House Concurrent Resolution 24

A CONCURRENT RESOLUTION URGING CONGRESS TO PASS LEGISLATION AUTHORIZING TAXATION OF INTERNET SALES.

WHEREAS, three years ago, Congress and the White House supported and passed a temporary Internet sales and use tax moratorium, citing the need for a cooperative effort between state leaders and business executives to seek a solution to the Internet tax conundrum; and

WHEREAS, with the adoption of House Resolution 4328, the "Internet Tax Freedom Act" (ITFA), Congress authorized and created a committee to discuss possible ways to help local governments obtain sales and use taxes they are rightfully afforded without stifling the growth of Internet commerce; and

WHEREAS, the intent of the moratorium was to provide time for the committee and other relevant parties to develop an acceptable procedure for addressing Internet taxes; and

WHEREAS, under prior court decisions, states are unable to require the collection of sales taxes and use taxes by sellers making Internet sales unless such seller has a certain presence in a state; and

WHEREAS, sales and use taxes provide a large portion of the revenue needed to maintain essential government services so that imposing restrictions on the taxation of specific types of commercial transactions will result in millions of dollars of lost revenue and will unfairly burden the state with the task of delivering quality services using fewer dollars; and

WHEREAS, legislation authorizing the taxation of Internet access and Internet sales would foster competitive business practices and assist in creating a level playing field for all consumers; and

WHEREAS, the inability to tax Internet sales and collect the revenue associated therewith will leave state leaders facing the possibility of radical overhauls in state tax systems to make up for lost revenues:

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE STATE OF MISSISSIPPI, THE SENATE CONCURRING THEREIN, That we do hereby urge Congress to remove the moratorium limiting the collection of sales tax on Internet access and to take action necessary to authorize the taxation of sales made via the Internet.

BE IT FURTHER RESOLVED, That copies of this resolution be furnished to President George W. Bush, the President of the United States Senate, the Speaker of the United States House of Representatives and to the members of the Capitol Press Corps.