      |
|
| /A>
This letter was sent to the members of the federal Advisory Commission on Electronic Commerce
June 11, 1999 Dear Commission Member: I write to you as the Chair of the National Conference of State Legislatures Executive Committee Task Force on State and Local Taxation of Telecommunications and Electronic Commerce. As you plan for the first meeting of the federal Advisory Commission on Electronic Commerce in Williamsburg, I would like to inform you of some of the concerns of the members of our Task Force. The NCSL Executive Committee created this Task Force earlier this year in response to the growing challenges associated with taxation of telecommunications and electronic commerce. Its mission is to:
NCSL's Executive Committee felt that it was important to have a body within this organization that could provide advice and assistance on the many important policy decisions before the Commission. After all, any Commission recommendations concerning state sales and use or telecommunications tax policy will require action by state legislatures. By constitution, tax law changes must originate in the legislature. I understand that the Advisory Commission on Electronic Commerce will adopt operating rules and procedures at the Williamsburg meeting on June 21st. At our last Task Force meeting in May, we were briefed by the new Executive Director-designate of the Commission, Heather Rosenker. Mrs. Rosenker discussed some ideas for the Commission’s operating procedures and deliberative process that you may be asked to approve during your inaugural meeting in Williamsburg. The members of NCSL's Task Force would respectfully request that you consider our concerns on some of these proposals. Designation of proxies for members of the Advisory Commission – The Commission’s enabling statute specifically allows the federal representatives to designate proxies but does not address proxies for other Commission members. We urge you not to permit proxies at full Commission meetings for the other public and private sector members. From our experience, the personal interaction among business executives and government leaders is conducive to reasonable discussion, negotiation and compromise. We believe this important opportunity for personal interaction would be lost if proxies attended in place of the appointed Commission members. Staffing and funding – We understand that the lack of an appropriation in the enabling statute makes funding and staffing the Commission a challenging task. While you are allowed to accept gifts and in-kind contributions, we believe that it is very important that the Commission maintain the perception of neutrality. Firms that have a direct stake in the outcome of the Commission’s deliberations should not disproportionately fund the Commission’s activities. The Commission should invite and seek either funding or in-kind contributions from the both the public and private sectors. The National Conference of State Legislatures is willing and able to provide staff assistance to the commission on research, report writing, and drafting. Opportunity for input – We respectfully request the opportunity to present the views of state legislatures before the Commission at one of its public meetings. Sales and use taxes are a critical revenue source for state and local governments that must be preserved if states are to maintain our autonomy in the federal system. We recognize, however, that sales and use tax modernization is necessary to make sales and use taxes work effectively and efficiently in a digital economy. We look forward to your invitation to NCSL and particularly our Task Force to address the members of the Commission at a full Advisory Commission meeting. Subcommittee meetings – Subcommittee meetings should be located in hub cities with convenient national airline access and should be duty noticed and open to public participation and input. On behalf of my colleagues on the Task Force, I thank you for this opportunity to share our views on these issues with you. Sincerely,
Steven Rauschenberger
|
