HomeMy WebLinkAboutR-01-70RESOLUTION R-01-70
A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN
RIVER COUNTY, FLORIDA, URGING CONGRESS TO
PROVIDE ELECTRONIC COMMERCE EQUITY BY
ADOPTING LEGISLATION THAT ASSURES
OUT-OF-STATE VENDORS COLLECT AND REMIT
STATE AND LOCAL SALES AND USE TAXES WHERE
SUCH TAXES ARE DUE.
WHEREAS, the use of the Internet as a way to purchase goods and services is
steadily increasing; and
WHEREAS, in October 1998, Congress passed the Intemet Tax Freedom Act,
imposing a three-year moratorium on new state and local taxes for online transactions
and sales; and
WHEREAS, because of this law, goods and services purchased out-of-state in
many cases are not subject to existing sales and use taxes imposed by the state and local
governments where the purchaser resides; and
WHEREAS, the moratorium is set to expire in October, 2001, with no resolve yet
to this issue; and
WHEREAS, H.R. 1552 has been filed in the U.S. House of Representatives,
which would extend the Intemet Tax Freedom Act moratorium for five years without
resolving sales and use tax collection issues; and
WHEREAS, legislation has also been filed, S. 512 in the U.S. Senate and H.R.
1410 in the U.S. House of Representatives, entitled the "Internet Tax Moratorium and
Equity Act", and is supported by U.S. Senator Bob Graham and U.S. Representative
Mark Foley, respectively; and
WHEREAS, S. 512 and H.R. 1410 would encourage states to simplify their sales
and use tax systems by giving those states the authority to collect taxes on goods or
services sold through the internet and delivered in-state, without regard to the location of
the seller, provided the states' sales and use tax systems meet specific simplification
criteria and the states join a federally authorized Compact; and
WHEREAS, the City of Sebastian supports the establishment of uniform national
standards and definitions for use by states to simplify their individual tax structures, and
supports a mechanism that allows for the collection of a sales tax on remote sales so that
states can recoup lost sales tax revenues; and
WHEREAS, states need the flexibility to set their own simplified state use tax
rate that recognizes local option application of certain sales and use taxes and meets the
resource needs of individual state and local jurisdictions; and
WHEREAS, states need the authority to simplify their tax structure without being
subject to additional burdensome Congressional oversight after such tax structure has
been established; and
WHEREAS, tax-collection software exists to facilitate the collection of use tax in
multiple states with multiple rates and exemptions; and
WHEREAS, the City of Sebastian supports legislation that considers the tax
collection challenges of small and start-up businesses when they conduct sales over the
Internet, provided the legislation does not include a permanent de minimis exemption
from use tax collection requirements for a remote seller of a certain size; and
WHEREAS, the City of Sebastian supports the efforts of U.S. Senator Bob
Graham and U.S. Representative Mark Foley in co-sponsoring legislation that addresses
electronic commerce fairness, and urges members of the Florida Congressional
Delegation to support legislation that resolves the use tax collection issues in a manner
that is equitable to cities.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SEBASTIAN:
Section 1: That the City of Sebastian supports federal legislation that compels all
retail merchants to collect and remit sales and use taxes for out-of-state purchases where
such taxes are due.
Section 2: That the City of Sebastian does hereby urge Congress to amend S. 512
and H.R. 1410 to give applicable states and local jurisdictions the authority and flexibility
to collect sales and use taxes for out-of-state purchases made within their jurisdiction.
Section 3. That the City of Sebastian supports federal legislation which would
simplify the tax systems of state and local government and which would facilitate the
collection of required state and local sales and use taxes from mail order, Intemet and on-
line sales transactions.
Section 4. That the City of Sebastian opposes any extension of the current
moratorium, unless it is linked to Congressional authorization for state and local
authorities to collect use tax on remote sales; and
Section 5. That a copy of this resolution shall be provided to the Florida
Congressional Delegation, the National League of Cities, the U.S. Conference of Mayors,
Florida Governor Jeb Bush, and interested parties.
The foregoing Resolution was moved for adoption by Councilmember
H± 11 The motion was seconded by Councilmember Ma j cher
and, upon being put into a vote, the vote was as follows:
Mayor Walter Barnes
Councilmember Joe Barczyk aye
Councilmember Ray Coniglio aye
Councilmember James Hill aye
Councilmember Edward J. Majcher, Jr. aye
absent
THE MAYOR THEREUPON declared this Resolution duly passed and adopted this
10th Day of October 2001.
CITY OF SEBASTIAN, FLORIDA
Walter W. Barnes, Mayor
Sally A.~.ai°, CMC City clerk
Approved as to form and legality for the
reliance by the City of Sebastian only:
' ' g ,CityAt m~ey