HomeMy Public PortalAboutResolution No. 137-00 05-09-2000
• RESOLUTION NO. 137-00
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RICHLAND HILLS, TEXAS, SUPPORTING THE DELAY OF
CONGRESSIONAL ACTION ON INTERNET TAX
MORATORIUM, SUPPORTING SIMPLIFICATION OF
STATE AND LOCAL SALES TAXES AND URGING STATES
TO MOVE EXPEDITIOUSLY TO DEVELOP AND APPROVE
MODEL SIMPLIFICATION LEGISLATION.
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; 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 21S` 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 healthcare; 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 RICHLAND HILLS, TEXAS, THAT:
• 1. The City of Richland Hills supports simplification of state and local sales taxes,
and urges states to move expeditiously to develop and approve model simplification
legislation;
• RESOLUTION NO. 137-00 PAGE 2
2. Congress should not extend or expand the current moratorium until its expiration in
October 2001; and,
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.
PASSED AND APPROVED by the City Council of the City of Richland Hills, Texas, by
a vote of 4 ayes, 0 nays, and 0 abstentions, on this the 9`'' day of May' 2000.
APPROVED:
_
i'`
• C. F. K LEY, MAYOR
ATTEST:
TE WILLIS, CMC, CITY SECRETARY