RE 2000-05-09.2 RESOLUTION NO. 2000-0509.2
A RESOLUTION ON DELAYING CONGRESSIONAL ACTION ON INTERNET
TAX MORATORIUM.
WHEREAS, out-of-state remote sellers who conduct sales via the Intemet, mail order, and
phone are not required by law to collect existing sales and use taxes imposed by state and local
governments; 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 govemments 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 states and governments and school districts to finance
essential public services such as police, fire, emergency medical service, education, social
services, infrastructure development, and health care; 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 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
U. S. Constitution.
NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE
CITY OF COPPELL, TEXAS SUPPORTS SIMPLIFICATION OF STATE AND LOCAL
SALES TAXES, AND URGES STATES TO MOVE EXPEDITIOUSLY TO DEVELOP
AND APPROVE MODEL SIMPLIFICATION LEGISLATION; AND
BE IT FURTHER RESOLVED that Congress should not extend or expand the current
moratorium until its expiration in October 2001; and
BE IT FURTHER RESOLVED that if state and local governments choose to negotiate
a brief extension of the existing moratorium as part of a broader bill, such an extension:
· Should only be effective for a short period of time (no more than two years); and
Must be linked to states' successfully implementing sales tax simplification, which would trigger
Congressional authorization of expanded duty to collect use taxes on remote sales
DULY PASSED and approved by the City Council of the City of Coppell, Texas, on this
the 9th day of May 2000.
APPROVED:
CANDY SHEEHAN, MAYOR
ATTEST:
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
ROBERT E. HAGER, CITY ATTORNEY