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2000 Policy Positions
of the Southern Legislative Conference



The Internet has grown to become a reliable medium of conducting commercial transactions, and business-to-consumer sales through the Internet are projected to exceed $230 billion by the year 2002. With the enactment of the Internet Tax Freedom Act by the 105th Congress in 1998, a three-year moratorium banning the application of sales taxes on Internet sales continue to threaten state and local sales taxes – a long-standing non-federal resource for the provision of public services and infrastructure for citizens. Forty-six states depend on sales and use tax revenues, which comprise an average of one-third to over half of state revenues.


The Southern Legislative Conference of The Council of State Governments supports the adoption of a voluntary tax system for domestic commerce and ultimately global commerce. The Conference also supports a sales tax system that is fair and equitable in the treatment of Main-Street merchants and supports a sales tax system that maintains the federalist system and the sovereignty of the states in maintaining their own tax systems, allowing state and local governments to continue to collect state and local sales taxes on all purchases.

Further, sales and use taxes should be collected where they apply on all transactions regardless of the physical presence of the Internet vendor and be applied to the state and local government where the ultimate end-use of the product will take place.

Adopted by the Southern Legislative Conference, August 8, 2000, Biloxi, MS

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