Resolution To Support Federal Efforts to Require Internet-Only Retailer to Collect Sales Tax

Resolution 11-11.11 

Whereas, In 1992 the Supreme Court ruled that on-line retailers that did not have a physical nexus (presence) in a state were not required to collect sales tax in order to give competitive advantage to this new industry, and


Whereas, On-line retailers like Amazon, the largest on-line retailer in the world, no longer need this competitive advantage and mislead the public who then think they are not responsible for paying this sales tax and deprive California of this needed revenue and put California's brick and mortar and on-line merchants who do collect sales tax at a severe competitive disadvantage resulting in a loss of revenue, employment opportunities and property taxes, and


Whereas, other on-line retailers such as Barnes and Noble, Wal-Mart, Best Buy and Target do collect on-line sales tax , and


Therefore be it resolved, The California Democratic Party supports Federal efforts that will correct this problem by creating a simple nationwide system of state and local sales tax collection evenhandedly applied to all sellers, no matter their business model, location or level of remote sales. and


Therefore be it resolved, The California Democratic Party requests that the Democratic delegation to Congress do everything within its means to will overturn the "physical presence" requirement and support a system that is fair and does not unduly burden small merchants and send this Resolution to our State and Congressional delegations and issue a press release about this action.


Sponsor: Carole Lutness, 38th AD


Adopted by the California Democratic Party
At its November 2011 Executive Board Meeting
Crowne Plaza Hotel, Burlingame
November 20, 2011




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