For years, Internet experts have been forecasting an e-commerce storm. And while each year more and more companies and consumers conduct business online, the drizzle of electronic business has yet to develop into a torrential downpour.
But a little-discussed congressional act may prevent the system from ever moving beyond that gentle rain.
A little over a year ago, Congress created the 19-member commission charged with studying the impact of federal, state, local, and international taxation and tariffs on transactions using the Internet and Internet access. The committee, the Advisory Commission on Electronic Commerce, was created as part of Internet Tax Freedom Act.
But this group doesn’t plan to hide behind desks and issue recommendations. The ACEC is looking for your participation in the Internet taxation debate. The commission is asking interested parties to submit written comments with respect to the commission’s mission.
“The commission wants to ensure that all positions are represented and considered in the discussions,” says Virginia Gov. James S. Gilmore III, chairman of the ACEC. “On such an important issue, it is imperative that the commission is aware of the broad range of concerns.”
Among the issues the commission may look at:
- Barriers imposed in foreign markets on U.S. property, goods, services, or information engaged in e-commerce and on United States providers of telecommunications services;
- How the imposition of such barriers affects U.S. consumers, the competitiveness of U.S. businesses in foreign markets and growth of the Internet;
- The collection and administration of consumption taxes on e-commerce in the U.S. and abroad, the impact this has on the global economy and the relationship between the collection and administration of such taxes when using the Internet or not using the Internet;
- The impact of Internet access (particularly voice transmission) on the revenue base for taxes imposed under section 4251 of the Internal Revenue Code of 1986;
Model state legislation that:
- Provides uniform definitions of categories or property, goods, service or information subject to or exempt from sales and use taxes;
- Ensures that Internet access services, online services,and communications and transactions using the Internet, Internet access service or online services are treated in a tax and technology neutral manner relative to other forms of remote sales;
- Examines the effects of taxation (or absence of) on all interstate sales transactions, including those using the Internet, on retail businesses and on state and local governments. This examination may include a review of purchases from out-of-state sellers; and
- Studies ways to simplify federal, state and local taxes imposed on the provision of telecommunications services.
The commission has created a series of guidelines for those interested in offering the committee ideas on the e-tax matters. Submissions should follow these guidelines:
- All written comments and accompanying exhibits must be typed, double-spaced.
- Send one version of written comments electronically to [email protected]. Send 30 hard copies of all written comments to the address below.
- Comments must contain name, address, phone number, e-mail address (if available) and the capacity of the person submitting comments, as well as the names of any clients, persons, or organizations for which the comments are submitted.
- For comments exceeding two pages, an executive summary, not to exceed two pages, must accompany the submission.
Send submissions to Advisory Commission on Electronic Commerce, 3401 North Fairfax Drive, Arlington, VA 22201-4498.
All other comments should be submitted no later than Nov, 15, 1999. For further information, contact the commission at (703) 993-8049. The commission’s recommendations are due in Congress no later than April 21, 2000.
