National Tax Association Communications And
Electronic Commerce Tax Project

Organizing Documents  (OD-1) DESCRIPTION OF THE ORGANIZATION AND OPERATION OF THE COMMUNICATIONS AND ELECTRONIC COMMERCE TAX PROJECT

1. Basic Organizing Principle.
   
   Any person, business, corporation, public agency or organization with an interest in state and local taxation of electronic commerce and that wishes to become a member of the Communications and Electronic Commerce Tax Project (Project) is invited to do so on the terms described in this document.
   
   
2. Purpose and Final Product of the Project.
   
   The purpose of the project is to develop a broadly available public report which identifies and explores the issues involved in applying state and local taxes and fees to electronic commerce and which makes recommendations to state and local officials regarding the application of such taxes. The report would include model legislation designed to implement the recommendations of the project.
   
   The first focus of the project will be issues concerning state and local sales and use taxation of communications and electronic commerce, including gross receipts taxes that are functionally equivalent to sales and use taxes.
   
   
3. General Project Organization.

1. Project Members. Organizations, persons and corporations with a demonstrated ability and willingness to contribute to the tax policy issues being considered by the Project are welcome to become Project Members and to participate in the Project's policy discussions and work group activities.
   
   The Projects Members are organized in three categories: Business, Government and Other. Project committees and groups typically will be organized to represent these categories. The "business" constituency includes all businesses, tax practitioners and organizations representing businesses or practitioners. The "government" constituency includes state and local official, agencies and organizations representing state or local governments. The "other" category consists of other organizations that do not fit into the business or government category and have an interest in the taxation of electronic commerce and an ability and willingness to contribute to the Project's tax policy issues.

1. Steering Committee. The Steering Committee will perform two major functions. First, it will ensure that all Project Members have an effective opportunity to review and provide ideas, comments and suggestions with regard to the policy issues being considered by the Project. Second, based on the input provided from the entire Project Membership, the Steering Committee will serve as a forum for discussing tax policy issues and organizing the input of Project Members into project recommendations. The Steering Committee will approve proposals for model legislation and any other project recommendations. It will make decisions by consensus only. There will be a maximum of 39 members on the Steering Committee, 16 from the business, 16 from the government and up to 7 from the "other" category.
   
   
2. Operating Committee. The administration of the project will be guided by an Operating Committee comprised of the Project Chair, appointed by the National Tax Association, and up to six committee members selected by the Chair - divided equally between the business and government categories. The Operating Committee will be responsible for planning project meetings, preparing agendas, assisting the Steering Committee and Project Members with the organization of work groups, and doing such other tasks as necessary to ensure the operation of the project.
   
   
3. Work Group. To consider technical or other detailed issues, the Project will establish work groups of manageable size to develop recommendations on specifically assigned topics. Membership on work groups may be drawn from any organization or person participating in the project, including project members.
   
   
4. Staffing Drafting Group. One initial work group will be the Staff Drafting Group. The Staff Drafting Group will include experts and staff persons who have volunteered or are appointed by Project Members to assist with drafting general proposals for consideration by the Steering Committee.
   
   
5. Public Hearing. The Steering Committee shall conduct public hearings on any potential recommendations and draft model legislation. Such hearings will be open to the public beyond the Project Membership and shall be in addition to all other efforts to secure the advice and counsel of Project Members. The Steering Committee shall consider all major comments contributed at those hearings.

2. Partnership Organizations. This project is being organized under the general auspices of the National Tax Association and in partnership with the following government and business organizations: Business - the Committee on State Taxation, the Information Technology Association of America, the Interactive Services Association, the U.S. Communications Association, and the National Cable Television Association; Government - the National Governors Association, the National Conference of State Legislatures, the Federal of Tax Administrators, the Multistate Tax Commission, the National Association of Counties, the National League of Cities, the U.S. Conference of Mayors, and the Government Finance Officers Association. together these organizations comprise the "Partnership Organizations" for the project. These organizations together play a leading role in organizing the project and shaping its results.

4. Decision-Making by Consensus. Project decisions will be made by consensus.
   
   
5. Organization of Steering Committee and Work Groups. The Partnership Organizations will organize the Steering Committee. All project Members may assign persons to the Work Groups. The Steering Committee will be organized as described below.

1. Business Representation. The Committee on State Taxation, the Information Technology Association of America, the Interactive Services Association, the U.s. Communications Association, and the National Cable Television Association will together organize and select the 16 business representatives on the Steering Committee.
   
   
2. Government Representation. The National Governors Association, the National Conference of State Legislatures, the Federation of Tax Administrators, the Multistate Tax Commission, the National Association of Counties, the League of Cities, the Conference of mayors and the Government Finance Officers Association will together organize and select the 16 government representatives on the Steering Committee.
   
   
3. Other Representation. The National Tax Association will organize and nominate up to 7 "other" representatives on the Steering Committee to be approved by consensus of the remaining Steering Committee members. The National Tax Association shall perform a "trustee" role in ensuring that other groups of organizations participating in the Project have a demonstrated ability to contribute to the tax policy issues being addressed by the Project.

6. Project Financing. All project costs will be divided equally among Project Members, except for any individual faculty members participating other than as representatives of an organization. Budgets will be approved by the Project Members that participate in project financing.
   
   
7. Project Approach. The project will begin with initial educational sessions organized by the Operating Committee based on recommendations from the partnership organizations or the Steering Committee. Following initial educational sessions, the Steering Committee will consider issues related to the application of sales and use taxes (and functionally equivalent gross receipts taxes) to modern communications and electronic commerce. What will follow as the next steps will depend on the conclusions arrived at from the initial general sessions. The Steering Committee may request that draft language for one or more model legislative approaches be prepared. Alternatively, they may wish that certain technical issues be clarified early through special work groups. Regardless of what steps ensue after the initial discussion, it is assumed that at some stage narrow issues will be assigned to work groups. The Steering Committee, will form work groups and draw upon Project Members in forming such groups.
   
   Before the Steering Committee arrives at any final recommendations , the committee shall provide Project Members not serving on the committee with a full and effective opportunity to review and comment on proposals under consideration and to engage in an active dialogue with the Steering Committee on the proposals. In addition, the Steering Committee will conduct a public hearing or hearings on any proposals under consideration so that interested parties other than Project Members may offer comments on such proposals.
   
   After completion of work on sales and use taxes (and functionally equivalent gross receipts taxes), the Steering Committee may select additional tax subjects for consideration. If selected, the Operating Committee will be asked to prepare proposed plans as are necessary to continue the work of the project.

©Copyright 2008, National Tax Association. All rights reserved.