Resolution Establishing a national framework for state and local governments on the taxation of digital goods and services
WHEREAS, according to the Pew Internet and American Life Project, African Americans continue to be among the most active users of the mobile web as more and more commerce moves to online platforms; and
WHEREAS, digital goods and services are online purchases that are downloaded directly by, or services that are provided electronically to, consumers across the United States; and
WHEREAS, state policymakers recognize that the continued deployment of broadband infrastructure and adoption of broadband services is vital to economic growth and digital goods and services are a critical driver of the rapidly growing 21st Century digital economy; and
WHEREAS, current state and local tax laws are based on 20th Century sales transactions and need to be updated to align with the 21st century digital economy, wherein commerce occurs and is transacted over global broadband networks; and
WHEREAS, without a national framework multiple states could claim the right to tax the same digital transaction putting consumers at risk for multiple and discriminatory taxation; and
WHEREAS, imposing multiple and discriminatory taxes on consumers will disadvantage online commerce and slow this rapidly growing segment of the economy; and
WHEREAS, establishing a national framework will clearly identify which state and local jurisdiction can tax digital transactions providing certainty to consumers, providers required to collect such taxes and state and local governments seeking to tax such goods and services; now
THEREFORE BE IT RESOLOVED, The National Foundation for Women Legislators' (NFWL) National Policy Committee on Business, Housing & Economic Development calls on Congress to establish a national framework that will provide certainty and uniformity for state and local governments in the taxation of digital goods and services, while protecting consumers from multiple and discriminatory taxation and supporting the continued growth of the digital economy; and
BE IT FURTHER RESOLVED, this NFWL Committee urges states and localities to refrain from measures that may put constituents at risk for multiple and discriminatory taxation of digital goods and services.