FC: Press releases from governors, retailers laud Internet taxes

[Declan McCullagh <declan () well com>]

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"Senate extends Net-tax moratorium for two years"
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Subject: e-Fairness Press Release
Date: Tue, 12 Nov 2002 11:41:05 -0500

1401 K Street, NW * Suite 1000 * Washington, DC  20005 * 202.789.2111 * 
202.789-4883 fax

IMMEDIATE RELEASE                               CONTACT: Nicole Rowe (202) 
789-2111
Tuesday, November 12, 
2002                                                        e-Fairness 
Coalition

Retail and Real Estate Congratulate States on
Effort to Unify State Sales Taxes

e-Fairness Coalition Appreciates Pro-Business Action

WASHINGTON, DC (November 12, 2002) The e-Fairness Coalition today applauded 
the Streamlined Sales Tax Implementing States (SSTIS) for responding to 
calls from Congress, the national Advisory Commission on Electronic 
Commerce (ACEC) and the business community to create a uniform and 
simplified state sales tax system.  Delegates from thirty-one states, plus 
the District of Columbia, in close cooperation with retailers and other 
business interests, are expected to finalize today an historic agreement 
that will enable state sales tax systems to adapt to the modern, digital 
economy.

Tripp Funderburk, Policy Advisor to the e-Fairness Coalition, said, Today 
the SSTIS delivers the message that they are working with the business 
community to create a more efficient, pro-business environment.  We are 
excited about their efforts and encourage state legislatures to quickly 
adopt the terms of the agreement.

The e-Fairness Coalition has long advocated a level playing field for the 
collection of sales taxes for both online and brick and mortar 
retailers.  The SSTIS Agreement is a giant step in the direction of 
fairness, and it will also greatly reduce tax complexity for American 
businesses, continued Funderburk.

The e-Fairness Coalition represents brick-and-mortar and on-line retailers, 
retail associations, publicly- and privately-owned shopping centers, the 
Newspaper Association of America, and members of the high-tech community 
such as Gateway and Vertical Net
###

Editors note: Reporters who want more information or to interview members 
of the SSTIS or the e-Fairness Coalition can call Nicole Rowe at (202) 
789-2111.
[]


MEMBERS LIST


Alabama Retail Association
American Booksellers Association
American Jewelers Association
Ames Department Stores
Atlantic Independent Booksellers Association
CBL & Associates Properties, Inc.
Circuit City Stores, Inc.
Electronic Commerce Association
First Washington Realty Trust, Inc.
Florida Retail Federation
Gateway Companies, Inc.
General Growth Properties, Inc.
Georgia Retail Association
Great Lakes Booksellers Association
Home Depot
Illinois Retail Merchants Association
International Council of Shopping Centers (ICSC)
International Mass Retail Association
(IMRA)
Kentucky Retail Association
Kimco Realty Corporation
K-Mart Corporation
Lowe's Companies, Inc.
Michigan Retailers Association
Mid-South Booksellers Association
Missouri Retailers Association
Mountains & Plains Booksellers Association
National Association of College Stores
National Association of Convenience Stores
National Association of Industrial and Office Properties (NAIOP)
National Association of Real Estate Investment Trusts (NAREIT)
National Association of Realtors (NAR)
National Community Pharmacists Association
National Retail Federation (NRF)
New England Booksellers Association
Newspaper Association of America
North American Retail Dealers Association (NARDA)
Northern California Independent Booksellers
Pacific Northwest Booksellers Association
Performance Warehouse Association
RadioShack Corporation
Regency Realty Corporation
Retailers Association of Massachusetts (RAM)
Sears Roebuck and Co.
ShopKo
Simon Property Group
Southeast Booksellers Association
Southern California Booksellers Association
South Carolina Merchants Association Target, Inc.
Taubman Centers, Inc.
The Gap, Inc.
The Macerich Company
The Musicland Group, Inc.
The Real Estate Roundtable (RER)
The Rouse Company
Variety Wholesalers
VerticalNet, Inc.
Virginia Retail Merchants Association
Wal-Mart
Weingarten Realty Investors
Westfield America, Inc.
(As of November 12, 2002)

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News Release


        FOR IMMEDIATE RELEASE
        November 12, 2002
        Contact:  Christine LaPaille or Jason Feuchtwanger,             202/624-5334
states pass streamlined sales tax agreement

WASHINGTONThe National Governors Association commended delegates from 32 
states, who approved today on a 31-0 vote, a model interstate agreement to 
streamline the nation's sales tax system.   The agreement now goes to each 
state, which must enact legislation to bring their state and local sales 
tax laws into conformity with the agreement.
The agreement, which would become operable as soon as 10 states enact 
legislation, would establish uniform definitions for taxable goods and 
would require participating states and local governments to have only one 
statewide tax rate for each type of product effective 2006.
"States, in cooperation with the business community, continue to make great 
progress," NGA Chairman Kentucky Gov. Paul E. Patton said. "This new 
agreement creates a more efficient system for both businesses and state and 
local governments."
"This is a 21st century system that will dramatically improve the morass 
that currently exists," Utah Gov. Michael Leavitt said.
It is estimated that a simplified system could save businesses millions of 
dollars in efficiencies by removing the burden of complying with existing 
laws, rules and regulations in thousands of jurisdictions. Implementation 
of the agreement would also create a level playing field between "remote" 
sellers which are not obligated to collect and remit sales taxes and Main 
Street retailers, which must collect sales taxes.
Currently, America's sales and use tax system, with 7,500 state and local 
taxing jurisdictions across the nation, is antiquated, complex, and 
cumbersome to businesses in today's New Economy. One of the problems with 
so many taxing jurisdictions is that they often have different laws or 
definitions of what is taxable. For example, a marshmallow might be defined 
as a food in one state, but as a candy - and therefore not taxed - in the 
next. That arrangement makes it very difficult for "remote" retailers, such 
as mail order companies and e-commerce companies, to calculate, collect, 
and remit sales taxes at varying rates to different state and local 
governments.
The effort, if successful, would be the first overhaul of the nation's 
sales tax policy in 40 years, and the first time states had acted together 
to significantly restructure the system.
A 1992 U.S. Supreme Court case ruled that states must first simplify their 
sales tax laws in order to require out-of-state retailers to collect and 
remit those levies. Congressional action or a decision by the high court 
would be needed to give states that authority.
In Nov. 2001, Congress extended for two years a moratorium on Internet 
access taxes. Those are the fees consumers pay to Internet Service 
Providers. The legislation does not apply to the collection of sales and 
use taxes.

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