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US Conference of Mayors and National Association of Counties Sue to Block Internet Taxation Panel

Strategic Insights

— 1 min read

A lawsuit has been filed by the US Conference of Mayors and National Association of Counties (NaCO) to prevent the Advisory Commission on Electronic Commerce (ACEC) from meeting and developing recommendations for Internet taxation policy. The commission's composition, with eight representatives of state and local government interests and eight pro-electronic commerce business interests, has been deemed unbalanced by the plaintiffs. The defendants in the lawsuit include prominent business leaders such as James Barksdale, John Sidgmore, and Robert Pittman, among others.

Key Takeaways:

  • The US Conference of Mayors and National Association of Counties (NaCO) filed a lawsuit against the Advisory Commission on Electronic Commerce (ACEC) to block their recommendations for Internet taxation policy.
  • The lawsuit claims that the ACEC's composition is unbalanced, favoring electronic commerce business interests over state and local government interests.
  • The defendants in the lawsuit include prominent business leaders such as James Barksdale, John Sidgmore, and Robert Pittman, among others.
  • The commission's composition requires eight representatives of state and local government interests and eight pro-electronic commerce business interests.
  • Opponents of state and local involvement in electronic commerce argue that different local jurisdictions could claim taxes on Internet purchases, leading to double or triple taxation, which would kill electronic commerce as a business overall.
  • Supporters of the Tax Freedom Act would treat Internet sales like catalog sales, which infuriates state and local interests.
  • The lawsuit was filed in a DC Federal District Court to prevent the commission from meeting.
  • The governor of Virginia, James Gilmore, is expected to take the chairmanship of the commission when it meets, but has stated that the lawsuit will not get far if congressional leadership makes changes to the commission.

Statistics:

  • 16 appointees and three government officials make up the ACEC.

Sources:

  • Newsbytes, "U.S. Mayors and Counties Sue to Block Internet Taxation Panel", by Robert MacMillan, March 8, 1999.
  • Wires Online, "Legal, Business", (19990308).
  • http://www.newsbytes.com.

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