US Governors Push For Internet Taxation

The Washington Post is reporting that a majority of US Governors will urge lawmakers this week to reject the extension of the moratorium on Internet access taxes unless it is tied to the opportunity for states to create a streamlined system to collect online sales tax.

The moratorium, which has been in place since the fledgling days of the Internet to help foster e-commerce growth, is set to expire October 21, 2001.

"If you care about a level playing field for main street retail businesses, and local control of state's governments and schools, extend the moratorium on taxing Internet access only with authorization for the states to streamline and simplify the existing sales tax system," a draft of the letter says.

The issue is quite complex and has challenged lawmakers to rethink the entire concept of transactional taxes in the 21st century.

At issue for the states is the recognition that an estimated $13 billion in uncollected sales tax revenue in the next couple of years will force them to make cuts in spending on education and other vital state services.

At issue for businesses is the fact that there are over 7,500 state and local taxing jurisdictions in the United States, making it onerous and often impossible for small e-tailers to adequately manage the tax collecting and reporting burden.

Sources close to the issue feel that because of time constraints, the moratorium on Internet access Tax will likely be extended.

You may like these other stories...

Cybersecurity is no longer the domain of an organization's IT staff. It's moved to the boardroom, and in a big way. Accountants and financial managers may have been thinking it's just the province of the tech...
You probably don't want to think about how many times you access the File menu in Excel 2010 or 2013. Personally I think Excel 2010 has the best possible File menu arrangement, other than having Print Preview grafted...
Following other recent high-profile hacking events, investigators discovered yesterday that hackers broke into the draft work paper files of several famous CPA firms. Revealing images of the scantily clad documents have been...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.