Legislature Says NO to New Internet Taxes; American Electronics Association Urges Governor to Sign AB 1614

Internet Access: Legislature Says NO to New Internet Taxes; American Electronics Association Urges Governor to Sign AB 1614

The California Legislature gave Internet commerce a “green light” Thursday as it sent Assembly Bill 1614 (Lempert), the California Internet Tax Freedom Act, to the Governor’s desk on a 70-0 vote.

Teresa Casazza, Executive Director of Public Policy for the American Electronics Association said, “The high-tech industry commends the legislature for its overwhelming support of Internet commerce in California. AB 1614 will prevent any new taxes from being imposed on the Internet and allow the emerging industry to take hold and grow quickly.”

“Electronic commerce offers a myriad of benefits and opportunities for all Californians. For consumers, including the elderly, disabled and those living in remote locations, the technology offers extensive options for comparison shopping, information gathering and purchasing opportunities.”

AB 1614 will not result in a reduction of any state or local revenues that are currently being collected. What it will do is prevent local governments, in the guise of expansion of existing tax programs, from subjecting the Internet or Internet-related businesses to the risk of multiple state and local taxes on the same transaction or income.

Merchandise sold over the Internet will continue to be taxed as if the transaction occurred over the telephone or through mail order.

“Small business are benefiting from the Internet because it’s a terrific way to reach millions of potential customers and is a cost-effective distribution system. By staving-off new Internet taxes, AB 1614 encourages the growth of electronic commerce. The American Electronics Association and its 1,500 California member-companies applaud the Legislature for supporting the development and growth of the Internet industry in California,” Casazza said.

“The American Electronics Association urges Governor Wilson to sign the California Internet Tax Freedom Act,” said Casazza.

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