Amendment ASA1-AJR104

LRBs0409/1

PJD:wlj:jf

1999 - 2000 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, TO 1999 ASSEMBLY JOINT RESOLUTION 104

March 14, 2000 - Offered by Representatives Stone and Suder.

AJR104-ASA1,1,2 Relating to: urging a study of whether electronic commerce should be taxed and the extension of the federal moratorium on the taxation.

AJR104-ASA1,1,5 Whereas, America's current unprecedented economic expansion is being driven, in large part, by the explosive growth of Internet companies and electronic commerce; and

AJR104-ASA1,1,8 Whereas, the robust development of electronic commerce has attracted the attention of government officials committed to establishing tax authority over Internet transactions; and

AJR104-ASA1,1,12 Whereas, in 1998 Congress, in a move to protect the further development of this emerging technology and marketplace, instituted a 3-year moratorium on state taxation of charges for Internet access and discriminatory taxes on electronic commerce; and

AJR104-ASA1,1,14 Whereas, electronic commerce is considered an engine for future economic prosperity; and

AJR104-ASA1,2,2 Whereas, electronic commerce provides entrepreneurs and small businesses the ability to expand their markets and reach out to customers across the globe; and

AJR104-ASA1,2,4 Whereas, current tax policy could subject electronic commerce transactions to multiple taxation from multiple jurisdictions; and

AJR104-ASA1,2,8 Whereas, the U.S. Supreme Court has consistently ruled that the U.S. Constitution places strict limits on the ability of state and local governments to require a seller to collect sales and use taxes on goods sold in the state unless the seller has nexus in the state; and

AJR104-ASA1,2,11 Whereas, absent these constitutional limitations, the ability of entrepreneurs and small businesses to compete in the global marketplace would be severely limited; and

AJR104-ASA1,2,14 Whereas, significant amounts of electronic commerce transactions would be exempt under traditional existing sales tax policy, such as transactions for services or business-to-business transactions; and

AJR104-ASA1,2,16 Whereas, state and local governments are currently experiencing a period of strong revenue growth and record budget surpluses; and

AJR104-ASA1,2,18 Whereas, businesses operating in the global electronic marketplace are currently subject to a number of other state and local taxes; and

AJR104-ASA1,2,21 Whereas, independent studies have concluded that the current revenue loss to state governments from the nontaxation of the Internet is less than one-half of 1%; and

AJR104-ASA1,2,24 Whereas, the average working American family already faces the highest tax burden in our nation's history, paying close to 40% of its income in local, state and federal taxes; and

AJR104-ASA1,3,2 Whereas, the Internet Tax Freedom Act has laid the foundation for the explosive and revolutionary growth of a vital sector of the economy; and

AJR104-ASA1,3,3 Whereas, the Internet Tax Freedom Act will expire in 2001; and

AJR104-ASA1,3,6 Whereas, Congress has empaneled the Advisory Commission on Electronic Commerce to study all aspects of electronic commerce and the Internet; now, therefore, be it

AJR104-ASA1,3,9 Resolved by the assembly, the senate concurring, That the Internet Tax Freedom Act should be extended to allow a thorough examination of all aspects of electronic commerce; and, be it further

AJR104-ASA1,3,12 Resolved, That the members of the senate and assembly support study by the Advisory Commission on Electronic Commerce on the issues of tax and technological neutrality among all forms of commerce; and, be it further

AJR104-ASA1,3,15 Resolved, That members of the senate and assembly support efforts geared toward tax simplification and comprehensive tax reduction wherever possible, including the extension of the Internet Tax Freedom Act; and be it further

AJR104-ASA1,3,18 Resolved, That all state governments refrain from imposing new taxes on electronic commerce and allow it to continue to grow in an unfettered environment; and, be it further

AJR104-ASA1,3,24 Resolved, That the assembly chief clerk shall provide a copy of this joint resolution to the president and secretary of the U.S. senate, to the speaker and clerk of the U.S. house of representatives, to each member of the congressional delegation from this state, to the chief clerk of each state legislative body in this country and to governor of each state attesting the adoption of this joint resolution by the 1999 legislature of the state of Wisconsin.

AJR104-ASA1,3,25 (End)