CC Resolution No. 98-119RESOLUTION NO. 9~-119
RESOLUTION SUPPORTING COMPROMISE PROPOSAL TO
THE CALIFORNIA INTERNET TAX FREEDOM ACT
AB 1614
WHEREAS, AB 1614, The California Internet Tax Freedom Act, sponsored by
Assemblyman Ted Lempert is pending in the California State Assembly; and
WHEREAS, AB 1614, The California Internet Tax Freedom Act, prohibits any tax or fee
directly or indirectly on, or in connection with, the Internet, or any interactive computer services,
with specified exceptions preserving existing tax authority of the State and its political
subdivisions; and
WHEREAS, local govermments have expressed concerns that the current legislation
could be interpreted to reduce or eliminate current taxes and fees collected by local government
to support essential City services; and
WHEREAS, local governments have opposed legislation that does not provide for a
mechanism to fully protect existing revenue sources to local governments, including sales and
use tax, utility franchise fees, etc.;
WHEREAS, State and local leaders recognize that businesses, especially Internet
businesses that transcend state borders, cannot be expected to keep track of different rules for
6,000 taxing jurisdictions, and there is a need to significantly simplify the sales tax systems; and
WHEREAS, the local governments support a sunset on the moratorium that restricts the
ability of the State, and any of its political subdivisions, to develop a comprehensive, long term,
and equitable solution to streamline the outdated and burdensome sales tax system to ensure that
American business, government, and consumers are well positioned to prosper in the twenty-first
century global marketplace; and
WHEREAS, industry representatives have expressed concerns that, without legislation,
the State, and any of its political subdivisions, may impose any tax or fee "directly or indirectly
on, or in connection with" the Internet, any interactive computer service which would be
considered either new or discriminatory on internet services; and
WHEREAS, local government and industry representatives have jointly drafted a
compromise proposal to be considered as an amendment to AB 1614, and is presenting the
compromise language as an alternative to AB 1614, The California Internet Tax Freedom Act.
NOW, THEREFORE, BE IT RESOLVED that the City of Cupertino supports the
compromise proposal and urges Assemblyman Lempert to amend the existing AB 1614 by
substituting the draft language attached to this resolution.
Resolution No. 98-119 Page
PASSED AND ADOPTED at a regular adjourned meeting of the City Cotmcil of the City
of Cupertino this 18m day of May, 1998, by the following vote:
Vote
Members of the City Council
AYES: BURNETT, DEAN, JAMES,
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
STATTON, CHANG
ATTEST:
City Clerk j d~
J
APPROVED:
Mayor, City of CupertinoX