HomeMy WebLinkAboutRes 00-20 Affirming Support for Neutral Tax Treatment of Internet PurchasesTOWN OF WESTLAKE
RESOLUTION NO. 00-20
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF
WESTLAKE, TEXAS, AFFIRMING SUPPORT FOR NEUTRAL TAX
TREATMENT OF INTERNET PURCHASES.
WHEREAS, state and local governments rely on sales and use tax revenues to
pay for public services related to public safety, education, infrastructure maintenance,
social programs and other quality of life services, and
WHEREAS, sales tax comprises nearly half of the tax revenues collected by
states and distributed to local governments, and
WHEREAS, state and local governments have experienced difficulty in
collecting sales and use tax on purchases made from out-of-state businesses, known as
remote sellers, and
WHEREAS, the growth of the Internet has increased the ease with which
consumers can engage in remote sales, and
WHEREAS, between 1997 and 1998 retailers selling on the Internet tripled from
12% to 39%, and
WHEREAS, 93.5% of eCommerce transactions are expected to come from
traditional business and retail sources by 2002, and
WHEREAS, the US Congress enacted the Internet Tax Freedom Act of 1998
which pre-empts state and local authority by establishing a moratorium on the imposition
of eCommerce-related taxation, and created an Advisory Commission on Electronic
Commerce charged with making recommendations for future Congressional action, and
WHEREAS, the Internet Tax Freedom Act discriminates against citizens
without Internet access because these individuals will continue to be obligated to pay
sales tax on purchases from local stores, while consumers with the means to afford the
necessary technology for making Internet purchases will not be required to pay sales tax,
and
WHEREAS, retailers engaging in eCommerce will continue to experience an
unfair competitive advantage over local, "Main Street", or "bricks and mortar" businesses
if the Internet Tax Freedom Act is made permanent, and
WHEREAS, the National Governor's Association estimates that state and local
government revenues from sales tax could decrease by as much as 20% by 2003 if the
Internet Tax Freedom Act is made permanent, and
WHEREAS, the Advisory Commission on Electronic Commerce is considering
proposals to address eCommerce-related taxation issues, including one jointly submitted
by the National Governors' Association, Council of State Governments, National
Conference of State Legislatures, National Association of Counties, US Conference of
Mayors, National League of Cities, and International City/County Manager's Association
entitled "Streamlined Sales Tax System for the 215` Century".
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS:
SECTION l: That the Board of Aldermen of the Town of Westlake, Texas,
hereby opposes attempts by the United States Congress to enact further legislation to
extend the moratorium and thereby pre-empt the authority of state and local governments.
SECTION 2: That the Board of Aldermen of the Town of Westlake, Texas,
hereby supports the "Streamlined Sales Tax System for the 2151 Century" submitted on
behalf of state and local government officials.
PASSED AND APPROVED ON THIS 8" DAY OF MAY, 2000.
Scott Bradley, Mayor
ATTEST:
ing Crosswy, TowilSecretary Trent O. Petty, Town Manner
APPROVED AS TO FORM: