June 14, 2001 E-Fairness Talks Gain Momentum The recent decision of Senator James Jeffords of Vermont to leave the Republican party, which gave Democrats the majority in the Senate, turned Washington upside-down--and has changed the legislative prospects for a number of issues, including e-fairness. Following the Jeffords move, Senator Ernest F. Hollings (D-SC) has become the chair of the Senate Commerce Committee--replacing Senator John McCain (R-AZ)--and, according to a recent report in the Daily Tax Report, Hollings hopes to bring a compromise Internet taxation bill to the floor of the Senate "in the near future." In addition, USA Today reported on June 14 that a successful compromise had been reached, quoting Senator Byron Dorgan (D-ND), "No one is talking about imposing new taxes on anyone." It remained unclear at press time whether all involved in the talks had signed off on an agreement. Earlier in the week a Hollings aide had explained that "It's something we're going to do within the next month or two," adding, "We would like to solve this problem. But it really does depend on whether the groups out there are ready to negotiate an agreement that can pass the Senate," as reported by Daily Tax Report. At the same time, the office of Senator Dorgan had confirmed that talks were continuing between Dorgan and Senator Ron Wyden (D-OR) regarding a compromise on the e-fairness question. Dorgan and Wyden have introduced competing Internet taxation bills. Under the broad outlines of a possible agreement, after a minimum number of states simplified their sales tax regulations they would be allowed to require online retailers to collect sales taxes. Also, Congress would extend the current moratorium on any new taxes on the Internet until 2006. The current moratorium is set to expire in October. Following reports of the ongoing negotiations, Lisa Cowell of the e-Fairness Coalition reiterated that the organization is looking for realistic tax simplification and a level playing field for all retailers. "From a political standpoint, I'd like to see a compromise in the Senate so we can see this issue moved forward," she said, as reported by Daily Tax Report. ABA and a number of the regional booksellers associations, as well as many other retailers and businesses nationwide, are members of the e-Fairness Coalition, and a number of booksellers have played prominent roles in promoting the issue of e-fairness. At press time, Andy Ross of Cody's Books of Berkeley, California, was scheduled to participate in a debate with Grover Norquist on e-fairness at the Federalist Society in Washington, D.C., on Friday, June 14, at the Capitol Hill Club. -Dan Cullen Topics: Internet Commerce, Sales Tax Initiative,