Official Document 2

National Tax Association Communications And
Electronic Commerce Tax Project

Organizing Documents (OD-2) OPEN LETTER OF INVITATION TO PARTICIPATE IN THE TAX PROJECT - DATED 9/6/97

NTA / NATIONAL TAX ASSOCIATION

725 15th Street, N.W. Washington, D.C. 20005

Re: Invitation to Apply to Be a Participant on Steering Committee of the Communications and Electronic Commerce Tax Project

Dear Tax Colleague,

The National Tax Association (NTA) is serving as the neutral convener of an important multi-organizational dialogue on state and local taxation matters, which is entitled the Communications and Electronic Commerce Tax Project (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 that 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 Project is in the organizational stages, and is being shaped by a group of Government and Business entities and agencies. The Government category includes state and local officials, agencies and organizations representing state or local governments. The Business category includes all businesses, tax practitioners and organizations representing businesses or practitioners. [A list of these Government and Business Partnership Organizations is provided on our Web site--see below).] These groups also seek the input and assistance of a group of "Other" representatives that do not fit into the Business or Government categories. Such organizations or persons will have an interest in the taxation of electronic commerce and a proven ability and willingness to contribute to the Project's tax policy issues.

The Project offers opportunities for both informal and formal participation to all Business, Government and Other entities. Informal participation occurs through attendance at the public forum meetings, where public comment on the subject matter of the Project will be solicited, and formal participation can occur by serving as either a Project Member or as a Project Steering Committee member. A copy of the charter document, entitled "Organization and Operation of the Communications and Electronic Commerce Tax Project," is also provided in the Web site.

The NTA has been assigned a trustee's role to assist in the designation of up to seven (7) Other category representatives to serve on this Project's Steering Committee along with the present set of 16 Business and 16 Government representatives. If you as an individual or your organization wish to participate in the "Other" category, the NTA invites your participation in this timely and critical tax policy Project:

Informal participation: As mentioned above, any Other entity or organization can, without regard to its specific tax expertise or availability of allocable resources, participate in any of the Project's public and open processes, including hearings and opportunities to comment on all recommendations and any model legislation developed through the Project.

Formal participation: Any qualifying entity should consider applying for designation as a member of the Project's Steering Committee, in the capacity as a representative of the Other constituent category. Steering Committee members serve a special role in the Project, as described in the attached document reflecting the organization and operation of the Project. Those Other organizations which the NTA nominates as Steering Committee representatives will be expected to provide a valuable additional perspective – sometimes augmenting and sometimes countervailing the variety of perspectives which the Business and Government representatives express.
As a Project Member, you will be listed on the Project Web site as a full member and may be expected to participate in the financing of this effort ($1,000 fee plus nominal charges to cover direct expenses of mailings, registrations at public forums and the like).

Again, let me stress that the NTA is serving as a neutral convener of appropriately qualified Other entities and organizations; in addition, the number of appointments to represent the Other constituent category on the Project Steering Committee is limited to a maximum of seven (7). Therefore, the NTA will review all applications for such appointment very carefully, with the goal of selecting a diverse but similarly qualified group of Other organizations. Furthermore, the NTA will nominate a slate of those qualified Other organizations for approval by the pre-designated 16 Business and 16 Government Steering Committee members. Of course, if you or your organization are not selected to serve as an Other Steering Committee member, you can still participate formally as a Project Member, or informally through attendance at public forum meetings.

If you are interested in being considered for appointment to the Project Steering Committee as a representative of the Other constituent category, please notify the NTA c/o Wade Anderson at:

wade.anderson@cpa.state.tx.us

It would be helpful to us if you could attach a statement describing your interest in the Project, the expertise that you or your organization would bring to the Steering Committee, and a statement of agreement to provide the requisite financing for the Project. Please submit your application by September 26th in order to be considered for appointment to the Steering Committee.

In any event, we – both the NTA and each of the participating Business and Government entities and organizations – sincerely hope that you will review the recommendations and any model legislation developed through the Project, and will give us the benefit of your perspective and insights. This contribution is more important to the success of the Project than the status of any particular organization or individual.

If you have any questions concerning this Project, please feel free to contact Dr. Gary Cornia, Chair, Communications and Electronic Commerce Tax Project, National Tax Association, 725 15th Street, Washington, DC 20005. Or, visit the Project's Web site at: http://www.nhdd.com/nta .

A membership organization, the National Tax Association is a non-political, nonpartisan, 501(c)3 nonprofit organization whose purpose is to foster study and discussion of complex and controversial issues in tax theory, practice and policy and other aspects of public finance. NTA does not promote any particular tax program or policy.

Sincerely,

Robert D. Ebel
Executive Director

date: 9/6/97