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Chairman

The Honorable James S. Gilmore, III
Governor
Commonwealth of Virginia

Members

Mr. Dean F. Andal
Chairman
California Board of Equalization

Mr. C. Michael Armstrong
Chairman and CEO,
AT&T

Mr. Joseph H. Guttentag
Senior Advisor to the Assistant Secretary for Tax Policy
U.S. Department of the Treasury

The Honorable Paul C. Harris Sr. Delegate
Virginia House of Delegates

The Honorable Delna Jones
Commissioner
Washington County, Oregon

The Honorable Ron Kirk
Mayor
City of Dallas

The Honorable Michael O. Leavitt
Governor
State of Utah

Mr. Gene N. Lebrun
President (1997-1999)
National Conference of Commissioners on Uniform State Laws

The Honorable Gary Locke
Governor
State of Washington

Mr. Grover Norquist
President
Americans for Tax Reform

Mr. Robert Novick
General Counsel
U.S. Trade Representative

Mr. Richard Parsons
President
Time Warner, Inc.

Mr. Andrew Pincus
General Counsel
U.S. Department of Commerce

Mr. Robert Pittman
President & Chief Operating Officer
America Online

Mr. David Pottruck
President & co-Chief Executive Officer
Charles Schwab and Company

Mr. John W. Sidgmore
Vice Chairman
MCI WorldCom and Chairman UUNET

Mr. Stanley Sokul
Independent Consultant
Association for Interactive Media

Mr. Theodore Waitt
Chairman
Gateway, Inc.

For Immediate Release
May 10, 2000
Press Contacts:
Debbie Neville
O'Keeffe & Company, Inc.
(703) 883-9000, ext. 104
dneville@okeeffeco.com

Heather Rosenker
Executive Director
Advisory Commission on Electronic Commerce
(703) 993-8049
rosenker@gmu.edu

Mark Miner
Press Secretary
Office of the Governor of Virginia
(804) 692-3110
mminer@gov.state.va.us

E-Commerce Commission Proposals Approved In House
House of Representatives Passes Amended HR 3709 Extending Moratorium, Eliminating Internet Access Charges

Arlington, VA - May 10, 2000 - The U.S. House of Representatives today endorsed conclusions of the Advisory Commission on Electronic Commerce by passing legislation 352 to 75 to extend a moratorium for five years prohibiting multiple or discriminatory taxes on electronic commerce and eliminating taxes on Internet access fees. A three-year moratorium was imposed in 1998 by the Internet Tax Freedom Act. It grandfathered states taxing Internet access on or before October 1, 1998, by allowing them to continue doing so. The new legislation, if signed into law, would extend the moratorium to October 2006 and would eliminate the grandfather provision.

"The House of Representatives' passage of this bill validates the Commission's work," said Virginia's Governor, Jim Gilmore, III, Commission chairman. "The legislation ensures that transactions, whether they take place via telephone, catalog, or the Internet, are all treated in the same equitable manner. The House's action is a major victory for the American people who are logging on the Internet."

An amendment to HR3709 proposed by Representative Ernest Istook, (R-OK) also passed today, urging states and localities to work together to develop a non-multiple and non-discriminatory tax system, encouraging states to promote uniformity, simplicity, and consistency in an electronic taxing system.

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 were provided to Congress on April 12, 2000, ahead of the deadline of April 21, 2000.

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