RES 1102 7/22/1986ff. S:R _rj V70F.T.061ORK17,
A RESOLUTION BY THE CITY OF CIBOLO, TEXAS SUPPORTING THE BROOKS
BILL, HR 5021, INTRODUCED IN CONGRESS BY REPRESENTATIVE JACK
BROOKS OF BEAUMONT IN JUNE 1986 TO REQUIRE NATIONAL MAIL-ORDER
COMPANIES TO COLLECT AND REMIT SALES TAX ON TRANSACTIONS MADE
IN STATES THAT HAVE SUCH A TAX.
WHEREAS, A U.S. Supreme Court ruling was passed in 1967 which
holds that, while states can impose a tax on mail order sales made by
out of state companies, they cannot make the companies collect and re -
mut the tax and
WHEREAS, this enables large out of state mail order companies to
legally avoid collecting Texas sales tax on $3 billion worth of merch-
andise and
INASMUCH AS the ruling also hurts local merchants who must collect
the tax by giving an advantage in price to out of state mail order
companies; NOW THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS, THAT:
1. The City of Cibolo, Texas supports the Brooks Bill, HR 5021,
as it pertains to the collection and remittance of sales tax on trans-
actions made in states that have such a tax.
PASSED, APPROVED, AND ADOPTED THIS 22ncZAY OF July 1986.
Bill Little, Mayor
ATTEST:
Gladys feil, C' y Secretary