WHEREAS:

State and local governments are currently losing approximately $2.5 billion dollars a year in sales tax revenues because of the refusal of out-of-state direct mailers to collect sales taxes owed on the purchase of the goods sold by them; and

WHEREAS:

Public services provided by state and local governments have been severely reduced by the Reagan Administration's 25 percent cut in federal aid; and

WHEREAS:

Direct sales marketers who solicit across state lines are increasing rapidly and are projected to constitute 20 percent of all sales by 1990; and

WHEREAS:

Sales taxes constitute the largest source of revenues to state and local governments and the explosion in direct marketing sales will lead to further cuts in public services; and

WHEREAS:

Local retailers are put at an unfair disadvantage by having to collect sales taxes while direct marketers can charge less for the same goods because they do not have to collect taxes.

THEREFORE BE IT RESOLVED:

That AFSCME urge Congress to exercise its constitutional power to regulate interstate commerce by enacting legislation requiring direct marketers to collect sales taxes and remit them to the governmental jurisdictions in which the purchases were made.

SUBMITTED BY:

International Executive Board