CITY COUNCIL OPPOSES BAN ON E-TRADE TAXES.Byline: Rick Orlov Staff Writer Faced with the loss of $12 million in sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. revenue to Internet competition, the Los Angeles City Council  The Los Angeles City Council is the governing body of the City of Los Angeles, California, United States. went on record Wednesday to
oppose efforts to permanently ban taxes on e-commerce purchases.
``People have to understand we are not seeking a new tax but trying to keep what we have,'' Councilman Mike Hernandez said. ``What's happening is people are going to stores to see goods and feel them, then go home and buy them off the Internet to avoid sales taxes.'' The federal government is considering a proposal that would place a permanent ban on any taxes involving sales on the Internet to encourage the development of the business, known as e-commerce. However, cities such as Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. are concerned it would severely impact a revenue source for local government. ``Also, one of the biggest losers will be the state government and, in turn, schools,'' Chief Legislative Analyst Ron Deaton told the council. ``More than half of the state budget goes to schools.'' Deaton compared the Internet sales situation to the same problem with catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. purchases from firms outside California. Councilman Nate Holden Nathaniel "Nate" R. Holden (1929-) served on the Los Angeles City Council from 1987 to 2002. He previously served a term on the California State Senate and was Assistant Chief Deputy to then Los Angeles County Supervisor Kenneth Hahn. said he would like to see laws changed to allow cities to tax people on the goods they purchase based on where they live. |
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