Council Chambers, Legislative Building 745 Fourth Street, Sparks, NV
General Business: 9.1
The Nevada League of Cities and Municipalities, through the City of Henderson, has conceived and is coordinating a National City Council Meeting which includes some city council and town hall meetings simultaneously taking place in cities, towns and communities across the state and in neighboring states.
The purpose of the event is to engage in a national or broader conversation at the local level about issues of interest or concern to all communities. This National City Council Meeting addresses the topic of closing the online sales tax loopholes.
Due to limited resources, Mayor Martini declined to host a separate City Council meeting, however, he did agree to bring forth the topic and resolution for this event which is before the City Council this afternoon.
Resolution No. 3293 addresses the concept of closing the online sales tax loophole that has been a priority of the City of Sparks, the Nevada League of Cities and Municipalities and the National League of Cities. The Legislature of the State of Nevada has adopted resolutions urging Congress to enact legislation closing the online sales tax loophole and leveling the playing field for brick and mortar businesses in Nevada.
National Conference of State Legislatures has estimated that $344,923,618 in owed sales taxes in Nevada, and a staggering $23,260,009,564 nationally, went uncollected in 2012 depriving all levels of government revenue needed to provide services to their constituents.
On November 13, 2013, the Sparks City Council voted to approve Resolution No. 3248 supporting the Marketplace Fairness Act, and including the support in the City’s federal framework and list of federal priorities. Since that time, a House of Representatives companion bill to the Senate bill has been introduced referred to as the Remote Transactions Parity Act (H.R. 2775).
The Remote Transactions Parity Act (RTPA) was introduced last year to require out-of-state merchants to collect state and local sales taxes just as brick and mortar stores are required to do. The RTPA addresses the Internet sales tax issue using the structure of the Marketplace Fairness Act (MFA), which passed the Senate in 2013. The legislation allows states to decide if the state or localities within the states will collect these taxes. The legislation is necessary due a 1992 Supreme Court decision that prohibits states from imposing a duty to collect on out-of-state merchants.
Senate Majority Leader Mitch McConnell (R-KY) promised a vote on online sales tax reform in the Senate this year, and House Speaker Paul Ryan (R-WI) promised action in the House.
Resolution 3293 urges the Congress to pass legislation similar to the Remote Transactions Parity Act (H.R. 2775) or the Market Fairness Act of 2015 (S. 698).
The Council could not support Resolution No. 3293.
I move to approve Resolution No. 3293 to support closing the online sales tax loopholes.
R3293 closing online sales tax loopholes.pdf