Resolution 16-039 Support for the Remote Transactions Parity Act

CITY OF HOMER
HOMER, ALASKA

Reynolds

RESOLUTION 16-039

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, EXPRESSING SUPPORT FOR THE REMOTE TRANSACTIONS PARITY ACT.

WHEREAS, A 1992 Supreme Court case (Quill v. North Dakota) left State and local governments unable on their own accord to enforce sales tax collections and remittance by out-of-state catalog and online sellers; and

WHEREAS, As a result, billions of State and local tax dollars are lost each year by allowing this tax-free platform to exist while brick-and-mortar retailers collect sales taxes from customers; and

WHEREAS, This creates a competitive disadvantage to main street shopkeepers who are rooted and invested in the community, especially at a time when local governments are trying to encourage job creation and economic development; and

WHEREAS, The Supreme Court of the United States also declared in the same 1992 Quill v. North Dakota case that Congress could exercise its authority under the Commerce Clause of the U.S. Constitution to decide “whether, when and to what extent” the states may require sales tax collection on remote sales; and

WHEREAS, The Remote Transactions Parity Act does not impose a new tax but rather provides a mechanism by which states and local governments can collect a tax that is already legally required in states with a sales tax; and

WHEREAS, The City of Homer uses tax revenue to provide vital public safety and public works programs, fixing aging infrastructure and supporting parks, community centers and libraries; and

WHEREAS, The City of Homer faces unprecedented budget shortfalls and has had to and will continue to cut back services in many of these areas due to the low price of oil that the state economy is dependent upon; and

WHEREAS, With the tremendous growth in online sales, the  ability to collect remote transactions sales tax would play an important supportive role in the City of Homer’s provision of critical community services.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council urges members of the Alaska Congressional delegation to support the Remote Transactions Parity Act of 2016 (H.R.2775) for the fair, uniform, simplified, and constitutional collection of state and local sales taxes; and further affirms that, through passage of the legislation, Congress will:

a)  foster consistent standards for in-state and remote sellers who are obligated to                                                                                                          collect state and local sales and use taxes, providing equal, consistent, and fair  treatment among traditional brick-and-mortar retailers, brick-and-click retailers, catalogue retailers, and Internet-only retailers; and

b) ensures parity at the point of sale.

BE IT FURTHER RESOLVED that the Homer City Clerk is instructed to transmit a copy of this resolution to the Alaska Federal Delegation.

PASSED AND ADOPTED by the Homer City Council this 11th day of April, 2016.

CITY OF HOMER

________________________
MARY E. WYTHE, MAYOR
 

ATTEST:

______________________________
JO JOHNSON, MMC, CITY CLERK

Fiscal Note: N/A