At present, Congress is considering a five-year extension on the Internet tax moratorium eliminating local and state collection of sales tax until 2006.
You may be asking, “how does this affect me?” Allow me to explain the devastating impact this could have for all of us.
Internet “e-tailer” transactions are exempt from sales tax, giving them an unfair advantage over local retailers. Our village businesses have already begun to experience the financial impact created by the inequity affiliated with Internet retail sales.
How can we possibly expect them to compete in such an arena?
Can our villages afford to lose the tax base of the local businesses?
Do we want vacant storefronts that lead to blight?
We must support our local businesses for the prosperity of our communities.
Local media must also be concerned with the inequity because much of their advertising revenue comes from the local “brick-and-mortar” retailers.
Citizens must understand that the extension of this moratorium will deprive their villages of much-needed tax revenue and will result in higher property taxes or a reduction in basic village services such as police, fire and public works.
