In the consumption tax area, the framework provides that taxation should occur in the jurisdiction where consumption takes place, and that the supply of digitized products should not be treated as a supply of goods. The report of the Advisory Commission on Electronic Commerce is due to be delivered to Congress in April of 2000. The Commission is attempting to meet this deadline with some sort of consensus. The last meeting was in San Francisco in mid-December. The next meeting is in Dallas in mid-March.
Voting is scheduled for the Dallas meeting.
Approximately thirty plans were submitted to the Commission for consideration. The Commission sifted through the plans and settled on four plans for serious consideration. The NGA plan is receiving the most attention. It calls for simplification of state tax systems, voluntary collection of use tax by remote sellers, and a zero-burden collection system, where trusted third parties collect and remit tax on online, and possibly, offline transactions. The Gilmore plan calls for a tax exemption for remote sales.