|
Advisory
Commission on Electronic Commerce (ACEC):
The Internet
Tax Freedom Act established the commission to study the application
of taxes to e-commerce and telecommunications. The commission was
composed of three federal, eight private, eight state and local
government representatives, including Utah Gov. Michael O. Leavitt,
Virginia Gov. James Gilmore, and Washington Gov. Gary Locke. The
commission sent a report to Congress on April 12, 2000, but failed
to reach the required supermajority (two-thirds) to make findings
and make recommendations. The commission refused to accept a
"minority" report from Gov. Leavitt on behalf of state and local
government representatives.
Internet Tax Freedom Act: In addition to
appointing the ACEC, the act imposed a three-year moratorium on new
taxes on Internet access fees (like the one consumers pay to AOL).
It did nothing to affect sales and use taxes. The moratorium expires
October 2001. Nexus: Refers to the physical presence -- such as a
sales force, distribution center, or a warehouse -- a retailer must
have in a consumer's state to be required by that state to collect
sales taxes.
Nexus: Refers to the physical presence?such as a sales force,
distribution center, or a warehouse?a retailer must have in a
consumer?s state to be required by that state to collect sales
taxes.
Quill decision: 1992 U.S. Supreme Court decision
that said states cannot require retailers without a physical
presence in that state to collect sales taxes. In this case, the
consumer still has the legal responsibility to pay the use tax
directly to his or her own state. The case cited Congress' authority
to legislate in this area. Sales tax: A levy placed on a good or
service purchased from a business that has a physical presence in
the same state as the consumer.
Streamlined Sales Tax Project: An effort by
states, with input from local governments and the private sector, to
design, test, and implement a radically simplified sales and use tax
system for the 21st century. The goal of the Project is to
substantially reduce or eliminate the costs and burdens of sales tax
compliance for businesses through a combination of simplified laws
and administrative policies and the implementation of a no-cost
system for retailers.
Use tax: A levy placed on a good or service
purchased outside of the consumer's state. |
.gif)
