/2000 - OPPOSE CONGRESSIONAL ACTION TO IMPLEMENT AND PREEMRESOLUTION R-00- 016 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, a recent University of Tennessee study estimates that state sales tax revenue losses in 2003 will exceed $10 billion; and WHEREAS, the Advisory Commission of 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 estate and local governments will experience if the Internet becomes a permanently tax-free retail market. NOW, THEREFORE, BE IT :RESOLVED that the City of McHenry 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 10`h Amendment of the United States Constitution. BE IT FURTHER RESOLVED that the City of McHenry supports simplification of state and local sales taxes, and urges states to move expeditiously to craft and approve model legislation. BE IT FURTHER RESOLVED that the City of McHenry opposes any congressional efforts to expand the current moratorium to cover state and local sales and use taxes. BE IT FURTHER RESOLVED that the City of McHenry 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 sales and use tax system to collect use tax on all remote transactions. PASSED and APPROVED this 17"' day of May, 2000. Mayor Att City Cle