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To: Sam Citron who wrote (23913)10/30/1998 3:49:00 PM
From: IceShark  Respond to of 164684
 
Forgive my ignorance, but didn't Clinton sign into federal law a restriction preventing states from imposing taxes on internet commerce for a certain period of time?

Sam, Thanks for the compliment. The recent moratorium law was directed at stopping new internut taxes for awhile. As in states dreaming up a tax scheme along the lines of what they have done to telephones or hotels, i.e. slap on a "911" like fee of a couple bucks per line for internet connections. It has nothing to do with pre-existing sales or use taxes applicable to transactions which happened to originate via the internet (as opposed to a catalog and voice telephone conversation).

Your misconception on the applicability is pretty common, so don't feel too ignorant. -g- Remember the key issue is use tax, which historically has not been enforced except for high value items like cars, boats, airplanes, etc. My argument is that technology will finally make it cost effective for the States to go after use tax obligations that, heretofore, would have cost more to collect than the tax itself.

Regards, Ice



To: Sam Citron who wrote (23913)10/30/1998 4:21:00 PM
From: Glenn D. Rudolph  Respond to of 164684
 
Thanks for unusually well-reasoned and thorough reply. Forgive my ignorance, but
didn't Clinton sign into federal law a restriction preventing states from imposing taxes on
internet commerce for a certain period of time?


Only for ISP providers.

Glenn