Although the AFP says it recognizes that sales tax is a critical source of revenue for state and local governments, and is supportive of the principle of tax equity, the association charges that the current method is complex, inconsistent and should be reformed.
In comment letters delivered to sponsors of Internet tax legislation, the AFP challenged Congress to:
- extend the current moratorium through October 21, 2005;
- encourage state and local governments to simplify and unify their complex sales tax structures;
- allow states that have simplified, uniform sales tax structures to impose sales taxes on purchases by their residents, regardless of the location of the seller or whether the purchase was made at a store, by telephone, by mail or by the Internet;
- ensure that compliance with the simplified sales tax structure does not increase the burden placed on merchants.