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RESOLUTION NO. R-OO-25
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN
RIVER COUNTY, FLORIDA REQUESTING DELAY OF
CONGRESSIONAL ACTION ON INTERNET TAX
MORATORIUM; PROVIDING FOR REPEAL OF
RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT
HEREWITH; PROVIDING FOR A SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
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;
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, 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 BY THE CITY COUNCIL OF THE CITY
OF SEBASTIAN, FLORIDA
Section l. That the City of Sebastian support simplification of State and local sales taxes,
and urge states to move expeditiously to develop and approve model simplification legislation; and
Section 2. That Congress should not extend or expand the current moratorium until its
expiration in October 2001; and
Section 3. 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.
Section 4. This Resolution shall become effective immediately upon adoption.
The foregoing Resolution was moved for adoption by Councilmember ~
The motion was seconded by Councilmembef Iav ~ and, upon being put into a
vote, the vote was as follows:
Mayor Walter Barnes
Vice Mayor Ben Bishop
Councilmember Joe Barczyk
Councilmember James Hill
Councilmember Edward Majcher
The Mayor thereupon declared the Resolution duly passed and adopted thi~ day of
. 2000.
CITY OF SEBASTIAN, FLORIDA
By: \JJcJ~ fb~
Walter Barnes, Mayor
ATTEST:
tJ.-
(SEAL)