September 26, 2000

The Honorable John McCain
Chairman
Senate Commerce Committee
SR-254 Russell Senate Office Building
Washington, D.C. 20510

Dear Mr. Chairman:

The Governors appreciate your leadership and the progress you have made in working with Senator Dorgan and others to address the equitable tax treatment of retail sales over the internet.

In light of these negotiations, coupled with the fact that the current moratorium does not expire until October of 2001, we agree with your stated position that there is no need for this Congress to extend the moratorium. We appreciate your public statements to that effect and want you to know that we support your position to continue to negotiate so that a comprehensive bill can be enacted in the next Congress.

The Governors believe our country's continued economic prosperity is dependent upon a fair and efficient revenue system, and one protected from multiple or discriminatory taxes. For that reason, we believe it is important for Congress to resolve all the internet tax issues at one time.

We recognize your efforts and look forward to working with you as these negotiations move forward. If we can provide additional information, please have your staff contact Frank Shafroth (202-624-5309).

Sincerely,

c: The Honorable Byron Dorgan
The Honorable Trent Lott
The Honorable Tom Daschle

Signatures on file.