In an open letter to Governor James Gilmore, (R-VA), chairman of the Advisory Commission on Electronic Commerce, the Direct Marketing Association, the Association for Interactive Media, and 16 online marketing entities advocated lowered-tax positions on Internet access and opposition to Internet sales taxes.
The letter was made public yesterday, coinciding with the fourth and final meeting of the advisory commission, a task force charged with making recommendations to Congress regarding Internet commerce regulation and taxation. The commission met yesterday and today in Dallas.
The letter attributes the growth of e-commerce to "the moratorium on burdens affiliated with Internet taxation", and advocates:
* Opposition to taxes on Internet access
* Reduction of tax burdens on telecommunications carriers
* Support of the principles outlines in the Internet Tax Freedom Act
* Opposition to additional taxes on Internet sales
* Definition of remote sales tax collection based on the remote sellers' physical presence
* Advocacy of the above at the international level
* Establishment of nexus protection for business activity taxes
The panel was convened as a result of the Internet Tax Freedom Act. Passed in October 1998, the Act also put a three-year hold on Internet access or sales taxes while concerns surrounding them were debated.
Chances of any damaging suggestions being put before Congress, however, are small: Suggestions must carry at least two-thirds of the 19-member commission to be passed along. Since convening, a number of proposals have been set forth, with no consensus behind any one of them. The commission, which will end its meeting today, has until April 21 to submit its recommendations, if any, to Congress.
In addition to the DMA and AIM, the letter was signed by The Walt Disney Company; CDNOW; MicroWarehouse Inc.; The Alta Vista Company; Brandwise.com; Spree.com; Coldwater Creek; Ordertrust; Winebid.com; Feld Entertainment; Warrantybynet; Bridge Entertainment; Bishop Partners; Harari.org; United America Advertising; and Intelitec.
