2000-280 0
RESOLUTION NO. 2000- 28
A RESOLUTION URGING DELAYING CONGRESSIONAL ACTION ON INTERNET TAX MORATORIUM
WHEREAS, out -of -state remote sellers who conduct sales via the Internet,
mail order, and phone are not required by law to collect existing sales and use
taxes imposed by state and local governments where the purchaser resides; and
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 to
authorize states to require remote sellers to collect taxes in a manner that does
not unduly burden interstate commerce; and
WHEREAS, state and local governments are working together to implement a
streamlined sales tax system that would simplify definitions, tax rates and tax
bases and use 21st Century technology in the collection process; and
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; and
WHEREAS, increasing sales on the Internet, and the resulting erosion of
sales and use tax revenues, will limit the ability of state and local government
to finance essential services such as public safety, education, social services,
infrastructure improvement and health care; and
WHEREAS, the United States Constitution reserves for the states the right
to collect and impose taxes; and
WHEREAS, 45 states and the District of Columbia collect over 40% of overall
revenue from sales taxes to fund vital public services; and
WHEREAS, a recent University of Tennessee study estimates that state sales
tax revenue losses in 2003 will exceed $10 billion; and
WHEREAS, the Advisory Commission on Electronic Commerce, established by the
Internet Tax Freedom Act, failed to reach a legally required consensus on fair
and equitable treatment of both remote sellers and "Main Street" retailers and
also proposed that Congress preempt state and local sovereignty guaranteed by the
United States Constitution; and
WHEREAS, the Commission's report to Congress does not effectively address
the tax losses state and local governments will experience if the Internet
becomes a permanent tax -free retail market.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE
VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS that:
Section 1. The Village of Buffalo Grove 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.
S6,ction 2. The Village of Buffalo Grove, Illinois supports simplification
of state and local sales and use taxes, and urges states to move
expeditiously to develop and approve model simplification legislation.
Section 3. Congress should not extend or expand the current moratorium
until its expiration in October 2001.
0
Section 4. If state and local governments choose to negotiate a brief
extension of the existing moratorium as part of a broader bill, such
extension should only be effective for a short period of time (no more
than two years) and must be linked to states' successful implementing
sales and use tax simplification, which would trigger Congressional
authorization of expanded duty to collect use taxes on remote sales.
Section 5. A copy of this Resolution shall be sent to Senator's Durbin and
Fitzgerald and Representative Porter.
AYES: A - Marienthal, Braiman, Glover Berman
NAYES: 0 - None
ABSENT: 2 - Reid, Hendricks
PASSED: May ,1 ,2000.APPROVED: May 1 ,2000.
Village President
ATTEST:
Villa.gb Clerk