HomeMy WebLinkAboutCity Council Resolution 98-12 RESOLUTION NO. 98-12
OF THE CITY COUNCIL OF THE-CITY OF SARATOGA
RESOLUTION SUPPORTING COMPROMISE PROPOSAL TO
THE CALIFORNIA INTERNET TAX FREEDOM ACT
AB 1614
WHEREAS, AB 1614, The California Internet Tax Freedom Act. sponsored by
Assemblymen Ted Leepert Is pending in the California State Assembly; and
WHEREAS, AB 1614. The Ce/~mla Interact Tax Freedom Act, prohibits any tax or fee
directly or indirectly on, or in connection with, the Interact. or any Interactive computer
services. with specified exee~ns preserving existing tax author'm/of the State and its
political subdivisions; and
WHEREAS, Io~1 governments have expressed concerns that the current legislation
could be Interpreted to reduce Or eliminate current taxes and fees collected by local
government to support essential CIty servioes; and '
WHEREAS, local governments have opposed legislation that does not provide for a
mechanism to fully protect exiitRing revenue sources to local governments. Including
sales and use tax, utility franchise fees, etc.;
WHEREAS. State and local leaders recegnlze that businesses, especially Internet
businesses that transcend state borders. cannot be expected to keep track of different
rules for 6,000 taxing Jurisdictions and there is a need to Significantly simplify the sales
tax systems; and
WHEREAS, the local governments support a sunset on the moratorium that restricts the
ability of ~e State and any of its political subdivisions to develop a comprehensive. long
term, and equitable solution to :abeamline the outdated and burdensome sales tax
system to ensure that Amedcen buslness. government, and consumers are well
positioned to prosper in the twenty-first century global marketplace; and
WHEREAS, Industry representatives have expressed concerns that, without legislation.
the State and any of its political subdivisions may impose any tax or fee "directly or
indirectly on, or in conneclion with" the Interact, any Interactive computer service which
would be cons'tiered either new or dis~dminatory on Internet services; and
WHEREAS, both local government end industry representative have ldentffie~l two
areas of agreement - preservation of the unrestricted growth of the Intemet and
protection of existing City revenue sources; and
WHEREAS, local government end industry representatives have Jointly drafted ·
compromise proposal in the iure of · substitute to the September 15, 1997 version of
AB 1614, The Ce//fomta Internet Tax Freedom Act.
NOW, THEREFORE, BE IT RESOLVED that the City of ..S~rat_oga supports the
compromise proposal and urges Assemblyman Leepert to amend the existing AB 1614
by substituting the draft language attached to this .resolution.
The above and foregoing resolution was passed and adopted by the
Saratoga City Council at a meeting held on the 20th day of May,
1998, by the following vote:
AYES: Councilmembers ~acobs and Moran
Deputy City Cler~