National Conference of State Legislatures adopts new policies

The National Conference of State Legislatures adopted myriad new policies at the close of its annual meeting last week, including some dealing with states' roles in Internet taxation.

The NCSL called for a simplified nationwide Internet tax system to replace the overly complex measures currently in place that hinder Internet businesses from efficiently disbursing sales and usage taxes to the states.

The NCSL's simplified system would require sales and use taxes collected from a purchaser to be allocated to the that person's state, even if the business is located in another state.The group also advocates a "competitively neutral manner" approach to telecommunications and electronic commerce transactions but does not want Internet-based businesses to receive any tax help that will hurt local merchants.

The NCSL took a firm stance against the federal initiative to remove states' rights to determine their individual tax policies in telecommunications, e-commerce and other areas.

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