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Let's set the record straight. Governors oppose
Internet taxes, new taxes on the Internet, and discriminatory taxes.
Governors support a level playing field that stops discrimination
against American businesses.
What's the Real Issue?
An Overview
How are Special Interest Groups using rhetoric to distort
the truth?
Myths and Facts about sales taxes and the
Internet
How are Governors working to level the playing field?
States Proceeding With Streamlined Sales Tax Project
Facts, Figures, & Related Information
The charts that follow provide additional detail on
state revenues and expenditures and how they could be affected by
offering a tax loophole to e-commerce. Leveling the playing field
for all businesses is the best way to ensure that states will be
able to continue providing vital services to the citizens of their
states.
Sources of State Tax Revenue
States receive
a large percentage of their revenue from state sales taxes.
Percent of State Expenditures by Function
A
breakdown of state expenditures.
Projected Annual Revenue Losses for
States
The University of Tennessee published a
report in early February 2000 that projects how much money states
will lose per year by 2003 if businesses are not required to collect
the use taxes that are owed by purchasers on electronic commerce
Upward revision of expected growth in online sales
Electronic commerce continues to grow faster than
everyone expects.
Sales shift from brick and mortar retail sales to online
sales
Estimates show that sales that would have
otherwise taken place in Main Street stores will now take place over
the Internet.
Uniformity Features of the Streamlined Sales Tax System
for the 21st Century
Status of State Legislation to Enable Multistate
Discussions
What Are People Saying?
During their 2000
winter meeting in Washington, D.C., Feb. 26-29, the nation's
Governors met with President Clinton. One of the topics of
discussion was sales taxes and the Internet. Read the transcript
from Joe Lockhart's press briefing about the meeting.
Testimony by Governor John Engler, Michigan, before the Senate
Budget Committee on Internet Taxation in the New Millennium.
A major study released from CIO Magazine on December 20, 1999,
reveals that consumers and technology executives are indifferent to
the issue of sales taxes on goods and services purchased via the
Internet.
To date, over 150 leading tax experts have signed an "Appeal for
fair and Equal Taxation of Electronic Commerce," which was submitted
to the Advisory Commission on Electronic Commerce. [See also their
press release: Leading Tax Experts Oppose Permanent Exemption for
Electronic Commerce.]
New "The Fight Over Internet Taxation," from Policy.com. See also
Policy.com's December 22nd Daily Briefing, "Will Taxing E-Commerce
be a 'Net Gain?"
South Dakota Gov. William J. Janklow appeared on The NewsHour
with Jim Lehrer on Dec. 27 to debate the issue of online sales. Read
the transcript.
For the latest news stories about this issue and more links to
related sites, visit Yahoo's Internet Taxes and Regulation site. The
E-Fairness Coalition advocates fairness for businesses and
consumers. It supports a level playing field that ensures consumers
are treated fairly regardless of where they choose to shop - in
traditional or online stores. The Advisory Commission on Electronic
Commerce was created by Congress to make recommendations about
electronic commerce and tax policy. | 
