Federal Preemption of State and Local Government Taxing Authority
State and local governments strongly support access to reasonably priced technological advances and appreciate the concerns regarding the effect that taxation may have on the fiscal health of emerging and changing industries. However, state and local governments' autonomy and the ability to meet the needs of their citizens must be preserved along with their taxing authority.Proposals to limit the ability of state and local governments by placing a moratorium on state and local taxation is a significant infringement on state and local government authority and undermines the legitimacy of the partnership among the three levels of government. In addition, the prohibition of a legitimate source of revenue prevents state and local governments from accommodating changes in industry within their jurisdictions and reduces their flexibility to respond to changes in circumstances by adjusting their sources of revenue.
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