Commission Approves Report to Congress

Arlington, VA - March 30, 2000 - The Advisory Commission on Electronic Commerce today approved the Commission's final Report, which is due to Congress by April 21. In doing so, the Commission has accomplished its mission with only the delivery of the report to Congress remaining. The Commission met via telephone conference call made available to the public via audio Web-cast through the Commission's Web site.

The Report will include recommendations and majority policy proposals that the Commission approved at its last formal meeting in Dallas March 20-21. The recommendations call for greater attention on consumer privacy issues associated with the collection and administration of taxes on e-commerce and efforts to bridge the "Digital Divide" to permit all Americans to participate in the Internet economy.

A majority of the Commissioners approved policy proposals to reduce the amount of tax consumers pay by repealing the three-percent federal excise tax on telecommunications services; permanently prohibit states or localities from taxing Internet access fees; and extend the current Internet taxation moratorium. Congress legislated the moratorium against multiple and discriminatory taxes as part of the Internet Tax Freedom Act.

The Commission report also includes a recommendation for a standstill on international tariffs on Internet transactions that the Commission approved at its September meeting in New York.

"As Chairman, I am pleased that the Commission will fulfill its charter in both letter and spirit," said Commission Chairman and Virginia Governor James S. Gilmore, III. "The Commission provided a forum for presentation and discussion of all views, and returned valuable ideas to empower the American people. In addition, the Commission was hugely successful in elevating the visibility of this key issue, and in educating the public on the fundamentals underpinning Internet taxation and telecommunications regulations."

In addition to the majority proposal and recommendations, the final Report will also provide a forum for Commissioners to express distinct positions on e-commerce taxation.

For more information about the meeting and the Commission, the public may visit the Commission's Web site at http://www.ecommercecommission.org.

About the Advisory Commission on Electronic Commerce

Appointed by Congress in October 1998 as part of the Internet Tax Freedom Act, the 19-member Commission has been tasked with studying the impact of federal, state, local, and international taxation and tariffs on transactions using the Internet and Internet Access. The Commission's recommendations are due to Congress no later than April 21, 2000.