Resolution 13211CITY OF ALAMEDA RESOLUTION NO. 13211
DELAYING CONGRESSIONAL ACTION ON INTERNET TAX MORATORIUM
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 21st
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 that the City of Alameda supports
simplification of state and local sales taxes, and urges states to move expeditiously to develop
and approve model simplification legislation; and
BE IT FURTHER RESOLVED that Congress should not extend or expand the current
moratorium until its expiration in October 2001, and
BE IT FURTHER RESOLVED that 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.
I, the undersigned, hereby certify that the foregoing Resolution was duly and regularly
adopted and passed by the Council of the City of Alameda in regular meeting assembled on
the 16th day of May 2000, by the following vote to wit:
AYES: Councilmembers Daysog, DeWitt, Johnson, Kerr and
Mayor Appezzato - 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official seal of said City
this 17th day of May , 2000.
ne Felsch, City Clerk
City of Alameda