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1 RESOLUTION NO. 10.499 113
2
3 A RESOLUTION TO ENDORSE LEGISLATION THAT
4 REQUIRES THE COLLECTION OF GROSS RECEIPTS AND
s COMPENSATING USE TAXES ON SALES MADE THROUGH
6 THE INTERNET; AND FOR OTHER PURPOSES.
7
3 WHEREAS, the federal government, in an attempt to expand the use of internet
9 communications and business opportunities, has suggested policies that would limit or prohibit
10 local governments from assessing gross receipts or compensating use taxes on the sale of
11 products through the internet, and legislation also could be considered by the United States
12 Congress that would require mail order firms and internet transactions to collect state and local
13 gross receipts and compensating use taxes; and
14 WHEREAS, these taxes are not being collected on items bought from out of state firms;
is and
16 WHEREAS, the competition to small businesses within a city that must pay these taxes,
17 as opposed to large, multi -state firms, is already tough enough without further allowing mail
13 order firms and internet transactions the unfair advantage of avoiding this tax obligation; and
19 WHEREAS, the internet infrastructure is a complimentary and viable part of the future
20 of any government infrastructure, but tax policies like the ones under discussion should not be
21 permitted to detract from the current infrastructure of cities and towns.
22 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
23 THE CITY OF LITTLE ROCK, ARKANSAS:
24 SECTION 1. The Board of Directors of the City of Little Rock, Arkansas, encourages
23 the United States Congress to consider input from state and local governments on the question
26 of taxation of sales through the internet, and the applicability of properly passed gross receipts
27 and compensating use taxes to such internet sales.
28 ADOPTED: MARCH 16, 1999
29 ATTEST: APPR
30 <2.j ' z u %
31 Robbie Hancock, City Clerk Jim E a' ey, Mayor
32
33 APPROVED AS TO LEGAL FORM:
34 t
36 V'A
36 Thomas M. Carpenter, Ci Attorney