Bill 897

                    Current Status

Bill Number:                       897
Type of Legislation:               Concurrent Resolution CR
Introducing Body:                  Senate
Introduced Date:                   19980114
Primary Sponsor:                   Passailaigue 
All Sponsors:                      Passailaigue 
Drafted Document Number:           res1549.elp
Residing Body:                     House
Current Committee:                 Invitations and Memorial
                                   Resolutions Committee 24 HIMR
Subject:                           Commerce, Congress to exercise
                                   jurisdiction over Internet by
                                   establishing moratorium on tax
                                   imposition, Businesses

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

House   19980218  Introduced, referred to Committee        24 HIMR
Senate  19980217  Adopted, sent to House
Senate  19980212  Committee report: Favorable              12 SLCI
Senate  19980114  Introduced, referred to Committee        12 SLCI

COMMITTEE REPORT

February 12, 1998

S. 897

S. Printed 2/12/98--S.

Read the first time January 14, 1998.

To whom was referred a Concurrent Resolution (S. 897), to memorialize Congress to exercise congressional jurisdiction over commerce over the Internet, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

J. VERNE SMITH, for Committee.

A CONCURRENT RESOLUTION

TO MEMORIALIZE CONGRESS TO EXERCISE CONGRESSIONAL JURISDICTION OVER COMMERCE OVER THE INTERNET BY ESTABLISHING A MORATORIUM ON THE IMPOSITION OF EXACTIONS THAT WOULD INTERFERE WITH THE FLOW OF COMMERCE VIA THE INTERNET.

Whereas, as a massive global network spanning not only state but international borders, the Internet is inherently a matter of interstate and foreign commerce within the jurisdiction of the United States Congress under Article I, Section 8 of the United States Constitution; and

Whereas, even within the United States, the Internet does not respect state lines and operates independently of state boundaries, as addresses on the Internet are designed to be geographically indifferent and Internet transmissions are insensitive to physical distance and can have multiple geographical addresses; and

Whereas, because transmissions over the Internet are made through packet-switching, it is impossible to determine with any degree of certainty the precise geographic route or endpoints of specific Internet transmissions and infeasible to separate intrastate from interstate and domestic from foreign Internet transmissions; and

Whereas, inconsistent and inadministrable taxes imposed on Internet activity by state and local governments threaten not only to subject consumers, businesses, and other users engaged in interstate and foreign commerce to multiple, confusing, and burdensome taxation, but also to restrict the growth and continued technological maturation of the Internet itself, and to call into question the continued viability of this dynamic medium; and

Whereas, because the tax laws and regulations of so many jurisdictions were established long before the Internet or interactive computer services, their application to this new medium in unintended and unpredictable ways threatens every Internet user, access provider, vendor, and interactive computer service provider; and

Whereas, the electronic marketplace of services, products, and ideas available through the Internet or interactive computer services can be especially beneficial to senior citizens, the physically challenged, citizens in rural areas, and small businesses; and

Whereas, the electronic marketplace also offers a variety of uses and benefits for educational institutions and charitable organizations; and

Whereas, consumers, businesses, and others engaging in interstate and foreign commerce through the Internet or interactive computer services could become subject to more than thirty thousand separate taxing jurisdictions in the United States alone; and

Whereas, the consistent and coherent national policy regarding taxation of Internet activity, and the concomitant uniformity, simplicity, and fairness that is needed to avoid burdening this evolving form of interstate and foreign commerce can best be achieved by the United States exercising its authority under Article I, Section 8, Clause 3 of the United States Constitution. Now, therefore,

Be it resolved by the Senate, the House of Representatives concurring:

That the General Assembly of the State of South Carolina does hereby memorialize the Congress of the United States to exercise Congressional jurisdiction over commerce over the Internet by establishing a moratorium on the imposition of exactions that would interfere with the flow of commerce via the Internet.

The General Assembly further memorializes the Congress to require the Secretaries of the Treasury, Commerce, and State, in consultation with appropriate committees of the Congress, consumer and business groups, states and political subdivisions thereof, and other appropriate groups, to undertake an examination of United States and international taxation of the Internet and interactive computer services, as well as commerce conducted thereon and to jointly submit appropriate policy recommendations concerning United States domestic and foreign policies toward taxation of the Internet and interactive computer services, if any.

Be it further resolved that a copy of this resolution be forwarded to each member of the South Carolina Congressional Delegation.