R2000-023 02-28-00RESOLUTION NO. R2000-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, SUPPORTING NEUTRAL TAX TREATMENT OF INTERNET
PURCHASES THROUGH ADOPTION OF THE "SALES TAX SYSTEM
FOR THE 21ST CENTURY."
WHEREAS, state and local governments rely on sales and use tax revenues to pay
for public services related to public safety, education, infrastructure maintenance, social
programs and other quality of life services; and
WHEREAS, sales tax comprises nearly half of the tax revenues collected by states
and distributed to local governments; and
WHEREAS, state and local governments have experienced difficulty in collecting
sales and use tax on purchases made from out-of-state businesses, known as remote
sellers; and
WHEREAS, the growth of the Internet has increased the ease with which
consumers can engage in remote sales; and
WHEREAS, between 1997 and 1998, retailers selling on the Internet tripled form
12% to 39%; and
WHEREAS, 93.5% of eCommerce transactions are expected to come from
traditional business and retail sources by 2002; and
WHEREAS, the U. S. Congress enacted the Internet Tax Freedom Act of 1998
which preempts state and local authority by establishing a moratorium on the imposition
of eCommerce-related taxation, and created an Advisory Commission on Electronic
Commerce charged with making recommendations for future Congressional action; and
RESOLUTION NO. R2000-23
WHEREAS, the Internet Tax Freedom Act discriminates against citizens without
Internet access because these individuals will continue to be obligated to pay sales tax on
purchases from local stores, while consumers with the means to afford the necessary
technology for making Internet purchases will not be required to pay sales tax; and
WHEREAS, retailers engaging in eCommerce will continue to experience an unfair
competitive advantage over local, "Main Street," or "bricks and mortar" businesses if the
Internet Tax Freedom Act is made permanent; and
WHEREAS, the National Governor's Association estimates that state and local
government revenues from sales tax could decrease by as much as 20% by 2003 if the
Internet Tax Freedom Act is made permanent; and
WHEREAS, the Advisory Commission on Electronic Commerce is considering
proposals to address eCommerce-related taxation issues, including one jointly submitted
by the National Governors' Association, Council of State Governments, National
Conference of State Legislatures, National Association of Counties, U. S. Conference of
Mayors, National League of Cities, and International City/County Manager's Association
entitled "Streamlined Sales Tax System for the 21st Century"; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City Council of the City of Pearland hereby opposes attempts
by the United States Congress to enact further legislation to extend the moratorium and
thereby preempt the authority of state and local governments.
2
RESOLUTION NO. R2000-23
Section 2. That the City Council hereby supports the "Streamlined Sales Tax
System for the 21 st Century" submitted on behalf of state and local government officials.
PASSED, APPROVED and ADOPTED this the 28th
February , A.D., 2000.
ATTEST:
11 //1s�`_c ( Ad
oUNG, '' - 1
TY S-3''RETARY
APPROVED AS TO FORM:
DARRIN M COKER
CITY ATTORNEY
3
TOM REID
MAYOR
day of