FC: National Tax Association on Internet taxes

[Declan McCullagh <declan () well com>]

"Internet Tax Panel Backs a Single Rate for Each State"
Bloomberg News (09/09/99)

The National Tax Association (NTA) has released a report that
addresses the issue of Internet taxes by recommending a uniform
stales tax rate for all states.  However, the recommendation is
dependent on agreements being reached on other issues concerning
state and local taxes, according to the NTA electronic commerce
group.  "We like the vote we took on one rate per state, but
that's contingent on a lot of things we never got to," said Mark
Nebergall, a co-author of the report and member of the Software
and Information Industry Association.  The NTA electronic
commerce group also includes members from America Online and
other companies.   The tangle of state and local tax laws poses a
serious compliance problem for retailers.  The NTA report
discusses three possible solutions to this problem: that
multi-state retailers register, file, and pay taxes in one state
only; that electronic technology be used to manage payment of
sales and use taxes; and that each state take responsibility for
collecting taxes.  Multi-state retailers are hit especially hard
by complying with the current tax system, according to a report
from Ernst & Young.  National Tax Association members will
testify next week when the Advisory Commission on Electronic
Commerce meets in New York.



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