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Home My Public Portal AboutA1999-11-24 LII_sp AG�A ITEMS ON FILE FOR CONSIDE��ION � _. AT THE SPECIAL MEETING OF ��t� !" �L-a..�`,�( THE LYNWOOD INFORMATION INC. I R E C E I V E D I TO BE HELD ON NOVEMBER 24, 1999 ��n' OF LYNWOOU 9:00 A.M CITY CLERKS OFFICE . COUNCIL CHAMBERS h�� 2 3 19yr . 8 i 9 in�lil 2 �li�3i4�5�6 RICARDO SANCHEZ '!' CHAIRMAN �4.�.,Lc�c_�� 'C/ r , LOUIS BYRD ARMANDO REA DIRECTOR DIRECTOR ARTURO REYES PAUL H. RICHARDS, II DIRECTOR DIRECTOR CITY MANAGER CITY ATTORNEY RALPH W. DAVIS, III SHAN THEVER & ASSOCIATES SECRETARY TREASURER ANDREA L. HOOPER IRIS PYGATT OPENING CEREMONIES 1. CALL TO ORDER 2. ROLL CALL OF MEMBERS Louis Byrd Armando Rea Arturo Reyes Paul Richards Ricardo Sanchez 3. CERTIFICATION OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIVE DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT IT IS ALL RIGHT FOR COUNCIL TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54950-54962, Part III, Paragraph SJ CONSENT CALENDAR � � 4. MINUTES OF PREVIOUS MEETING: � � Regular Meeting, November 16, 1999 � I � . I I ' 5. INTERNET �XATION AND THE ADVIS� COMMITTEE ON . ELECTRONIC COMMERGE Comments: The National Governors Association has adopted a policy on the Internet Taxation issue. It is called the Streamlining State Sales Tax Systems. The complete text of the NGA policy is attached for the board members review. In additional to the NGA, the National League of Cities and its membership is scheduled to debate and vote on additional policy resolutions on electronic commerce at next weeks Congress of Cities which will be held in Los Angeles from November 28, 1999 though December 4, 1999. Recommendation: To provide the members of the Lynwood Information Inc. with . an update relative to the Internet taxation issue and to recommend that after review, the Lynwood Information Inc. Board receives and files this report. DISCUSSION ITEMS NONE ADJOURNMENT MOTION TO ADJOURN TO A REGULAR MEETING TO BE HELD ON DECEMBER 7, 1999 AT 6:00 P.M. IN COUNCIL CHAMBER ROOM, CITY HALL, CITY OF LYNWOOD, CALIFORNIA. , ; , , - • . r , LYNWOOD INFORMATION INC.. NOVEMBER 16. 1999 The Information Inc., of the City of Lynwood met in Regular Session at City Hail, 11330 Bullis Road on the above date at 7:06 p.m. Chairman Sanchez presiding. ° Directors Byrd, Rea, Reyes, Richards, Sanchez answered roli calL Also present were City Manager Davis, City Attorney Thever, Secretary'Hooper and TreasurerPygatt. Secretary Hooper announced the Agenda had been posted in accordance with The Brown Act. PUBLIC ORAL COMMUNICATIONS - AGENDA iTEMS ONLY None Item #4: Minutes It was moved by Director Byrd, seconded by Director Rea and carried to approve the following minutes: , Special Meeting, October 28, 1999 Regular Meeting, November 2, 1999 4 Item #5: Warrant Register. , It was moved by Director Byrd, seconded by DirectorRea to adopt: LII RESOLUTION NO. 99.10 ENTITLED: "A RESOLUTION OF THE LYNWOOD-INFORMATION INC., LYNWOOD, CALIFORNIA ALLOWING AND ' ARPROVWG THE DEMANDS". ROLL CALL: AYES: DIRECTORS BYRD, REA, REYES, RICHARDS, SANCHEZ NOES: NONE ABSENT: NONE CLOSED SESSION None Having no further discussion, it was moved by Director Byrd, seconded by Di�ector Rea and carried to adjourn at 7:07 p.m. CHAIRMAN, RICARDO SANCHEZ . SECRETARY,ANDREAL.HOOPER _ �, AGENllA ITEM � � , -; DATE: November 24, 1999 • TO: The Honorable Chairman and Directors of the Lynwood Information Inc. FROM: Ralph W. Davis, III, City Manager BY: Christian Valtierra, Project Manager SUBJECT: Internet Taxation and the Advisorv Committee on Electronic Commerce PURPOSE: To provide the members�of the Lynwood Information Inc. with an update relative to the Internet taxation issue and to recommend that after review, the Cynwood Information Inc. Board receive and file this report. BACKGROUND: Only July 20' 1999, the Members of the Lynwood Information Inc. were furnished with detailed report that provided background information relative to the Intemet Taxation issue. , The reports detailed Internet Tax Freedom Act (ITFA) of 1998. The main