WHEREAS:

State and local governments are currently losing $3 billion a year in revenues because of the refusal of out-of-state direct mailers to collect sales taxes; and

WHEREAS:

Public services provided by state and local governments have been severely reduced by the Reagan and Bush Administrations' extensive cuts 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 the end of this year; and

WHEREAS:

Sales taxes constitute the largest source of funds to state and local governments and the explosion in direct marketing sales will lead to further losses in revenue and cutbacks in public services.

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 originate.

SUBMITTED BY:

Charles Pitts, President
Sandra M. Floyd, Secretary
AFSCME Council 13
Harrisburg, PA