HomeMy WebLinkAbout024021 RES - 04/25/2000E-Commerce Equity Resolution
A RESOLUTION OPPOSING ANY CONGRESSIONAL ACTION TO
EXTEND OR EXPAND THE CURRENT MORATORIUM ON
COLLECTING TAXES ON ELECTRONIC COMMERCE
WHEREAS, the use of new communications technologies, including the Intemet, as a way
to conduct sales of goods and services is accelerating;
WHEREAS, out-of-state vendors who conduct sales via the Intemet, mail order, and phone,
under many circumstances, are not required by law to collect existing sales and use taxes imposed
by state and local governments in which the purchaser resides;
WHEREAS,the primary barrier to collecting taxes on remote sales is the Supreme Court's
ruling in Quill v. North Dakota which defers to Congress, and only Congress, to authorize states to
require remote vendors to collect ta.xes in a manner that does not unduly burden interstate commerce;
WHEREAS, current laws create a competitive disadvantage and great inequities between
merchants who sell from traditional "Brick- and-mortar" establishments and those who sell from
electronic stores;
WHEREAS,this migration of sales to the Intemet is restricting the ability of state and local
governments and school districts to collect taxes which finance essential public services including
bnt not limited to police, fire, emergency medical service, education, social services, infrastructure
development, and local health care;
WHEREAS, the United States Constitution reserves for the states the right to collect and
impose taxes;
WHEREAS, 45 states and the District of Columbia collect over 40 percent of overall
revenue from sales taxes to fund vital public services;
WHEREAS, a recent University of Tennessee study estimates that state sales tax revenue
losses in 2003 will exceed $10 billion;
WHEREAS, the Advisory Commission on Electronic Commerce, established by the Intemet
Tax Freedom Act, failed to address, in a fair and equitable manner, the growing volume of tax-ficee
sales transactions occurring over the Internet, which have put "brick and-mortar" stores at a
competitive disadvantage; and
WHEREAS, the Commission's report to Congress does not effectively address the tax
losses state and local governments will experience if the Intemet becomes a permanently tax-free
retail market.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CORPUS CHRISTI, TEXAS:
SECTION 1. That City of Corpus ChristL Texas opposes any congressional action to
implement the Advisory Commission on Electronic Commerce's report proposals that would
preempt state and local sovereignty, guaranteed by the 10th Amendment of the United States
Constitution.
SECTION 2. That the City of Corpus Christi, Texas supports simplification of state and
local sales taxes, and urges states to move expeditiously to craft and approve model legislation.
SECTION 3. That the City of Corpus ChristL Texas opposes any congressional eftbrts to
expand the current moratorium to cover state and local sales and use taxes.
SECTION 4. That the City of Corpus Christi, Texas opposes any efforts to extend the
current moratorium unless the extension is for two years or less and is directly linked to
congressional authorization to states that simplify their sales and use tax system to collect use tax
on all remote transactions.
SECTION 5. That a copy of this resolution shall be promptly transmitted by the City
Manager or his designee to the Congressional delegation for the City of Corpus Christi.
ATTEST/~~~_
Armando Chapa, City Secretary
Approved this the 2.~ day of ~
James R. Bray, Jr., City Attorney
,2000:
Lisa Aguilar, Ass~omey
CORPUS CHRISTI, TEXAS
The above resolution was passed by the following vote:
Samuel L. Neal, Jr.
Javier D. Colmenero
Melody Cooper
Henry Garrett
Dr. Amold Gonzales
Rex A. Kinnison
Betty Jean Longoria
John Longoria
Mark Scott
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