[Federal Register Volume 64, Number 199 (Friday, October 15, 1999)]
[Notices]
[Pages 55894-55895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-27008]
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Notices
Federal Register
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This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
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Federal Register / Vol. 64, No. 199 / Friday, October 15, 1999 /
Notices
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ADVISORY COMMISSION ON ELECTRONIC COMMERCE
Invitation for Proposals Related to Electronic Commerce Taxes and
Notice of Meeting
The purpose of this announcement is to invite interested parties to
submit proposals to the Commission related to state and local taxation
of Internet transactions and electronic commerce. Details pertaining to
the next meeting of the Commission are also included.
The Advisory Commission on Electronic Commerce was established by
Public Law 105-277 to conduct a thorough study of federal, state, local
and international taxation and tariff treatment of transactions using
the Internet and Internet access and other comparable intrastate,
interstate or international sales activities. The Commission is to
report its findings and recommendations to the Congress no later than
April 21, 2000.
The Commission met in June in Williamsburg, Virginia, and in
September in New York City. Notice is hereby given that the Commission
will meet December 14-15, 1999, in San Francisco, California. The
location and hours of the meeting and the agenda will be published when
available on the Commission's Web site listed below. The final
Commission meeting is scheduled for March 20-21, 2000, in Dallas,
Texas.
Criteria/Standards for the Tax Treatment of Electronic Commerce and
Other Remote Transactions
The Advisory Commission on Electronic Commerce was tasked with the
responsibility of studying the tax treatment of electronic commerce
transactions. The Commission held its second meeting in New York City
on September 14-15, 1999. During this meeting, the Commission moved to
establish a set of benchmarks concerning the taxation of electronic
commerce, and to solicit proposals from the public that would seek to
simplify state and local sales and use taxes, among other benchmarks.
While a number of criteria were initially proposed during this New York
meeting, the meeting concluded with the understanding that those
criteria could be amended or supplemented and that additional criteria
would be added immediately thereafter.
During the weeks following the conclusion of the meeting in New
York, Commissioners proposed numerous changes, and the list of criteria
was refined and expanded. Where possible, the Commission combined
similar criteria and omitted duplicate suggestions to narrow the list.
This document reflects the priorities of the Commissioners with
regard to the criteria that should be incorporated in the proposals to
be selected and presented before the Commission at its December meeting
in San Francisco. The decision of the Commission to use a specific list
of criteria to evaluate plans to simplify state and local sales and use
taxes should not be interpreted as a decision to adopt a plan to
implement taxation of Internet-based transactions. While these criteria
should not be considered a litmus test, each criterion will be
important to certain Commissioners as they evaluate each proposal that
is submitted.
The Report Drafting Subcommittee will evaluate all proposals and
make recommendations to the full Commission on those proposals that
should be accompanied by a formal presentation at the December 14 and
15, 1999 meeting in San Francisco.
What follows is the final list of criteria expressed in the form of
questions. This form was used to encourage submitters not only to state
their proposals, but also, briefly, to state how their proposals
satisfy the underlying criteria. This list reflects the criteria as
originally presented in New York, and encompasses all the revisions and
additions that were subsequently added by individual Commissioners. All
18 criteria should be addressed in proposals submitted to the
Commission for consideration. Any estimates or opinions must be
substantiated. Should the Commission ultimately decide to recommend a
streamlined system for the collection of sales and use taxes, such a
system will be evaluated in the context of the following criteria.
Criteria for Evaluation of Alternative Proposals
Simplification
1. How does this proposal fundamentally simplify the existing
system of sales tax collection (Some examples may be: common
definitions, single rate per state, clarification of nexus standards,
and so forth)?
2. How does this proposal define, distinguish, and propose to tax
information, digital goods, and services provided electronically over
the Internet?
3. How does this proposal protect against onerous and/or multiple
audits?
Taxation
4. Does this proposal impose any taxes on Internet access or new
taxes on Internet sales?
5. Does this proposal leave the net tax burden on consumers
unchanged? (Does it impose an obligation to pay taxes where such an
obligation does not exist today? Does it reduce or increase state and
local telecommunication taxes? Does it reduce or increase taxes,
licensing fees, or other charges on services designed or used for
access to or use of the Internet?)
6. Does the proposal impose any tax, licensing or reporting
requirement, collection obligation or other obligation or fee on
parties other than those with a physical presence in a particular state
or political subdivision?
7. What features of the proposal will impact the revenue base of
federal, state, and local governments?
Burden on Sellers
8. Does this proposal remove the financial, logistical, and
administrative compliance burdens of sales and use tax collections from
sellers? Does the proposal include any special provisions with respect
to small, medium-sized, or start-up businesses?
Discrimination
9. Does the proposal treat purchasers of like products or services
in as like a manner as possible through the implementation of a policy
or system that does not discriminate on the basis of how people buy?
10. Does the proposal discriminate against out-of-state or remote
vendors or
[[Page 55895]]
among different categories of such vendors?
International
11. How does this proposal affect U.S. global competitiveness and
the ability of U.S. businesses to compete in a global marketplace?
12. Can this proposal be scaled to the international level?
13. How does this proposal conform to international tax systems,
including those that are based on source rather than destination? Is
this proposal harmonized with the tax systems of America's trading
partners?
Technology
14. Is the proposal technologically feasible utilizing widely
available software to enable tax collection? If so, what are the
initial costs and the costs for required updates, and who is to bear
those costs?
Privacy
15. Does the proposal protect the privacy of purchasers?
Sovereignty/Local Government Autonomy
16. Does this proposal respect the sovereignty of states and Native
Americans?
17. How does this proposal treat local governments' autonomy and
their ability to raise a greater or lesser amount of revenues depending
on the needs and desires of their citizens?
Constitutional
18. Is the proposal constitutional?
Proposals must be no longer than eight single-spaced pages in
length and must be submitted in 30 copies to the Commission's offices
listed below. In addition, electronic copies of submissions must be
sent on a 3\1/2\ inch computer disc or CD-ROM in Microsoft Word, Excel
or Power Point format, addressed to the Commission's staff offices at
the location listed below. The deadline for receipt of all materials is
November 15, 1999. Anyone submitting a proposal should be prepared to
formally present the proposal at the Commission's meeting in San
Francisco upon the Commission's request.
In addition to the above, interested persons are reminded of the
general invitation to provide comments in writing to the Commission.
Written comments should be provided in accordance with guidelines
published in the Federal Register on August 13, 1999 (64 FR 44183).
Comments of a brief nature may be addressed to the Commission
through its Web site at www.ecommercecommission.org.
Records shall be kept of all Commission proceedings and shall be
available for public inspection given adequate notice at the
Commission's offices at 3401 North Fairfax Dr., Arlington, Virginia
22201-4498. In addition, records of meetings including agendas,
transcripts and minutes are posted as soon as available on the
Commission's Web site.
A listing of the members of the Commission and details concerning
their appointment were published in the Federal Register on June 9,
1999, at 64 FR 30958.
Heather Rosenker,
Executive Director.
[FR Doc. 99-27008 Filed 10-14-99; 8:45 am]
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