A resolution requesting the Davidson County Delegation to the Tennessee General Assembly to take the action necessary to delay implementation of the Streamlined Sales Tax legislation.

WHEREAS, in 2003, the Tennessee General Assembly enacted the Simplified Sales and Use Tax Administration Act, which is scheduled to go into effect July 1, 2005; and

WHEREAS, the Simplified Sales and Use Tax Administration Act embodies the Streamlined Sales and Use Tax Agreement, of which the State of Tennessee is a participant; and

WHEREAS, the Streamlined Sales Tax will modify local sales tax collection from a situs based system (point of sale) to a destination based system (point of delivery); and

WHEREAS, the Metropolitan Government stands to lose approximately $10 to $12 million if the Streamlined Sales Tax is implemented; and

WHEREAS, the Metropolitan Government and the Tennessee Municipal League have commissioned a study to be conducted by the University of Tennessee Center for Business and Economic Research to determine the effects that the Streamlined Sales Tax will have on local governments; and

WHEREAS, it is fitting and proper that the Tennessee General Assembly delay the implementation of the Streamlined Sales Tax until the federal law is changed to allow state and local governments to tax internet and catalog sales.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as requesting the Davidson County Delegation to the Tennessee General Assembly to take the action necessary to delay implementation of the Streamlined Sales Tax legislation.

Section 2. That the Metropolitan Clerk is directed to send a copy of this Resolution by United States mail, electronic mail, or interdepartmental mail to each member of the Davidson County Delegation to the Tennessee General Assembly.

Section 3. That this Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Carolyn Baldwin Tucker