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<br /> <br /> NACo: Legislatiw Affairs - Fact Shits - Internet http://w .~.org/policy/factsrmterfs.ht <br /> <br /> a;u <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Legislative avgn <br /> NACo Fact Sheets <br /> Bulletin <br /> LegislaUve Proposed Internet Taxation Bills <br /> Priorffits <br /> Two House subcommittees approved legislation in October to place a <br /> six-year moratorium on any new state and local taxes on electronic <br /> commerce, including the Internet. Many tax experts say that the latest <br /> version of the bill (H.R. 1054), as approved by the House <br /> Advocacy <br /> Docuw,nts subcommittees, would also prohibit a number of existing <br /> telecommunications, franchise, gross receipts, business and corporate <br /> taxes. The full House Commerce and Judiciary Committees are not <br /> R Bill Tracking expected to mark up legislation until next year. <br /> f' NACo, The Senate Commerce Committee approved similar legislation (S. 442) <br /> Lohwsts on November 4. While a number of Senators, including chairman John <br /> McCain (R-Ariz.), indicated the bill needs more clarification before <br /> f Steering going to the floor, the committee agreed by a 14 to 5 vote to report it. <br /> Committees Senate Majority Leader Trent Lott (R-Miss.) has stated his concerns <br /> about fairness and equity issues between "Main Street" businesses and <br /> e America" companies on the internet who would be exempt from taxation. Lott <br /> County urged that the legislation be redrafted to address many of the concerns <br /> Platlomi raised by state, county and city officials about federal preemption of <br /> state and local taxes. <br /> NACo passed a resolution at the Annual Conference opposing federal <br /> preemption of state and local taxing authority and establishment of an <br /> unlimited moratorium on state and local taxation of electronic <br /> commerce. NACo urged delay of federal legislation until a thorough and <br /> impartial study is completed on the taxation of electronic commerce and <br /> its impact on local businesses. A joint industry-government study under <br /> the auspices of the National Tax Association is underway. The group <br /> has met twice and will meet again in early February. <br /> <br /> The following point and counterpoint is helpful in understanding some <br /> of the arguments being made by some electronic and <br /> telecommunications companies <br /> <br /> Internet Taxation: Myths and Realities <br /> <br /> MYTH: States and localities are looking to the Internet as a "cash <br /> cow" to afford additional public expenditures. <br /> <br /> <br /> 1 of 3 05/01/98 15:17:5 <br />