Lempert’s bill mirrored the federal rules enacted by IFTA, establishing a three-year state moratorium. However, the initial principles stated by the bipartisan, bicameral, California Legislative Internet Caucus, include language indicating an
openness to appropriate taxation. Further, in news accounts some digital industry reps have appeared accepting of taxation – at issue are questions of rates and timing. For their part, state and local government associations have been outspoken tax moratorium opponents. We think they would readily join a pro-tax coalition, though our timing recommendations
might affect support from this key group.