2000-064-RES EXPRESSING THE COUNCIL'S OPPOSITION TO U.S. CONGRESS

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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, established by the Internet Tax Freedom Act, failed to address, in a fair and equitable manner, the growing volume of tax-free sales transactions occurring over the Internet, which have put "brick-and-mortar" stores at a competitive disadvantage; and, WHEREAS, the Commission's report to Congress does not effectively address the tax losses state and local govemments will experience if the Internet becomes a permanently tax-free retail market; and, WHEREAS, the City of Paris has received an Action Alert from the National League of Cities through the Texas Municipal League concerning the e-commerce issue; and, WHEREAS, said Action Alert requested the City Council of the City of Paris, by formal resolution, to express the views of the City Council regarding the important issue of taxation of Internet sales and that such resolution be presented to the City of Paris Congressional delegation to express the concerns of the City of Paris as to the potential impact on the City's future revenues and future economic well-being if sales are allowed to continue on the Internet without requiring sales taxation for such transactions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the City of Paris opposes any Congressional action to implement the Advisory Commission on Electronic Commerce's report proposals. Section 3. That the City of Paris supports simplification of state and local sales taxes, and urges states to move expeditiously to craft and approve model legislation. Section 4. That the City of Paris opposes any Congressional efforts to expand the current moratorium to cover state and local sales and use taxes. Section 5. That the City of Paris 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 6. That copies of this resolution be forwarded to the Texas Municipal League, the National League of Cities, and all appropriate elected federal officials for whom the City of Paris citizens are voting constituents to express the concerns of the City of Paris with regard to protecting current and future sales tax revenues.