points of the ITFA includes no tax on Internet access, no discriminatory treatment of the Intemet, the creation of a Commission and calls for Global Free Trade. On August 3, 1999, the Lynwood Information Inc. (LII) was given an update on the "Internet Tax Freedom AcY'. The ITFA is a law passed by congress that imposed a • three-year moratorium was placed on new state and local taxes targeted at Internet access and commerce by the "Internet Tax Freedom AcY'. During the moratorium period, a 19-member commission (Advisory Commission on Electronic Commerce) is ' charged with studying what type of tax treatment should be applied to the Intetnet and examining whether states should be aliowed to collect sales taxes from customers in states where the companies do not have a physical presence. � UPDATE: Summary � Aboutthe Commission ' , The Advisory Commission on Electronic Commerce (ACEC) was created by Congress to study federal, state, local and intemational taxation and tariffs on transactions using the Internet and Internet access. This commission is tasked with producing what is ' arguably the most important policy initiative of the information age. Its recommendations on the critical issues of electronic commerce and tax policy will have global implications. Current Commission Members and Staff: ° • Mr. Dean Andal, Chairman, California Board of Equalization • Mr. Michael Armstronq Chief Executive Officer, AT&T • The Honorable James Gilmore, Governor, Commonwealth of Virginia ',' • Mr. Joseph Guttentag Senior Advisor, Office of Tax Policy, U.S. Treasury Department (delegate for Lawrence H. Summers Secretary, U.S. Department of the Treasury) • The Honorable Paul Harris Delegate, Virginia House of Delegates ` • Ms. Delna Jones, County Commissioner, Washington County, Oregon �`' • The Honorable Ron Kirk Mayor, City of Dallas • The Honorable Michael Leavitt, Governor, State of Utah , • Mr. Gene Lebrun, President (1997-1999), Nationai Conference of Commissioners on • Uniform State Laws • The Honorable Garv Locke Governor, State of Washington • Mr.-Robert Novick General Counsel, U.S. Department of Commerce f (delegate for Ambassador Chariene Barshefskv, U.S. Trade Repres P_G=:i�:ll�1 ZTE2d - � � ' , . Mr. Grover Norquist, President, Americans for Tax Reform ° � . Mr. Richard Parsons President, Time Warner, Inc. _ . Mc Andrew Pincus; General Counsel, U.S. Department of Commerce (delegate for Mr. William M. Dalev Secretary, U.S. Department of Commerce) . Mc Robert Pittman President & Chief Operating Officer, America Online '• • Mr. David Pottruck, President & co-CEO, Charles Schwab and Company . Mr. John Sidqmore Vice Chairman and COO, MCI Worldcom • Mr. Stan Sokul , Association for Interactive Media • Mr. Theodore Waitt, President & Chief Executive O�cer, Gateway, Inc.� Current Commission Staff Contact: ➢ Heather Rosenker, Executive Director � 3401 North Fairfax Drive Arlington VA 22201-4498 Phone:703/993-8049 � FAX: 703/993-8124 . � e-mail: rosenker(a�qmu.edu ; ; � Action Plan: The meeting dates for the Advisory Commission on Electronic Commerce is as follows: ✓ June 21 and 22, 1999 ' First Meeting to be held at Williamsburg, VA �. „ During the first meeting, the Commission elected a Chairman, appointed an Executive Director, decided on administrative matters (such as voting on charter, operating rules, future meeting dates and locations, proposed budget, and'funding - program) and heard some testimony (see attached agenda from the June 21 meeting). � ✓ September 14 and 15, 1999 � Second Meeting to be held at New York City, NY ', c At this meeting, the commission reviewed their budget, reviewed operating' � procedures, and other administrative matters. In addition, they heard testimony on both sides of the Internet tax debate. ✓ December 14 and 15, 1999 r Third Meeting to be held at San Francisco, CA (see attached for meeting information) ✓ March 20 and 21, 2000 ' Fourth Meeting to be held at Dallas, TX ' Other News: �� The National Governors Association has adopted a policy on the Internet Taxation - issue. It is called the Streamlining State Sales Tax Systems. The complete text of the • NGA policy is attached for the board members review. ' The essential characteristics of the Streamlined Sales Tax System for the 21 Century wili be designed to achieve the following goals: ; 1. Eliminate the burden for firms to collect state and local sales taxes. 