SENATE CONCURRENT RESOLUTION NO. 17
(By Senators Snyder, Caldwell, Fanning, Minard, Rowe, Minear and
Unger)
(Originating in the Committee on Interstate Cooperation; reported
March 15, 2001.)
Requesting the Joint Committee on Government and Finance, in
cooperation with the Department of Tax and Revenue, conduct a
study to review and consider the feasibility of enacting model
legislation known as the "Uniform Sales and Use Tax
Administration Act".
Whereas, In October, 1998, Congress enacted the Internet Tax
Freedom Act which prohibits states from: (1) Imposing sales taxes
on internet access charges; and (2) imposing a special tax on
internet transactions or businesses that is not generally paid or
collected by other vendors; and
Whereas, The Internet Tax Freedom Act is to expire in October,
2001, but legislation has been introduced to extend the same and
interested parties are seeking to amend the federal law to exempt
some or all transactions facilitated by the internet from sales and
use taxes imposed by state and local governments; and
Whereas, In response to the growing adverse effect that
internet sales, mail order sales, telemarketing sales and other
forms of "long-distance sales" are having on state and local use
tax collections throughout the country, and the fact that over
7,500 state and local jurisdictions impose a sales tax in this
country, often resulting in onerous nonuniform reporting and
collecting procedures, the Streamlined Sales Tax Project,
consisting of various states, was formed; and
Whereas, The State of West Virginia has been a participating
state in the Streamlined Sales Tax Project since July 11, 2000; and
Whereas, The first phase of the Streamlined Sales Tax Project
has produced model legislation for enactment by all of the states
and a model sales/use tax administration agreement; and
Whereas, The National Conference of State Legislatures has
also produced model legislation for enactment by states; and
Whereas, In the State of West Virginia, the state sales and
use taxes collectively raise over $950 million annually; and
Whereas, Any action taken by Congress to limit sales and use
tax collections could adversely impact the revenues and,
ultimately, the economy of this state; and
Whereas, The Legislature needs to study and consider the
feasibility of adopting model legislation and to support the effort
of states to demonstrate that they have the ability and the will to work together to streamline sales and use tax administration for
both remote sellers and "main street" vendors before Congress takes
action which negatively impacts a primary source of revenue for
state and local governments; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance, in
cooperation with the Department of Tax and Revenue, study, review
and consider the feasibility of enacting a model Uniform Sales and
Use Tax Administration Act or some other legislation to simplify
and provide uniformity for vendor collection responsibilities while
protecting state revenue sources; and, be it
Further Resolved, That the Joint Committee on Government and
Finance report to the regular session of the Legislature, 2002, on
its findings, conclusions and recommendations, together with drafts
of any legislation necessary to effectuate its recommendations;
and, be it
Further Resolved, That the expenses necessary to conduct this
study, to prepare a report and to draft necessary legislation be
paid from legislative appropriations to the Joint Committee on
Government and Finance.