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2000-004RESOLUTION NO. 2000-04 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA REQUESTING CONGRESS TO ADOPT LEGISLATION PROVIDING FOR SALES AND USE TAX FAIRNESS AMONG ALL RETAIL MERCHANTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Aventura ("City") believes that it is in the nation's interest for Congress to ensure a level playing field among online, mail order, and main street businesses; and WHEREAS, the use of new communications technologies, including the Internet, as a way to conduct sales of goods and services is accelerating; and WHEREAS, out-of-state sales of goods conducted via the Internet, mail order and phone, under many circumstances, are not subject to collect existing sales and use taxes imposed by the states and local governments in which the purchaser of such goods resides; and WHEREAS, the inequity in price experienced by not requiring the collection of taxes on the sales of such goods creates a competitive disadvantage and unequal treatment between local merchants and those who sell from electronics stores; and WHEREAS, Congress has the ability to change federal laws to provide for a fair and equitable tax system for all retailers by requiring out-of-state mail order and electronic vendors to collect and remit state and local sales taxes; and WHEREAS, the state of Florida and its local governments depend upon existing sales and excise taxes to generate much needed state and local tax revenue, and out- of-state sales that are not taxed have an adverse impact on local infrastructure and on Resolution No. 2000-04 Page 2 the continued survival of local retail businesses in our cities, villages and towns; and WHEREAS, these revenues support crucial public services, such as police protection, fire protection, education, transportation services, public infrastructure, park and recreation services, community services and other services; and WHEREAS, out-of-state vendors utilize some of the most advanced technology available to conduct their business electronically or from remote locations; and WHEREAS, ninety-nine percent of the goods and services purchased over the Internet are bought using electronics money transfers, such as through the use of credit cards, which pre-establishes the ability to identify and collect taxes in an non- discriminatory ands efficient manner; and WHEREAS, without congressional action, the Internet and catalog sales will remain substantially a tax-free zone, thereby depriving state and local government of revenues required to provide essential public services; and WHEREAS, the Advisory Commission on Electronics Commerce, empanelled to draft legislation for consideration by Congress, and to propose a simplified system of state and local taxation, will soon conclude their work; and WHEREAS, the City of Aventura believes that any proposal adopted by Congress must provide for the following principals: (1) equal treatment of all sales transactions, irrespective of the transaction method used, and (2) a federal law authorizing state and local governments to require out-of-state sales be subject to sales and use taxes, collection and remittance, and Resolution No. 2000-04 Page 3 (3) protection from federal preemption of state and local authority to determine their own tax policies, and (4) cooperative efforts to simplify state and local sales and use tax systems and the compliance burdens those place on out-of-state sales. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF AVENTURA, FLORIDA, THAT: Section 1. The City of Aventura opposes any federal legislation which would continue the current sales and use tax inequities by making permanent the current moratorium or other limitation on state and local authority to tax Internet sales transactions. Section 2. The City of Aventura supports federal legislation that would simplify the tax systems of state and local governments to facilitate the collection of required state and local sales and use taxes from mail order, Internet and on-line sales transactions. Section 3. The City of Aventura joins with the National League of Cities in urging the Advisory Commission on Electronic Commerce and members of Congress to enact legislation authorizing state and local governments to establish and collect legally due sales and use taxes on goods and services sold through any transactional electronics medium, regardless of the actual or transient location of the business transaction location, and to remit those taxes to the purchaser's state, and require Resolution No. 2000-0__4 Page 4 transaction location, and to remit those taxes to the purchaser's state, and require states to distribute tax revenues to cities, villages and towns or other unit of local government pursuant to precedent and applicable state law. Section 4. A copy of this resolution shall be provided to the National League of Cites, the Advisory Commission on Electronic Commerce, Florida Congressional Delegation, Florida Governor Jeb Bush, and interested parties. Section 5. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution was offered by Commissioner ]~oge~'$-]~be,'t , who moved its adoption. The motion was seconded by Commissioner noZzber~ , and upon being put to a vote, the vote was as follows: Commissioner Jay R. Beskin Commissioner Ken Cohen Commissioner Harry Holzberg Commissioner Jeffrey M. Perlow Commissioner Patricia Rogers-Libert Vice Mayor Arthur Berger Mayor Arthur I. Snyder PASSED AND ADOPTED this 4th day of January, 2000. ARTHUR I. SNYDER, MAYOR ATTEST: TERESA M. SOROKA, CMC/AAE CITY CLERK APPROVED AS TO LEGAL SUFFICIENCY: CITY ATTORNEY