0530 000006
RESOLUTION NO. 530 ( #6 - 2000)
A RESOLUTION OPPOSING AN ADDITIONAL MORATORIUM ON THE EXPLORATION AND
APPLICATION OF SALES TAX TO E- COMMERCE TRANSACTIONS; AND, FOR OTHER
PURPOSES.
WHEREAS, the use of new communications technologies, including the Internet, as a way to
conduct sales of goods and services is accelerating at an unbelievable pace and out -of -state vendors
who conduct sales via the Internet, mail order, and telephone, under many circumstances, are not
required by existing laws to collect sales and /or use taxes imposed by the state and local governments
of the purchaser;
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 and only Congress to authorize states to require
remote vendors to collect taxes in a manner that does not unduly burden interstate commerce;
WHEREAS, current laws create a competitive disadvantage and great inequities between
merchants who sell from traditional "brick- and - mortar" establishments and those who sell through E-
Commerce, and the United States Constitution reserves for states the right to collect and impose taxes;
and,
WHEREAS, forty-five (45) states and the District of Columbia collect over forty percent (40 %)
of overall revenue from sales taxes to fund vital public services, and a recent University of Tennessee
study estimates that state sales tax revenue losses in 2003 could exceed Ten Billion Dollars
($10,000,000,000.00) should additional delay occur in the imposition of an E- Commerce sales tax; and,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF JACKSONVILLE,
ARKANSAS, THAT:
SECTION ONE: The City of Jacksonville, Arkansas, opposes any Congressional action
to implement the Advisory Commission on Electronic Commerce's report proposals that would preempt
state and local sovereignty, both guaranteed by the Tenth Amendment of the United States
Constitution.
SECTION TWO: The City of Jacksonville supports simplification of state and local sales
taxes and urges states to move expeditiously to craft and approve model legislation.
SECTION THREE: The City of Jacksonville opposes any congressional efforts to expand
the current moratorium to cover state and local sales and use taxes.
SECTION FOUR: The City of Jacksonville opposes any efforts to extend the current
moratorium unless the extension is for two (2) years or less and is directly linked to Congressional
authorization to states that simplify their sales and use tax system to collect use tax on all remote
transactions.
SECTION FIVE: All resolutions or parts of resolutions in conflict herewith are hereby
repealed to the extent of said conflict.
APPROVED AND ADOPTED THIS 4Lk" DAY OF MAY, 2000.
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MAYOR TOMMY S AIM
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