R-744 - 04/25/2000 - TAX - ResolutionsRESOLUTION 2000- TX -S -R- 744
A RESOLUTION PERTAINING TO
RETAIL SALES TAXES ON INTERNET SALES
WHEREAS, legislation has been introduced in United States Congress which, if enacted,
would permanently bar the collection of taxes on the retail sale of domestic and foreign goods
purchased over the Internet or through electronic commerce, and
WHEREAS, businesses currently add local and state sales taxes to the price of all retail
goods sold in the Village of Oak Brook and the permanent exemption of Internet sales from retail
sales taxes would place traditional brick and mortar businesses in an unfair competitive position as
their goods would be effectively higher priced to the consumer, and
WHEREAS, there is no national sales tax and this legislation, if passed, would not affect
federal revenues negatively, and
WHEREAS, retail sales taxes currently account for more than seventy percent (70 %) of annual
revenues to the General Corporate Fund of the Village of Oak Brook, which is a non -home rule
community pre - empted by Illinois law from levying a real estate tax without voter approval, and
WHEREAS, the growth of Internet sales is certain to increase in the future, and
WHEREAS, the proposed legislation could result in a weakened tax base from which
municipal services are funded in the Village of Oak Brook, and
WHEREAS, there is no compelling need to extend or make permanent the current moratorium at
this time since it is not scheduled to expire until October 2001, and
WHEREAS, the legislation endorsed by the congressional leadership neither addresses the
competitive disadvantage issue for local retailers nor the collection of taxes on remote sales for state and
local governments, which are the two most dominant issues in this debate
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows
Section 1 That the United States Congress should ensure that there is a level playing field
for businesses by not enacting any ban, whether permanent or temporary, on state and local
government sales and use tax levies on the retail sales of goods purchased over the Internet
Section 2 That the Village President and Board of Trustees are concerned that this unfair
competitive advantage provided to Internet vendors could result in reduced sales tax revenues which
are used to support critical services in the Village
Section That it is the position of the Village President and Board of Trustees that the
government of the United States should work with state governments to ensure a uniform method of
tax collections on Internet sales.
SectiQn 4 That the Village Clerk be and is hereby directed to forward copes of this resolution
to U S. Senators Durbin and Fitzgerald, U.S Representatives Hyde and Biggert, and all members of
the Commerce Committee of the United States Senate and the Commerce Committee of the United
States House of Representatives.
PASSED AND APPROVED this 25th day of April 2000 by the President and Board of Trustees
of the Village of Oak Brook, DuPage and Cook Counties, Illinois, according to a roll call vote as follows
Ayes: Trustees Butler, Caleel, Craig, Kenny, McInerney and Savino
Nays. None
Absent None
Abstain. None
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Village President
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