2000-064-RES EXPRESSING THE COUNCIL'S OPPOSITION TO U.S. CONGRESS
RESOLUTION NO. 2000-064
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS,
PARIS, TEXAS, EXPRESSING THE COUNCIL'S OPPOSITION TO ANY
ACTION BY THE UNITED STATES CONGRESS TO IMPLEMENT THE
ADVISORY COMMISSION ON ELECTRONIC COMMERCE'S REPORT
PROPOSALS THAT WOULD PREEMPT STATE AND LOCAL
SOVEREIGNTY OVER THE TAXATION OF E-MAIL TRANSACTIONS, AS
THAT SOVEREIGNTY IS GUARANTEED BY THE TENTH AMENDMENT
TO THE UNITED STATES CONSTITUTION; SUPPORTING
SIMPLIFICATION OF STATE AND LOCAL SALES TAXES; OPPOSING
ANY CONGRESSIONAL EFFORT TO EXPAND THE CURRENT
MORATORIUM ON THE TAXATION OF INTERNET SALES; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, the use of new communications technologies, including the Internet, as a way
to conduct sales of goods and services is accelerating; and,
WHEREAS, out-of-state vendors who conduct sales via the Internet, mail order, and phone,
under many circumstances, are not required by law to collect existing sales and use taxes imposed
by state and local governments in which the purchaser resides; and,
WHEREAS, the primary barrier to collecting taxes on remote sales is the Supreme Court's
ruling in Ouill 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;
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, this migration of sales to the Internet is restricting the ability of state and local
govemments and school districts to collect taxes which finance essential public services including
but not limited to police, fire, emergency medical service, education, social services, infrastructure
development, and local healthcare; and,
WHEREAS, the United States Constitution reserves for the states the right to collect and
impose taxes; and,
WHEREAS, forty-five (45) states and the District of Columbia collect over forty (40)
percent of overall revenue from sales taxes to fund vital public services; 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, 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.
Section 7. That this resolution shall be effective from and after its date of passage.
PASSED AND APPROVED this 9th day of May, 2000.
ATTEST:
Mattie Cunningham, City Clerk
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Mayor