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HomeMy WebLinkAboutResolution 039-2013 Resolution No. 39-13 A Resolution for Local Government Support for Federal Legislation on Streamlined Sales and Use Tax and Opposition to Additional Requirements Mandating State Collection of Telecommunications Taxes Whereas, rapid growth in interstate commerce has complicated state and local government efforts to collect legally authorized sales and use taxes on remote transactions representing a significant loss of state and local government resources; and Whereas, the University of Tennessee Center for Business and Economic Research estimates that state and local governments lost$11.4 billion in sales tax on e-commerce in 2012 with South Dakota losing an estimated $60 million; and Whereas, the Streamlined Sales Tax Project (SSTP) adopted as its original mission the following statement: "The Streamlined Sales Tax Project will develop measures to design, test and implement a sales and use tax system that radically simplifies sales and use taxes"; and Whereas, Congress is considering legislation to provide states with authority to require out-of-state sellers to collect and remit sales and use taxes on remote transactions attributable to those states; and Whereas,the proposed requirements for state collection and administration of local telecommunications taxes are contrary to local control and propose "federalizing" traditionally local tax matters; and Whereas, the City of Brookings opposes federal efforts to curb the ability of local officials to collect local telecommunications taxes and oppose federal proposed requirements for state collection and administration; Now, Therefore, Be It Resolved that City of Brookings supports efforts by states to streamline and simplify their sales and use tax collection and administration systems; and Be It Further Resolved that the City of Brookings commends Congress on recognizing the importance of the issue and introducing legislation that would grant states the authority they need to require sellers, regardless of location, to collect sales and use taxes owed to them; and Be It Further Resolved that Sales Tax Revenue from e-commerce is needed to replace federal funding for local government infrastructure that has been eliminated. Passed and approved this 23rd day of April, 2013. CITY OF BROOKINGS, SD - �A'�J 2 g Ak A Tim Reed, Mayor ,tf ornes, City Clerk