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Letter to Each Member of the United States Senate Regarding Internet Tax Legislation
July 26, 2000 United States Senate Dear Senator: We write to you on behalf of the National Conference of State Legislatures to respectfully request you refrain from taking any further action this year on extending the moratorium on Internet access taxation, or attempting to address the issue of state and local sales tax collection on electronic commerce transactions. We realize that the time left in the 106th Congress is limited and the issues involved in Internet taxation are complex and controversial. Hasty or premature action by Congress could actually delay efforts by state and local governments to streamline and simplify their own sales and use tax collection systems. As state legislators, we acknowledge that our present state and local sales and use tax collections systems are burdensome and complex. We have worked with our governors to develop the Streamlined Sales and Use Tax Collection System for the 21st Century, which will allow states to reduce or eliminate the costs and burdens of sales tax compliance for all sellers. The key features of the proposal are simplification of sales and use tax laws and administration, the use of technology for calculating, collecting, reporting and/or paying the tax through "certified" tax calculation service providers, and the state assumption of the costs of the system. Participation by remote sellers will be voluntary. As of today, 23 states have formally joined the Streamlined Sales Tax Project either through legislative enactment or by executive order of the governor. The participating states are: Florida, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, West Virginia, Wisconsin and Wyoming. The California Senate has passed the authorization legislation and the State Assembly will consider the legislation next month. These states are engaged in on-going multi-state discussions to develop a more simple, uniform and fair system of state sales and use taxation. Elected state officials have recognized the problem and are working together to develop the solution. States should have the opportunity to simplify their sales and use tax systems without federal interference. Finally, with the number of priority issues still remaining to be considered by the 106th Congress, we would like to remind you that the current moratorium on Internet access taxation does not expire until October 21, 2001, almost fifteen months from now. There will still be sufficient time in the next Congress to extend the moratorium if needed. As we witness the convergence of technologies and the merger of industry giants, what we commonly refer to as "Internet access" may soon cover a number of other technologies and services. By letting the current moratorium run its course, we will have the benefit of seeing just what "Internet access" means in fifteen months and if the Internet industry is still in need of Congressional protection and patronage. On behalf of our colleagues from across the country we appreciate your consideration of our request to refrain from any further action this year on Internet taxation. Sincerely, Senator Steven Rauschenberger, Illinois Representative Matthew Kisber, Tennessee Senator Joanne Emmons, Michigan |
