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HomeMy WebLinkAbout176-17 RESOLUTIONWest Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 176-17 File Number: 2017-0436 INTERNET/ONLINE SALES TAX SUPPORT: A RESOLUTION TO SUPPORT FEDERAL AND STATE LEGISLATION TO ENSURE THE PROPER ASSESSMENT AND COLLECTION OF SALES TAX FROM ALL INTERNEVONLINE SALES THEREBY CREATING A FAIR AND FREE MARKET FOR ALL BUSINESSES AND CONSUMERS REGARDLESS OF THE LOCATION OF THE BUSINESS FROM WHICH THE PURCHASE WAS MADE WHEREAS, the City of Fayetteville recognizes that legislation frequently referred to as the Marketplace Fairness and Remote Transactions Parity Act ("This Legislation") is being considered by the United States Congress; and WHEREAS, Senate Bill 140 of 2017 was considered by the Arkansas General Assembly during the 2017 regular legislative session, but not passed; and WHEREAS, this legislation would give states the authority to enforce local and state taxes that are already in place and owed by out-of-state online retailers; and WHEREAS, all businesses, regardless of their physical location, should be required to collect and remit state and local sales tax; and WHEREAS, the playing field, as it currently stands, favors out-of-state internet retailers that exploit a pre- internet loophole, allowing them to evade collecting state and local sales tax even though they sell the same products in the same communities as local merchants do; and WHEREAS, as it currently stands, stores with a local retailer must collect sales tax while online stores do not, thereby enabling online stores to undercut local retail prices; and WHEREAS, this legislation is not a new tax or a tax increase, but rather enables states to collect taxes that are already due; and Page 1 Printed on 8116117 Resolution: 176-17 File Number.' 2017-0436 WHEREAS, this legislation would generate more sales, pay more sales tax to the state treasury, encourage more local retailers, create jobs for local workers and infuse more money into local economies throughout the State of Arkansas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby urges members of the Arkansas Congressional Delegation and the Arkansas Legislature to work for passage and vote in favor of legislation requiring the collection and remittance of state and local sales tax by all retailers thus making for competition in a true free market and giving every business an equal opportunity to compete, innovate and create jobs. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby urges Governor Asa Hutchinson to call for a special session as quickly as possible to address this most important issue for the benefit of the state's local retail businesses and its citizens. PASSED and APPROVED on 8/15/2017 Attest: P Sondra E. Smith, City Clerk H.d.� J// -It aFAYET7 P.:•�7� Page 2 Printed on 8116117 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2017-0436 Agenda Date: 8/15/2017 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: D. 11 INTERNET/ONLINE SALES TAX SUPPORT: A RESOLUTION TO SUPPORT FEDERAL AND STATE LEGISLATION TO ENSURE THE PROPER ASSESSMENT AND COLLECTION OF SALES TAX FROM ALL INTERNET/ONLINE SALES THEREBY CREATING A FAIR AND FREE MARKET FOR ALL BUSINESSES AND CONSUMERS REGARDLESS OF THE LOCATION OF THE BUSINESS FROM WHICH THE PURCHASE WAS MADE WHEREAS, the City of Fayetteville recognizes that legislation frequently referred to as the Marketplace Fairness and Remote Transactions Parity Act ("This Legislation") is being considered by the United States Congress; and WHEREAS, Senate Bill 140 of 2017 was considered by the Arkansas General Assembly during the 2017 regular legislative session, but not passed; and WHEREAS, this legislation would give states the authority to enforce local and state taxes that are already in place and owed by out-of-state online retailers; and WHEREAS, all businesses, regardless of their physical location, should be required to collect and remit state and local sales tax; and WHEREAS, the playing field, as it currently stands, favors out-of-state internet retailers that exploit a pre-internet loophole, allowing them to evade collecting state and local sales tax even though they sell the same products in the same communities as local merchants do; and WHEREAS, as it currently stands, stores with a local retailer must collect sales tax while online stores do not, thereby enabling online stores to undercut local retail prices; and WHEREAS, this legislation is not a new tax or a tax increase, but rather enables states to collect taxes that are already due; and WHEREAS, this legislation would generate more sales, pay more sales tax to the state treasury, encourage more local retailers, create jobs for local workers and infuse more money into local economies throughout the State of Arkansas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: City of Fayetteville, Arkansas Page 1 Printed on 811612017 File Number: 2017-0436 Section 1. That the City Council of the City of Fayetteville, Arkansas hereby urges members of the Arkansas Congressional Delegation and the Arkansas Legislature to work for passage and vote in favor of legislation requiring the collection and remittance of state and local sales tax by all retailers thus making for competition in a true free market and giving every business an equal opportunity to compete, innovate and create jobs. