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Brick-and-Mortar Retailers Call On Congress to Reject ACEC Report

Tax-news.com

03 April 2000

The International Council of Shopping Centers (ICSC) opposes the recently adopted report of the Advisory Commission on Electronic Commerce (ACEC) and will organize its 35,000 United States shopping center members in effort to persuade Congress to reject the recommendations of the report.

``It is clear that the ACEC report is nothing more than a biased tax exemption proposal favoring the high-tech companies represented on the commission. Brick-and-mortar retailers, who were not represented on the commission, as well as local governments, will suffer if Congress adopts this report. ICSC and our many retail and municipal allies will emphatically lobby Congress to express our disapproval of the ACEC report,'' asserted ICSC President John T. Riordan.

After nearly a year of meetings, the ACEC failed to garner the two-thirds vote required by Congress to present formal recommendation on Internet tax policy. The Internet Tax Freedom Act reads in part, ``No finding or recommendation shall be included in the report unless agreed to by at least two-thirds of the members of the Commission.''

Instead of a two-thirds majority, ACEC commissioners split their support between two proposals. One proposal, led by Utah Governor Michael Leavitt, would have achieved a level playing field for all retailers and was backed by seven commission members representing federal, state and local governments. The other proposal, promoted continuing unfair treatment of brick-and-mortar retailers, denied state and local government the rights to collect sales taxes that are essential to local services and blatantly protected the interests of high-tech companies represented on the commission.

Last ditch efforts made by Governor Leavitt to reach a compromise agreement collapsed when ACEC Chairman Virginia Governor James Gilmore rammed through the report and the six business commissioners chose to reject equal treatment for all retail channels and instead backed the tax preferences that will directly benefit their companies. The ACEC is scheduled to send its final report to Congress by April 21, although there are reports that Chairman Gilmore intends to release it earlier.

``Governor Gilmore stated at the close of the ACEC meeting that the American people would decide the fate of the ACEC report. There are over 11 million people employed in shopping centers in the United States and I can assure Governor Gilmore and the Congress of the United States that these individuals will be heard. Creating a bias toward one segment of a marketplace by legislating tax-preferred status for goods purchased via the Internet will seriously damage brick-and-mortar stores and the communities they serve,'' stated Mr. Riordan.

The International Council of Shopping Centers is a not-for-profit trade association of the shopping center industry. It serves 35,000 members in the United States by assisting in the development of their businesses through professional education, conferences and conventions, publications, research and legislative actions.

Contact:
International Council of Shopping Centers
Malachy Kavanagh, 212/421-8181 ext. 344

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