[Congressional Record Volume 146, Number 47 (Thursday, April 13, 2000)]
[Extensions of Remarks]
[Page E564]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


         INTRODUCTION OF BILL TO AMEND INTERNET TAX FREEDOM ACT

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                        Thursday, April 13, 2000

  Mr. CONYERS. Mr. Speaker, I am pleased to join with Chairman Hyde, 
Commercial and Administrative Law Subcommittee Chairman Gekas, and 
Ranking Member Nadler in introducing the ``Internet Tax Reform and 
Reduction Act of 2000.''.
  As the Ranking Member of the Judiciary Committee, I have been proud 
of our Committee's bipartisan accomplishments in helping to maintain 
our Nation's leadership in the information economy. These include 
modernizing our patent and copyright laws, insuring the availability of 
trained workers, and our passage last Congress of the Internet Tax 
Freedom Act.
  Today, I join with my colleagues in introducing the Internet Tax 
Reform and Reduction Act of 2000 as the starting point in our process 
of considering possible legislative responses to the issue of the 
applicability of State and local taxes on the Internet. The legislation 
we are introducing today reflects the views of number of Advisory 
Committee on Electronics Commerce Members led by Virginia Governor 
James Gilmore.
  I believe it is important that their views be converted into 
legislative language so that the Congressional review process can 
commence. I intend to work with Chairman Hyde and Representatives Gekas 
and Nadler in seeing that the other members of the Commission, 
including Utah Governor Michael Leavitt, are given the same 
opportunity. I also expect that the Judiciary Committee's Subcommittee 
on Commercial and Administrative Law will hold a series of hearings 
during which all interested parties, including State and local elected 
officials, the technology community, and retailers will be able to 
offer their views.
  The bill we are introducing today would amend the Internet Tax 
Freedom Act to impose a permanent moratorium on State and local taxes 
on Internet Access. It would also extend for 5 years the duration of 
the moratorium applicable to multiple and discriminatory taxes on 
electronic commerce and impose a 5 year moratorium on sales of digital 
goods and products. Further, the bill would set forth factors for the 
determination of jurisdictional nexus by the States with regard to 
Internet transactions, encourage the States to adopt a simplified sales 
and use tax, and set up an advisory commission on uniform sales and use 
taxes.
  The issue of the application of State and local taxes on the Internet 
is one of the most important matters facing the Judiciary Committee and 
the Congress. The Internet has led our robust economy into the 21st 
century. Its use in both the commercial and consumer sectors has 
skyrocketed, spurring the development of new businesses, products and 
services, and new and less expensive research and communications 
methods. At the same time, the Internet poses many new and novel State 
and local taxation issues. The Internet is not a partisan issue by any 
means, and I am happy to join with my colleagues as we begin to address 
this critical issue.

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