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby urges Governor Asa Hutchinson to call for a special session as quickly as possible to address this most important issue for the benefit of the state's local retail businesses and its citizens. City of Fayetteville, Arkansas Page 2 Printed on 8/16/2017 I -A - Legistar ID No.: U� AGENDA REQUEST FORM FOR: Council Meeting of August 15, 2017 FROM: Mayor Lioneld Jordan ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A RESOLUTION TO SUPPORT FEDERAL AND STATE LEGISLATION TO ENSURE THE PROPER ASSESSMENT AND COLLECTION OF SALES TAX FROM ALL INTERNET/ ONLINE SALES THEREBY CREATING A FAIR AND FREE MARKET FOR ALL BUSINESSES AND CONSUMERS REGARDLESS OF THE LOCATION OF THE BUSINESS FROM WHICH THE PURCHASE WAS MADE GENDA: Assistant City Attorney Blake Pennington (as to form) % 7 D to Date RESOLUTION NO. A RESOLUTION TO SUPPORT FEDERAL AND STATE LEGISLATION TO ENSURE THE PROPER ASSESSMENT AND COLLECTION OF SALES TAX FROM ALL INTERNET/ONLINE SALES THEREBY CREATING A FAIR AND FREE MARKET FOR ALL BUSINESSES AND CONSUMERS REGARDLESS OF THE LOCATION OF THE BUSINESS FROM WHICH THE PURCHASE WAS MADE WHEREAS, the City of Fayetteville recognizes that legislation frequently referred to as the Marketplace Fairness and Remote Transactions Parity Act ("This Legislation") is being considered by the United States Congress; and WHEREAS, Senate Bill 140 of 2017 was considered by the Arkansas General Assembly during the 2017 regular legislative session but was not passed; and WHEREAS, this legislation would give states the authority to enforce local and state taxes that are already in place and owed by out-of-state online retailers; and WHEREAS, all businesses, regardless of their physical location, should be required to collect and remit state and local sales tax; and WHEREAS, the playing field, as it currently stands, favors out-of-state internet retailers that exploit a pre-internet loophole, allowing them to evade collecting state and local sales tax even though they sell the same products in the same communities as local merchants do; and WHEREAS, as it currently stands, stores with a local retailer must collect sales tax while online stores do not, thereby enabling online stores to undercut local retail prices; and WHEREAS, this legislation is not a new tax or a tax increase, but rather enables states to collect taxes that are already due; and - WHEREAS, this legislation would generate more sales, pay more sales tax to the state treasury, encourage more local retailers, create jobs for local workers and infuse more money into local economies throughout the State of Arkansas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby urges members of the Arkansas Congressional Delegation and the Arkansas Legislature to work for passage and vote in favor of legislation requiring the collection and remittance of state and local sales tax by all retailers thus making for competition in a true free market and giving every business an equal opportunity to compete, innovate and create jobs. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby urges Governor Asa Hutchinson to call for a special session as quickly as possible to address this most important issue for the benefit of the state's local retail businesses and its citizens. PASSED and APPROVED this 15' day of August, 2017. APPROVED: ATTEST: By; By: LIONELD JORDAN, Mayor SONDRA SMITH, City Clerk/Treasurer August 9, 2017 , Mayor Lioneld Jordan/City Council City of Fayetteville 113 W Mountain Fayetteville, AR 72701 Dear Mayor Jordan/City Council: Fayetteville Chamber of Commerce I write to express univocal support of the Fayetteville Chamber for the City of Fayetteville to pass the resolution to support federal and state legislation to ensure the proper assessment and collection of sales tax from all intemet/online sales regardless of the location of the business from which the purchase was made. The goal is to ensure a fair and free market for all businesses and to level the playing field between brick -and -mortar and online stores. City of Fayetteville has 615 retail stores employing 4,976 Full Time Equivalents (FTEs) as of June, 2017. These brick and mortar businesses made. investments in our city, employ our residents, and contribute to the tax base of our city. As such, it is imperative that we support them by giving them a tool to compete equitably with online vendors. Currently, almost all online vendors do not collect and remit sales tax from Arkansas consumers thereby allowing their products to cost less than if sales taxes are included in the computation. When the Marketplace Fairness and Remote Transactions Parity Act passes at the national level, Fayetteville will receive new online sales tax revenues that could be invested in improving schools, streets, safety, healthcare, and the overall living environment of our community. Fayetteville stores will gain more customers as online customers lose the sales tax "savings" and decide to buy products to take home immediately. As always, we thank you for your continuous leadership to find solutions to challenges facing our great city. Yours truly, 1 Steve Clark, IOM President & CEO Nlounmir. Ste 300 P.(). Box 216 [ d.vetter'i€ ti..'t I 6 FEL 479, 521. 1 _;0 FAX =1711. 521.1791 ` rrrvi..+fivetter ille:�.c ��n