Debate continues over Net taxes After a private meeting with most members of the Senate, Govs. Glendening said the federal government and the states have about two years to reach consensus on how to apply existing sales-tax laws to electronic commerce. We believe we have to move to a level playing field. Later this year, Congress is likely to consider legislation extending or making permanent the current three-year moratorium on taxes that single out the Internet, such as those on access or digital downloads.
Most governors agree with that moratorium, but what to do about sales taxes is another question.
Leavitt, chairman of the governors association, is also a member of a commission created by Congress to recommend future Internet tax policy. Its report is due in April, but there is no consensus about what to do. Scrapping a proposal for creation of a ''trusted third party'' to collect and remit sales taxes. Instead, a way would be developed to adapt the current system. Extension of the moratorium on taxes that single out the Internet, which expires in October 2001.