2. Maintain the current definitions of nexus for all state and local governments (i.e., . there is no intent to expand or contract the definition of nexus). = 3. Simplify the current system of exemption administration through a combination of changes in state taws, standardized administrative procedures, and technology. � � • 4. Enact this system by the states and not request any action by the federal government to compel seilers to collect. 5. Offer this system in a phased-in approach to all sellers on a voluntary basis. 6. Eliminate costs of compliance, tax returns and payments, and tax audits. 7. Eliminate tax rate monitoring and implementation, and eliminate record=keeping requirements for sellers. 8. Eliminate any requirement for sellers to police the intent or status of pu�chasers ` ' asserting special exemptions. ; 9. Eliminate risks (bad debts, audit liabilities, etc.) for seller exercising reasonable care (no negligence or fraud). . In additional to the NGA, the National League of Cities and its membership is scheduled to debate and vote on additional poiicy resofutions on eiectronic commerce atnext weeks'Congress of Cities which will be held in Los Angeles from November 28, 1999 though December 4, 1999. � RECOMMENDATION: � ;; � - ;� To provide the members of the Lynwood Information Inc. with an update relative to the Intemet taxation issue and to recommend that after review, the Lynwood Information � Inc. Board receives and files this report. !� � �: _ � � �; ; � r. � ; f. L � t, ' b Y . � F � � f ,i . . � � i� �i �. 1. {1 � . . . . �� - k . . � Advisory Commission on Etectronic Commerce -- First Meeung Agenaa ra�e , o: _ • . 5 1 Advisory Coma�lsslon a� Qeefroaic CoMMeree omm e --------- �� Calendar/Meetings Ths � Co mniuion "�` °'� First Meeting of the E-Commerce Commission College of William & Mary, University Center E' Williamsburg, Virginia � June 21 -- 22, 1999 �' See the minutes � y ,� See the transcri ��ts. ? v � � � Agenda � � � , ;� June 21, 1999 p 4:00 p.m. -- 5:00 p.m. Organizational Meeting y ", Location: East Lounge, Williamsburg Inn { i � . Election of Chairman �h ' . Opening Remazks of Chairman i,� . Appointment of Executive Director i , . Administrative Matters (such as voting on charter, operating rules, future meeting dates and locations, proposed budget, and funding program) ii I' 5:00 p.m. -- 530 p.m. Press Availability (Commission Members) ;' ; � June 22, 1999 � n Location: College of William & Mary, University Center t' � � � i, ;� 8:00 a.m. -- 8:30 a.m. Public Registration 8:30 -- 8:50 Opening Remarks f' Honorable James S. Gilmore, III, Chairman and Governor of the Commonwealth of Virginia;' 8:50 -- 9:10 Vision of the Internet �� John Sidgmore, Vice Chairman MCI WorldCom and Chairman ULJNET and p Commissioner Advisory Commission on Electroqic Commerce `s 9:10 -- ] 0:15 Opening Remarks by Commission Members 10:15 -- 10:30 Morning Break i� a � . n ,; http://www.ecommercecommission.org/williams/agenda.htm i ii e ,� E ° � � � , ;�: , „ . � u Advisory Commission on Electronic Commerce -- First Meeung Agenua j'u=� - �� - 1030 a. �- 12:30 p.m. Presentations � , i Implications of Electronic Commerce for„U.S. Domestic Economy and U.S. Intemational Competitiveness i . An dre�m Pincus General Counsel, U.S. Department of Commerce, Presentation of "The Digital Economy � . Peter Merrill, PriceWaterhouseCoopeis, Washington, D.C. �� Implications of Electronic Commerce forNGlobal Economy, International Tax and Tariff I"ssues � . Joseph Guttentag, Senior Advisor foriTax Policy, U.S. Department of Treasury r . Donald Abelson, Office of the U.S.'Tiade Representative k ,r. 12:30 -- 1:30 Lunch '' Lunch is available for a fee in the food court of the University Hall. ' i 1:30 -- 1:45 Press Conference for Commission Membe�rs 