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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and any of its political subdivisions to develop a comprehensive, long term, and equitable solution to streamline the outdated and burdensome sales tax system to ensure that American business, government, and consumers are well positioned to prosper in the twenty-first century global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