AJR104: Joint Resolution Text

LRB-4440/1

PJD:jlg:hmh

1999 - 2000 LEGISLATURE

1999 Assembly JOINT RESOLUTION 104

February 17, 2000 - Introduced by Representatives Stone, Suder, Pettis, Hundertmark, Petrowski, Walker, Spillner, Jeskewitz, Urban, Albers, Sykora, Gunderson, Owens, F. Lasee, Kreibich and Klusman, cosponsored by Senators Roessler, Welch, Darling, Farrow and Schultz. Referred to Committee on Rules.

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

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

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

AJR104,1,11 Whereas, in 1998 Congress, in a move to protect the further development of this emerging technology and marketplace, instituted a 3-year moratorium on Internet taxation; and

AJR104,1,14 Whereas, as the moratorium draws to a close, state and local officials continue to push for taxation authority on the grounds that federal restriction constitutes a violation of states' rights; and

AJR104,2,4 Whereas, arguments for taxing electronic commerce ignore legal precedents based firmly in the U.S. Constitution and, according to rulings by the U.S. Supreme Court, attempts to impose state and local taxes on out-of-state Internet companies may represent a violation of the Commerce Clause; and

AJR104,2,6 Whereas, electronic commerce is considered an engine for future economic prosperity; and

AJR104,2,8 Whereas, electronic commerce provides entrepreneurs and small businesses the ability to expand their markets and reach out to customers across the globe; and

AJR104,2,10 Whereas, current tax policy could subject electronic commerce transactions to multiple taxation from multiple jurisdictions; and

AJR104,2,13 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 impose tax burdens on interstate commerce; and

AJR104,2,16 Whereas, efforts by state and local governments to apply existing tax policy to electronic commerce would violate constitutional limits on their taxing authority; and

AJR104,2,19 Whereas, absent these constitutional limitations, the ability of entrepreneurs and small businesses to compete in the global marketplace would be severely limited; and

AJR104,2,22 Whereas, the vast majority of electronic commerce transactions would be exempt under traditional existing sales tax policy, such as transactions for services or business-to-business transactions; and

AJR104,2,24 Whereas, state and local governments are currently experiencing a period of strong revenue growth and record budget surpluses; and

AJR104,3,2 Whereas, businesses operating in the global electronic marketplace are currently subject to a number of other state and local taxes; and

AJR104,3,5 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

AJR104,3,8 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

AJR104,3,11 Whereas, the current federal moratorium on Internet taxation has laid the foundation for the explosive and revolutionary growth of a vital sector of the economy; and

AJR104,3,13 Whereas, the current federal moratorium on Internet taxation will expire in 2001; and

AJR104,3,16 Whereas, Congress has empaneled the Advisory Commission on Electronic Commerce to study all aspects of electronic commerce and the Internet; now, therefore, be it

AJR104,3,19 Resolved by the assembly, the senate concurring, That the current federal moratorium on Internet taxation should be extended to allow a thorough examination of all aspects of electronic commerce; and, be it further

AJR104,3,22 Resolved, That the members of the senate and assembly believe the Advisory Commission on Electronic Commerce should examine the question of "whether" the Internet should be taxed, and not just "how" to tax the Internet; and, be it further

AJR104,4,2 Resolved, That members of the senate and assembly believe that unless there is a fundamental reform of existing tax policy within the constitutional limitations placed on state and local governments' taxing authority, the federal moratorium on Internet taxation should be extended indefinitely; and, be it further

AJR104,4,4 Resolved, That all state governments refrain from taxing electronic commerce and allow it to continue to grow in an unfettered environment; and, be it further

AJR104,4,10 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.

AJR104,4,11 (End)