2:00 -- 4:15 Presentations (continued) ' � �a Sales & Use Taxes in United States ;� � a ' . William Fo�, Ph.D., University of Tennessee (Sales Taxes as Revenue Sources and�Cyber Economy) ' . Austin Goolsbee, Ph.D., University of Chicago School of Business (The Impact of Taxation on Internet Sales) . W"aher I Icllerstein, J.D., University of Georgia School�of Law (The Law of Sales Tazes in a Cyber Economy) ' ;� Policy Perspectives on Taxation in a Cyb'er Economy � . Charlcs McLuro, Hoover Institution j; � . Honorablc Orson S�vindle, Commissioner, Federal Trade Commission ' ;; . N 4:15 -- 5:15 Open Discussion by Commission Membe�s ,, 5:15 -- 5:30 Closing Remarks by Honorable James S: Gilmore, 111, � � Chairman & ` a Governor of the Commonwealth of Virginia ; � The Commission � Press Room �, ;� � I-lome � Site, Map � FAQs � I.inks � E-mail ! y - �� '� ;{� ,� ,� http://www.ecommercecommission.org/williams/agenda.htm { (', 1i �, � i' � �� ,, �,, �;i �� 1i; � j� � � � . � ; �, �� , Advisory Commission on Electronic Commerce -- Second Meetmg Agenaa � � ra�c � u. , � � ; � Adrlaory Commission o� Eleefro�lc tosmeree ,; oAnm e --------- � �� Ca►lendar/Meetiags � �, ,�� ,� The =f[Co mnission � � Second Meeting of the E-Commerce ;:; Commission � , Advisory Commission on Electronic Commerce ,;� New York, New York ;; September 14-15, 1999 j � � �n See the transcripts. ; ti �r Agenda ; � ,;, ,, u ' ; � � ,.�. , ,i , �; Tuesday, September 14 i � Location: Millenmum Hotel, 145 West 44tb Street, Eight Floor l, i�i i' 230 PM Registration I � f; � {�; � 3:00 -5:00 PM LOCAL, STATE & FEDERAL TAX ISSUES ASSOCIATED WITH INTERNET ACCESS AND TELECOMMUNICATIONS � i Presenters (alphabetical order): � � Ip Annabelle Canning, Vice President, Coinmittee on State Taxation � ; � presentation � Jeffrey A. Eisenach, President, The P�ogress & Freedom Foundation �escntation � � n --- . Raymond Keating, Chief Economist, �! � all Business Survival Committee Ed Shimizu, Director, National Regulatory Relations, GTE � ; P resentatiotl , ----- - ; 'i Open Discussion and Q&A by Commission i' �; 1 ' http://www.ecommercecommission.org/newYork/agenda.htm � j ( �!i i" �� . �'�, � i ;r . � E � i '' � �� 1 a y � Advisory Commission on Electronic Commerce =- Second Meeting Agenda �,� ra�e : oi � � � � Members � j ;. i`, Resolutions offered by Grover Norqu�st�� ; , � � ' 5:00 - 5:30 PM ADMINISTRATIVE MATTERS I i+ * Operating Rules (discussion of techni�al amendments and approval) � � * Charter (approval) � '� " Budget (approval and update on funiling from Congress) � � * Work Plan 1 I' � �� , , Wednesday, September 15 � Location: Global Community Sandbox, 55 Broad Street ; �; 8:00 AM Registration i � 9:00 AM - 12:30 PM LOCAL, STATE & FEDERAL TAX ISSUES ASSOCIATED WITH ELECTRONIC COMMERCE: - Presenters (alphabetical order): ! I �f Charles E. Bayless, Chairman, Presiden� and CEO, Illinova Power , t Dan Bucks, Director, Multistate Ta�c C�mmission presentation i �� Kaye Caldwell, CommerceNet i � ' presentation � ! 1 Gary Comia/Kendall Houghton, National Tax Association - Communications and Electronic Coimerce Tax : Project i ;� presentation I i Harley Duncan. Director Federation of Tax ' Administrators { presentation � ; ' �, Jim Eads, Ernst & Young �' � presentation � ; George lsaacson, Direct Marketers' A±sociation � presentation � ° � J Commissioner Randy Johnson, Chair�of the Hennepin MN County Board � Councilman Joseph Brooks, City of Richmond, VA Representing: � • The Council of State Governments� '� : �' http://www.ecommercecommission.org/newYork/agenda.htm ) j �I I ! I � .