Bob Wise on Technology
Former Democratic Governor; previously Representative (WV-2)
I have directed my Office of Technology to launch an e-government initiative. We will identify - from the consumer’s perspective - the government services that can most easily be carried out on line. If you’re a customer of a state agency, write to me - or send me an email - and tell me how we can serve you better. West Virginians expect and need better service from government. They deserve it. And they will get it from this Administration.
The nation’s governors have a strong and unified message to Congress: deal fairly with Main Street retailers, consumers, and local governments. In a letter sent to all members of Congress late Friday, 44 governors said:
If you care about a level playing field for Main Street retail businesses and local control of states, local 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. To do otherwise perpetuates a fundamental inequity and ignores a growing problem.The current moratorium on Internet access taxes, like those consumers pay to Internet service providers, and multiple and discriminatory taxes is scheduled to expire in October. The moratorium does not apply to sales taxes.
Currently, sales and use taxes are owed on all online transactions, but states are prohibited from requiring “remote sellers” to collect and remit those levies. A 1992 US Supreme Court decision said states can only require sellers that have a physical presence in the same state as the consumer to collect so-called use taxes. In instances when a seller does not have a physical presence, consumers are required to calculate and remit the taxes owed to their home states at the end of the year. The problem is most people are unaware that they’re supposed to pay, and states lack an effective enforcement mechanism. Online and catalog sellers, thereby, have a significant price advantage over Main Street businesses that must collect a sales tax on all transactions.
The loophole creates serious budget problems for schools, states, and local governments. A study estimated that states could lose as much as $14 billion by 2004 if they are unable to collect existing taxes on Web-based sales. Nearly half of state revenues come from sales taxes.
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Earl Ray Tomblin
Joe Manchin III
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NY-25:Ann Marie Buerkle