Taking a Closer Look at the Advisory Commission on Ecommerce
A Home Business Article Contributed by Cassandra l. Keller
Taking a Closer Look at the Advisory Commission on Ecommerce
The Advisory Commission on Ecommerce, or the ACEC, was established to study taxation and tariffs on transactions using the Internet at the local, state, federal and international levels. The Advisory Commission is made up of 19 members. It was chaired by Virginia Governor James S. Gilmore, III. Along with Governor Gilmore, there were two other governors on the Commission as well as numerous heads of corporations, government leaders and business leaders spanning across the nation.
How the Advisory Commission on Ecommerce Was Created
The Advisory Commission on Ecommerce was created in 1998 after Congress passed the Internet Tax Freedom Act. The tax, which imposes a three-year moratorium on new Internet taxation, was later signed by the President Bill Clinton. In conjunction with the passing of the Internet Tax Freedom Act, Congress established the Advisory Commission on Electronic Commerce to review the subject of Internet taxation.
Identifying the Authority of the Advisory Commission on Ecommerce
Once created, the Advisory Commission on Ecommerce conducted an intense study of local, state, federal and international taxation and tariff treatment of transactions using the Internet and Internet access. It also investigated other comparable intrastate, interstate and international sales activities in an effort to determine how ecommerce was effecting the nation's economy as well as global economy.
After its research, the Advisory Commission on Ecommerce was assigned to produce a policy initiative that some argue is the most important initiative of the information age.
On April 12, 2000, the Advisory Commission on Ecommerce's recommendations on the target ecommerce issues were submitted to Congress.
The Term of the Advisory Commission on Ecommerce
The term of the Advisory Commission on Ecommerce ended when it handed in its report April 12, 2000. The Advisory Commission completed its mission ahead of schedule.
How the Advisory Commission on Ecommerce Was Funded
The Advisory Commission on Ecommerce was funded through a gift authority handed down by Congress. The Commission then approved a funding strategy during its first meeting. It also request additional funding for Commission activities.
President Clinton signed a bill including $1.4 million in Fiscal Year 2000 for operating funds for the Commission on Nov. 29, 1999.
When Did the Advisory Commission on Ecommerce Meet?
The Advisory Commission on Ecommerce met in person only a handful of times. Those meetings were as follows: June 21 and June 22, 1999, Williamsburg, Va; Sept. 14 and Sept. 15, 1999, New York City; Dec. 14 and Dec. 15, 1999, San Francisco; and March 20 and March 21, 2000, Dallas.
The Advisory Commission on Ecommerce also met two times via telephone.
Other Issues the Advisory Commission on Ecommerce Reviewed
Along with reviewing the tax issues at hand the Advisory Commission on Ecommerce noted the Internet is, by its very nature, knows no geographical boundaries. Because of this, the Commission said, the internet violates those geographical boundaries that hinder other forms of commerce. The Commission also reported on the implications of personal privacy on the taxation of Internet purchases.