� �: _ �� 1 I , � , � � � , � ` �� a iy (:t Advisory Commission on Electronic Commerce =- Second Meeting �genaa � i rur� � �: � � Intemational Ciry �County management � Association � National Conference of State Legisl�at� rs � National Association of Counties i'� National Govemors Association I � National League of Cities a ' U.S. Conference of Mayors �ese ntation ' � � ' Bruce Josten, U.S. Chamber of Commer1 e presentation � Rep. Matthew Kisber,l"N I � Sen. Steven Rauschenberger, IL �� Representing the National Council of. State Legislators � � presentation - Michael Mazerov, Center on Budget and Policy Priorities � { � resentation � ------ � Terrence P. Ryan, Director-State and Local Taxes, Apple Computer ,� � resentation ' ----- { � Fran Smith, Consumer Alert 1 rescntations �. ---- — I � VJm. Gregory Turner, Califomia Taxp Association ; resentation 1� p — -- -- � h � ; � 12:30 - 2:00 PM LLTNCH 1:45 - 2:00 PM Media Availability -- Global Community Sandbox, 4th Floor 'k 4 , 2:00 - 3:30 PM ELECTRONIC COMMERCE TAX ISSIIES (conlinued from morning sessian) � ;j � Open Discussion and Q&A by Comm!s lion Members � � � 3:30 - 5:15 PM INTERNATIONAL TAXES, TARIFFS & DUTIES ASSOCIATED WITH ELECTRONIC COIVIMERCE , Presenter. �� E http://www.ecommercecommission.org/newYork/agenda.htm ; . � a ��,� i I , � � � ; Advisory Commission on Electronic Commerce -- �econd Meeung Agenaa �� ra�� -. �� I �' Fred Smith, Competi� Enterprise Institute - presentation �. Open Discussion and Q&A by Commission Members � Resolutions offered by Stanley Sokul and Grover Norquist y '� G 5:15 - 5:30 PM CLOSING ADMINISTRATIVE MATTERS , ! � The Commission � P ress Raom (_ ___ � Home ��Site Map � FA s � Links � E-mail � ; � i � ��;� I . � i , � ,� , !1. I � � � � �f � �� , � , �� . ;�' ,� I �I I ' � http://www.ecommercecommission.org{newYork/agenda.htm � � I , � � { i i i � � � � ' � � � J I - { � � �,� I I i � Advisory Commission on Electronic Commerce -- �an Fcancisco Meeung rse� . � , � � � , Adrlsory Comm(sslon o� Deefro�Ic Cor�erce �, omm e --------- �� Calendor/Meetings � Ths ! Co mmissia n , ��_;:�rr - - Third Meeting of the E-Commerce Commission San Francisco, California ' December 14 - 15, 1999 I� �ister for the meeting I I � � December 14, 1999 The Westin St. Francis Hotel _ 335 Powell Street San Francisco, California 94102 i Colonial Room, Mezzanine Floor � (415)397-7000 i 12 noon Registration � � 1 p.m. - 530 p.m. meeting December 15, 1999 The Westin St. Francis Hotel Colonial Room, Mezzanine Floor � 7:30 a.m. Registration I 830 a.m. - 530 p.m. meeting �� R�ce ister for the meeting A block of rooms has been reserved at the St. Francis Hotel for December 14 and 15. The cost is $175 per room per night, and the rooms aze blocked under the "Advisory Commission on Electronic Commerce." The block will ezpire Thursday, November 18. To make reservations, call the hotel direc{ly at (415) 397-7000, or Westin Reservations at (800) WESTIN-1. The Commissiun � Press Room � � Hpme � Site ��lap � PA(�s � Links � L-mail ! I i � I http://wtivw.ecommercecommission.org/sanFran/index.htm ', i , i , � '� � i � � ,, i � I • t � ;, i � � EG12. STREAMLINING STATE SALE,S IA�i �Y� i r.M� f' �"°_� ` �• - - � � i� A I . �--:-...- - - � r I � °s�:� � ,_. _ - EC-12. Streamlining State Sales Tax Systems � . NGi; Poiicv Index Paqe �, 1 EC-11. Child Care and Earlv Educauor �; i EG1� Eoual Riqhts � � i 12. 1 Preamble i j The National Governors' Association supports state efforts to pursue, through negotiations, the courts, and federal legislation, provisions that would require large out-of-state mail order firms to collect sales and use taxes from their customers. Such action is necessary to restore fairness to competition between local retail store purchases and out-of-state mail transactions ancl to provide a means for the states to collect taxes that are owed under existing law. The recent rapid growth of the Internet has underscored the importance of this equitable treatment. The Governors have called for the development of a iwenty-first century sales tax that can achieve this fairness for all forms of sales: Main Street, mail order, and Intemet. A streamlined sales tax with simplified compliance requirements will ensure that states are prepared to support the global electronic marketplace of the next century. I� The U.S. Supreme Court in the Quill decision explicitly reaffirmed the authority of Congress to address state tax issues that affect interstate commerce. Although state action is needed to simplify the sales tax, federal action will be needed to ensure tnat it can be fairly applied.: I 