HomeMy WebLinkAboutREP FC 253 06/02/1998 1996-1998 REPORT OF THE
COMMITTEE ON FINANCE
DATE: June 2, 1998 Re: Comm. No. 855/Res. No. 275-98
PLACE: Councilroom
TIME: 10:45 A.M.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 275-98, reports as follows:
Resolution No. 275-98, transmitted by Council Member Al Smith, via Communication No. 855,
dated May l4, 1998, requests the support of the National Association of Counties' (NACo)
position on the Cax amendment to the Internet Tax Freedom Act.
U.S. Representative Christopher Cox has drafted a new Internet tax bill that would be offered as
a substitute amendment to the Internet Tax Freedom Act (HR 1054) which is currently before
Congress. The new bill would impose athree-year moratorium on collecting six specific types
of state and local taxes that directly affect electronic commerce. Further, the bill would establish
a Commission on Internet Commerce to examine a number of issues involving sales and use
taxes on remote commerce, and submit proposed legislation to the President of the United States.
NACo has endorsed the Cox amendment to the Internet Tax Freedom Act (HR 1054).
In addition, NACo has gone on record opposing federal preemption of state and local taxing
authority, and opposing the establishment of an unlimited moratorium on state and local taxation
of electronic commerce. NACo has urged a delay of federal legislation until a thorough and
impartial study is completed on the taxation of electronic commerce and its impact on local
businesses.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 275-98
and recommends its adoption.
tci
Ayes Nors A&E EX
Respectfully submitted
CHUNG X
LEITHEAD-TODD x COMM~ITT~EE ON FINANCE
RAV - X C"'
SANTANCELO X
SMITH X
TvLER X AARON S.Y. CHUNG, CHAIR
vncorvc X FC REPORT NO. 253
ARAKAKI, s.o.n~. .ADOPTED: JUN-1~~