 | |
| |
TechnologyDaily Mobile
States Find Silver Lining In Net Tax Debate
State and local groups were surprised and encouraged by the House's support this week of a provision that supports their efforts to simplify their current sales tax systems for the Internet age as part of a larger bill extending the current Internet tax moratorium.
By a 289-138 vote, House lawmakers approved a controversial amendment by Rep. Ernest Istook, R-OK, that would create a non-binding sense of Congress urging states and localities to develop a uniform tax system that does not discriminate between Internet and bricks and mortar stores.
"I was surprised the Istook amendment passed," said Neal Osten, director of the National Conference of State Legislatures Commerce and Communications Committee. "The fact that it's in there gives us a little hope that we didn't get totally wiped out."
It was unclear whether the House leadership was even going to allow Istook to offer his amendment after he had sent a letter to his colleagues prior to Wednesday's vote on extending the Internet tax moratorium by five years urging them to oppose the bill. Istook, a fiscal conservative, felt the process was moving too fast.
"There's no principle of equity here," Istook said on the House floor, adding that H.R. 3709 would ultimately erode state and local governments' ability to maintain public services by weakening their tax systems.
"I was surprised that Istook's amendment got as many votes as it did," said Ralph Tabor, associate legislative director for the National Association of Counties. "It spells out that Congress has to endorse what we do."
The National Governors' Association also endorsed the Istook amendment.
"We are pleased that an overwhelming majority of the House of Representatives voted on Mr. Istook's amendment recognizing the importance of providing a level playing field for Main Street retailers and small businesses, that the current situation is unfair and wrong, and that state and local revenue decisions are not federal, but state and local issues and responsibilities," the group said in a statement.
The House approved the overall Internet tax moratorium extension by a 352-75 vote, even though a number of lawmakers on both sides of the aisle have expressed reservations about the length of the extension. H.R 3709 extends by five years the current three-year moratorium on access and other discriminatory taxes on the Internet.
Some fear that the period is too long, but agreed to support the bill because the current deadlock in the Senate Commerce Committee on the issue makes it unlikely the extension would be signed into law. House leaders work to get the support of the reluctant members by promising a hearing in the House Judiciary Committee next week on the sales tax issue.
"When we had our meetings [with members] last week, that's what they told us," Osten said. "That does not make us feel very comfortable."
Tabor said it was a safe vote for lawmakers to show their support for the high-tech industry without any consequences.
"There were a lot of Democrats who voted on final passage on this thing so they can still go out to Silicon Valley with their tin cups," he said.
Commerce Funds Community Technology Center Study
In an effort to study the effectiveness of federally funded community technology centers, the Commerce Department has awarded $100,450 to the Virginia Polytechnic Institute in Blacksburg, VA.
The university will survey 100 community technology centers throughout the country to study the technology resources available at each center and the factors that go into creating new centers. The survey also will look at how the centers are being integrated into economically distressed areas and methods of increasing access to the centers.
President Clinton is calling on Congress to appropriate more funding for the centers nationally as a way to help bridge the gap between communities that have access to new technology and those that do not.
"The important role that Community Technology Centers play in helping bridge the digital divide cannot be overstated," Commerce Secretary William Daley said in a statement.
New York Boosts Technology Budget
New York's 2000-01 state budget will include $20 million targeted toward developing high-tech and biotechnology research and industry development within the state, Gov. George Pataki, R-NY, recently announced.
"These additional resources will help catapult New York to the forefront of high-tech business development, as we work in tandem with our research and academic institutions to bring the jobs of the future to the Empire State," Pataki said in a statement.
The $20 million cash infusion will help fund new biotechnology research and manufacturing facilities and create business capital for biotech startups.
The new funds are in addition to other state technology job development programs funded in the budget. They include $43.8 million in capital funding to support high-tech research facilities and business incubators, $14 million for the Centers for Advanced Technology, which aides New York companies to develop new technology, and $1.7 million for the Empire State Technology Employment Incentive program, which is aimed at addressing the shortage of engineers, researchers and other technology workers.
- by Rebecca Weiner
NEW FEATURE
-Advertisement-
