07/26/2004

07/26/2004 Executive News

Executive News
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07/26/2004
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Taxes Lost from Internet Sales - The UT Center for Business and Economic Research has issued a report concluding that the state and localities are losing up to $454 million annually in lost sales tax revenue because of sales on the Internet. Ah, what does that mean to MTAS? See if my table below makes any sense.
$454,700,000
Total amount lost by the state and all localities
9.75%
Total sales tax possible
5%
The state wide sales tax percentage that is shared with cities.
51.282%
The percentage 5% is of 9.75%
$233,179,487
Percentage of the amount lost that would be in the pool to be shared with cities.
4.26%
Percentage of the pool that is shared with cities.
$9,901,267
Amount lost by cities.
1%
MTAS percentage of the city amount.
$99,013
Amount lost by MTAS.
and that's each year and likely to grow! The state passed the sales tax streamlining bill last year. After at least 10 states representing 20% of the nation's population have adopted the streamlined sales tax, then the states will either return to the Supreme Court, Congress, or rely on the voluntary cooperation of retailers to collect sales tax on sales over the Internet. So, it may be a long time before the state, the cities, or MTAS begin to see any advantages from the streamlined sales tax act. But it could be significant if it ever happens.

Chattanooga - The City of Chattanooga has asked MTAS to prepare its city code. Chattanooga is the biggest city the codes team has ever worked with. Thanks to Mike for being the "salesman" and to Steve, Sandy, Linda, Lisa and Mickeeya for getting ready to fulfill the order.

Harvard Awards - Do you know of a city that might be interested in applying for these annual awards? The Ash Institute for Democratic Governance and Innovation at Harvard University's Kennedy School of Government invites innovative government programs to apply for the 2005 Innovations in American Government Awards. The 2005 application deadline is August 6, 2004. URL:
http://www.innovationsaward.harvard.edu

Recruiting - We have conducted the interviews for the IT Administrator II position and are proceeding with the selection process. This position will assist Lisa with maintaining and improving all our hardware and software and will consult with cities on Internet applications and usage.

We continue to receive applications for the Administrative Services Assistant to replace Jennifer after her promotion.


Date
Document Author
B. Schwartz