HomeMy WebLinkAboutResolution No. 6356 RESOLUTION NUMBER 6 3 5 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
DOWNEY SUPPORTING THE DELAYING OF CONGRESSIONAL
ACTION ON INTERNET TAX MORATORIUM
THE CITY COUNCIL OF THE CITY OF DOWNEY HEREBY RESOLVES
AS FOLLOWS:
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 Y. 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 21" 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 fmance 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 United States Constitution:
THEREFORE BE IT RESOLVED that the City of Downey supports simplification of state and local
sales taxes, and urges states to move expeditiously to develop and approve model simplification legislation; and
r--� BE IT FURTHER RESOLVED THAT Congress should not extend or expand the current
moratorium until its expiration in October 2001: and
BE IT FURTHER RESOLVED that if state and local governments choose to negotiate a brief
expansion 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 2 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.
The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 9th day of May ,2000.
YOR KEITH MC CARTHY
ATTEST:
,/,.,„/"
i f CLERK, D E. MC DONNELL
RESOLUTION NO. 6356
I, HEREBY CERTIFY that the forgoing Resolution was duly adopted by the City Council of the City
of Downey at a regular meeting thereof, held on the 9t h day of Ma y 2000, by the
following vote, to wit:
AYES: 4 COUNCILMEMBERS Winningham, Lawrence, Perkins, McCarthy
NOES: 0 COUNCILMEMBERS None
ABSENT: 1 COUNCILMEMBERS McCaughan
ABSTAIN 0 COUNCILMEMBERS LMEMB
•
CITY CLERK
H:\FINANCE\LWILLIAM\internet tax.doc
I
I
�1