CC Resolution 9384
RESOLUTION NO. 9384
A RESOLUTION SUPPORTING COMPROMISE PROPOSAL TO
THE CALIFORNIA INTERNET TAX FREEDOM ACT
AB 1614
WHEREAS, AB 1614, The California Internet Tax Freedom Act, sponsored by
Assemblyman Ted Lempert is pending in the California State Assembly; and
WHEREAS, AB 1614, The California Internet Tax Freedom Act, prohibits any
tax or fee directly or indirectly on, or in connection with, the Internet, or any interactive
computer services, with specified exceptions preserving existing tax authority of the State
and its political subdivisions; and
WHEREAS, local governments have expressed concerns that the current
legislation could be interpreted to reduce or eliminate current taxes and fees collected by
local government to support essential City services; and
WHEREAS, local governments have opposed legislation that does not provide
for a mechanism to fully protect existing revenue sources to local governments, including
sales and use tax, utility franchise fees, etc.; and
WHEREAS, State and local leaders recognize that businesses, especially Internet
businesses that transcend state borders, cannot be expected to keep tract of different rules
for 6,000 taxing jurisdictions and there is a need to significantly simplify the sales tax
systems; and
WHEREAS, the local governments support a sunset on the moratorium that
restricts the ability of the State and any of its political subdivisions to develop a
comprehensive, long term, and equitable solution to streamline the outdated and
burdensome sales tax system to ensure that American business, government, and
consumers are well positioned to prosper in the twenty-first century global marketplace;
and
WHEREAS, industry representatives have expressed concerns that, without
legislation, the State and any of its political subdivisions may impose any tax or fee
"directly or indirectly on, or in connection with" the Internet, any interactive computer
service which would be considered either new or discriminatory on Internet services; and
WHEREAS, both local government and industry representatives have identified
two areas of agreement- preservation of the unrestricted growth of the Internet and
protection of existing City revenue sources; and
WORD/MJ/H :/Resol ution/Internet
Resolution Supporting Compromise.. .AB 1614
June~, 1998
Page 2
WHEREAS, local government and industry representatives have jointly drafted a
compromise proposal in the nature of a substitute to the September 15, 1997 version of
AB 1614, The California Internet Tax Freedom Act.
NOW, THEREFORE, BE IT RESOLVED that the City of Campbell supports
the compromise proposal and urges Assemblyman Lempert to amend the existing AB
1614 by substituting the draft language attached to this resolution.
PASSED AND ADOPTED this ~day of June, 1998 by the following roll
call vote:
AYES:
Councilmembers: Conant, Furtado, Dougherty, Watson
NOES:
Councilmembers: None
ABSENT:
Councilmembers: Dean
APPROVED:
ATTEST:
t20
/i..-y1-:~ ..l5.(/-(,,-,,-
Anne Bybee, City Clerk
WORD/MJ/H:/Resolution/lnternet