January 19, 2001, 12:00 AM

E-commerce Tax Committee Member Asks Clinton To End Stalemate

A member of the federal panel on e-commerce taxes has asked President Clinton to reverse the administration's opposition to a compromise proposal. Dean Andal, chairman of California's state Board of Equalization and a member of the U.S. Advisory Commission on Electronic Commerce, sent a letter to Clinton on Thursday, urging him to instruct the comission's three federal appointees to support a compromise package drafted by the panel's six corporate members.

The 19-member commission plans to vote on the proposal at its meeting in Dallas on March 20 and 21.

The compromise proposal calls for:

  • extending the current moratorium on taxing Internet access charges for five years;
  • eliminating all existing taxes on Internet access charges;
  • clarifying the business activity taxing authority of the states;
  • prohibiting sales and use taxes on software, music and videos
  • eliminating the 3% federal excise tax for telecommunications providers;
  • encouraging state and local governments to simplify their sales tax systems and develop a uniform interstate tax statute;
  • codifying the Supreme Court's "substantial physical presence" test for determining when an interstate seller is required to collect sales and use taxes.

comments powered by Disqus

Advertisement

Advertisement

Advertisement

From IR Blogs

FPO

Adrien Henni / E-Commerce

eBay and Russian Post accelerate cross-border deliveriies

EBay and Russian Post have signed a memorandum of cooperation aimed at reducing the time ...

FPO

Ernie Diaz / E-Commerce

Can Tencent win the mobile commerce battle with Alibaba?

The two Chinese Internet giants are increasingly encroaching on each other’s territories. A Beijing-based marketing ...

Advertisement