League of California Cities Urges Simplicity and Fairness in E-Commerce Tax
Solution  
December 10, 1999
http://www.cacities.org/press_room/press_releases/e_commerce.htm

With the Advisory Commission on E-Commerce set to meet December 14 and 15 in
San Francisco, the League of Cities today announced its intention to press
for simplicity and fairness in the e-commerce tax structure.

"Cities across the nation are working hard to support strong downtown and
neighborhood business districts", said Chris McKenzie, Executive Director of
the California League. "A vibrant local economy requires that 'brick and
mortar' merchants are able to compete with e-commerce and other remote
merchants on a level playing field. Cities will lose retailers in their
commercial districts, and face blight and increased unemployment, if
e-commerce businesses can avoid responsibility for sales taxes when
mainstreet businesses have to collect them."

The e-commerce sales tax issue is emerging as a major concern for local and
state governments across the nation. Under current federal law, states may
not require e-commerce and other remote businesses to collect sales taxes on
their transactions unless they have a physical presence in their state. The
exploding growth of e-commerce will make community-based retailers less
competitive and affect the ability of governmental agencies to fund needed
public services. Mainstreet merchants are joining local and state
governments in calling for equitable tax treatment, regardless of the mode
of transaction.

"We understand the importance of working with e-commerce businesses to find
and build simplified and streamlined processes to deal with tax laws that
differ from state to state," said McKenzie. "There are good models to look
at to guide our work. One example is the streamlined building permit process
that 29 cities and county agencies in Silicon Valley developed, working with
some of the same high tech companies involved in e-commerce. They were able
to develop standardized permit forms and processes, while still preserving
local supervision of building construction activities."

While a comprehensive solution to the e-commerce tax issue will have to be
determined by Congress, numerous organizations throughout the country are
searching for common-sense approaches that will inform congressional debate
over the next few years. "California cities and merchants look forward to
working with the E-Commerce Advisory Commission in the months ahead to
develop equitable and understandable solutions," said McKenzie. "Tax
fairness and simplicity won't be achieved without strong leadership from the
federal government, and the League urges the Commission to make these goals
its top priority," he added.  


FOR IMMEDIATE RELEASE
League Contact: Megan Taylor, (916) 658-8228 

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