12.2 Streamlined Sales Tax . � � �i The Governors call forjoint industry/govemment development of a simplified sales taxlsystem, including greater consistency among states in definitions, forms, and rules, and significantly easier compliance, reporting, and audit requirements. The Govemors support the worfi of the National Tax Association's Communications and Electronic Commerce Taxation Project, the Northwest Regional Sales Tax Pilot Project, and other joint efforts. Sales tax simplification should conform to the following principles. G,' 12.2.1 One Sales Tax Rate per State. States will continue to have the option of not imposing the sales tax. In states where a sales tax is levied, each state will need to establish a single �ate for remote sellers to collect. States will also need to establish a method of distributing to local governments their appropriate share of such taxes. i 12.2.2 Uniform Structure and Simplified Compliance with the Sales Taxes. The Governors call for joint industry/government development of a system in which the def nitions of the�goods or services that may be taxed are uniform and consistent across state lines. States will be allowed to choose whether or not to tax specific goods or services that are uniformly defined across all states. Besides simplifying the tax, these definitions will give states the ability to identify and address instances where discriminatory or multiple taxation currently exists. The Governors also call for joint industry/government development of significant simplifications in the administration of the sales tax in areas such as uniform registration, tax retums, remittance requiremen4s,'and filing procedurea One potential approach to administration of sales taxes would be to encourage establi�sh�ment of a system of independent third-party organizations that would be responsible for remitting taxes to the states. Remote sellers would use a software package preapproved by the states tYiat would calculate the tax due on the purchase based on the state rate where the item is sent, antl electronically remit that tax to the collection organization. Remote sellers that opt to use the third- party system would enjoy additional benefits of compliance, including not filing returns�and not remitting funds to states. � 12.3 Expanded Duty to Collect � i http://www.nga.org/Pubs/Policies/EC/ec 12.asp ! � i I i �' � I � I ' j � � I I � i {� EG12. STREAMLINING STA"I'E SALES T".SX SY�1t;M� i rug: _ �_ � � �' ' The Govemors call on Congress to re-establish faimess in state sales tax systems by requinng remote sellers to collect sales taxes for any state that simplifies its tax system in accorclance with the foregoing principles. States that choose not to simplity the sales tax would retain a harrow and limited physical nexus standard. The expanded duty to coilect would require remofe 'vendors tacollect sales and u5e tax in every state where they sold taxable products and servic i s bnty if: . (I . they had national sales above some de minimis level in the past year; and • they had sales to that individual state's consumers above some lower de minimis Ievel in the past year. � C " It is the Governors' intention that small companies (for example with annual gross sales tielow $100,000 or $200,000) should not be required to co4lect state sa{es taxes on outof-state �sales except under the proposed independent third-party administration system described atiove. Even in that instance, there should be no charge to such small companies. I Time limited (effective Winter Meeting 199�nter Meeting 2001). ! Adopted �nter Meeting 1999. � i � { . i The Govemors � The Orqanization ( The Center � The Issues � News ( Site Directorv � Store � m 1999 Coovnont National Govemors' Association. All rights reserved. � Comments? Visit our Cnnt�r.t NGa. naae. � If you woultl like to�provide site feetlback. contact t�e NGA '<venn7.__er by e-maiL �; I � i � i i I , { i i ' 1 i i � i �` . . . ,' . .. J � � � , { ( . , � � � . . . . . ,I � � . � http://www.nga.org/Pubs/Policies/EC/ec 12.asp � i � ; � � .� � � - � �� • i 1 � �� , � 1 i