Re: Support of the Internet Tax Moratorium and Equity Act (S. 1567)

Dear Senator:

The Association for Financial Professionals (AFP) wishes to share its views with you on legislation that will determine the future tax status of Internet commerce and remote sales. We urge your support of the Internet Tax Moratorium and Equity Act (S. 1567), sponsored by Senators Michael Enzi and Byron Dorgan.  The moratorium on new, multiple and discriminatory taxes on Internet sales expired on October 21^st, and its expiration leaves a vacuum that may result in activities by individual jurisdictions that are not conducive to development of the Internet.  We believe that S. 1567 provides an enabling environment for growth of commerce on the Internet while state and local governments simplify and unify their complex sales tax structures.

AFP represents almost 15,000 treasury and finance professionals employed by over 5,000 corporations and other organizations.  Organizations represented by our members are drawn generally from both the Fortune 1000 and middle-market companies in a wide variety of industries, including manufacturing, retail and technology.  These organizations are responsible for paying and collecting substantial amounts of tax on sales through the Internet and more traditional channels.  Our members have an active interest and sizable stake in the outcome of the debate regarding the taxation of Internet commerce and remote sales.

In a May 4, 2001, letter to Senators Byron Dorgan and Ron Wyden, AFP recommended that Congress adopt legislation that will:

1. Extend the current moratorium on new, multiple and discriminatory taxes on Internet
    sales for an additional four years through October 21, 2005.

2. Encourage state and local governments to simplify and unify their complex sales tax
    structures

3. Allow states that have adopted the simplified, uniform sales tax structure to impose
   sales taxes on purchases by their residents, regardless of the location of the seller
   or whether the purchase was made at a store, by telephone, by mail, or by the
   Internet.

4. Ensure that compliance with the simplified sales tax structure does not increase the
    burden placed on merchants.

S. 1567 largely incorporates these recommendations and we urge you to support this legislation.  Frank Curran of the AFP staff is available for discussion of this issue.  Mr. Curran can be reached at (301) 961-8827.

Sincerely,

Alvin C. Rodack, CCM
Associate Treasurer
The Ohio State University
Chair
AFP Government Relations Committee

R. Ross Guyer, AAP
Senior Deputy State Auditor
West Virginia State Auditor's Office
Chair, Payments & Technology Task Force
AFP Government Relations Committee