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PRESS INTERVIEWS

Jax Technology Attorney Weighs
In On Possibility
of Taxing Internet Purchases



October 19, 2001
The Business Journal of Jacksonville

Scott Draughon is featured in a story about Internet taxation in The Business Journal of Jacksonville's Web edition. Draughon told reporter Tami McClaran it is likely some states will eventually begin taxing Internet purchases. He explained that although a ban on Internet taxation expired Sunday, October 21, it is not likely state governments will rush legislation to impose taxes. "On the short term it probably won't make a difference. But long term, some states will probably do something to tax Internet purchases", explained Draughon. He also says the expiration of the moratorium does leave room for interpretation of current tax laws.

The National Governors' Association supports Internet taxation, claiming states could lose as much as twenty billion dollars in sales tax by next year. A moratorium prohibiting taxes on Internet access and banning any tax that singles out the Internet was imposed in 1998. Lawmakers are now debating how to apply state sales taxes to eCommerce although there was an initial signal that lawmakers would pass an extension of the moratorium. Draughon says the National Governors' Association is now better positioned to continue its push for the Internet sales tax proposal.

The Business Journal of Jacksonville is a weekly publication serving the greater Jacksonville business community.

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