Resolution on Internet Sales Tax Equity and Compliance

Resolution Number 11-04.08

WHEREAS, the nature of commerce and technology has changed and will continue to change in such a way that establishing physical presence to successfully compete in the California retail marketplace, one of the premier marketplaces in the United States because of its wealth, diversity, and population of over 37 million people, can be achieved through a multiplicity of technologies, marketing relationships, and affiliations with marketers operating within the state; and

WHEREAS, old standards of attributing physical presence to determine a retailer's nexus to a particular state in such a way as to extend that state's jurisdiction to enforce its tax laws under the Commerce and Due Process Clauses of the United State Constitution no longer serve to accurately measure the economic activity of the modern internet-connected marketplace available to every Californian with an internet connection whether on their phone, tablet, or at their home or office; and

WHEREAS, the traditional legal measures of physical presence work to create an unlevel playing field between internet-based retailers and California-based retailers, who are rooted and invested in local communities, and those measures are imposed by law and not the economics of a changing marketplace, and serve to artificially starve local economies of precious resources for providing services such as schools, public safety, and infrastructure;

THEREFORE BE IT RESOLVED, that the California Democratic Party supports leveling the playing field between traditional brick and mortar retailers and internet-based retailers by adopting a state law standard of nexus which evaluates the physical presence attributed to a retailer in this state through facilities, personnel, related corporations, marketing affiliates, technological infrastructure, or any combination of these attributes; and

THEREFORE BE IT FURTHER RESOLVED, that the California Democratic Party supports expanding California statutes to the maximum extent permitted under the U.S. Constitution and supports executive branch administrative and legal action to enforce traditional and internet-based retailers' tax compliance.


Submitted by: Chris Parker 

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Adopted by the California Democratic Party\xe2\x80\xa8
At its 2011 State Convention
Sacramento Convention Center, Sacramento\xe2\x80\xa8\xe2\x80\xa8
May 1, 2011



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