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N EWS RELEASE
Date: April 7, 2000Media Contact: Bill Wyatt, 202-624-8667 / Gene Rose, 303-830-2200 State Legislators Move Ahead With
Failure of Gilmore Commission Puts Spotlight on Legislatures WASHINGTON, D.C. -- More than 18 states have begun the process of simplifying the manner in which sales and use taxes are administered and collected according to the National Conference of State Legislatures (NCSL). Model legislation approved by NCSL's Executive Committee Task Force on State and Local Taxation of Telecommunications and Electronic Commerce would allow states to participate in discussions with other states on developing a voluntary, streamlined, multi-state system for the collection and administration of existing sales and use taxes. "States' action on the model legislation represents the first step towards tax equity and fairness between brick and mortar businesses and Internet retailers," said Tennessee Representative Matt Kisber. "State governments, like everyone else, need to adapt to the rapidly changing, information-age economy." The Advisory Commission on Electronic Commerce which was tasked with making recommendations to Congress on the future of Internet taxation failed to do so due to a lack of support. However, despite a Congressionally-mandated rule that formal recommendations must have the support of two-thirds of the Commission, Commission chairman Governor Jim Gilmore and high-ranking members of the electronic commerce industry bent the rules and are delivering a report to Congress next week. "While Governor Gilmore and his merry band of billionaires were busy developing self-serving tax loopholes to benefit their firms at the expense of their competitors, state legislatures and governors have initiated the process of modernizing our tax systems," said Illinois State Senator Steven Rauschenberger. "The streamlined sales tax discussions will provide states with the opportunity to develop a more simple, uniform and fair system of state sales and use taxation without mandates or interference from the federal government." NCSL's Executive Committee Task has worked for the last year to address how states can modernize their state-local sales and use tax systems to accommodate the rapid changes in technology and the explosion of Internet commerce. The sales and use tax currently generates more than $175 billion for states, almost one-third of state revenues. NCSL is a bipartisan organization that serves the legislators and staffs of the nation's 50 states, its commonwealths and territories and the District of Columbia. NCSL provides research, technical assistance and the opportunity for policymakers to exchange ideas on the most pressing state issues. NCSL also is an effective and respected representative for the interests of state governments before Congress and federal agencies.
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