[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 150 Referral Instructions Senate (RIS)]

  1st Session
                                 S. 150

                          [Report No. 108-155]

   To make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
                       Internet Tax Freedom Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 13, 2003

Mr. Allen (for himself, Mr. Gregg, Mr. Burns, Mr. Ensign, Mr. Bunning, 
 Mr. Sununu, Mr. Warner, Mr. Miller, Mr. Brownback, Mr. Bayh, and Mr. 
Smith) introduced the following bill; which was read twice and referred 
       to the Committee on Commerce, Science, and Transportation

                           September 29, 2003

               Reported by Mr. McCain, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           September 29, 2003

Referred to the Committee on Finance for a period not to exceed thirty 
calendar days with instructions to report or be discharged pursuant to 
                    the order of September 23, 2003

_______________________________________________________________________

                                 A BILL


 
   To make permanent the moratorium on taxes on Internet access and 
multiple and discriminatory taxes on electronic commerce imposed by the 
                       Internet Tax Freedom Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Internet Tax Non-
discrimination Act of 2003''.</DELETED>

<DELETED>SEC. 2. AMENDMENT OF INTERNET TAX FREEDOM ACT.</DELETED>

<DELETED>    Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 
151 nt.) is amended--</DELETED>
        <DELETED>    (1) by striking ``taxes during the period 
        beginning on October 1, 1998, and ending on November 1, 2003--
        '' and inserting ``taxes:'';</DELETED>
        <DELETED>    (2) by striking paragraph (1) and inserting the 
        following:</DELETED>
        <DELETED>    ``(1) Taxes on Internet access.''; and</DELETED>
        <DELETED>    (3) by striking ``multiple'' in paragraph (2) and 
        inserting ``Multiple''.</DELETED>

<DELETED>SEC. 2. REPEAL OF EXCEPTION.</DELETED>

<DELETED>    Section 1104 of the Internet Tax Freedom Act (47 U.S.C. 
151 nt.) is amended by striking paragraph (10).</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Internet Tax Nondiscrimination 
Act''.

SEC. 2. PERMANENT EXTENSION OF INTERNET TAX FREEDOM ACT MORATORIUM.

    (a) In General.--Subsection (a) of section 1101 of the Internet Tax 
Freedom Act (47 U.S.C. 151 note) is amended to read as follows:
    ``(a) Moratorium.--No State or political subdivision thereof may 
impose any of the following taxes:
            ``(1) Taxes on Internet access.
            ``(2) Multiple or discriminatory taxes on electronic 
        commerce.''.
    (b) Conforming Amendments.--
            (1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C. 
        151 note) is amended by striking subsection (d) and 
        redesignating subsection (e) as subsection (d).
            (2) Section 1104(10) of the Internet Tax Freedom Act (47 
        U.S.C. 151 note) is amended by striking ``unless'' and all that 
        follows through ``1998''.
            (3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act 
        (47 U.S.C. 151 note) is amended by striking ``except with 
        respect to a tax (on Internet access) that was generally 
        imposed and actually enforced prior to October 1, 1998,''.
    (c) Clarification.--The second sentence of section 1104(5), and the 
second sentence of section 1101(e)(3)(D) (as redesignated by subsection 
(b)(1) of this Act), of the Internet Tax Freedom Act (47 U.S.C. 151 
note) are each amended by inserting ``, except to the extent such 
services are used to provide Internet access'' before the period.

SEC. 3. 3-YEAR SUNSET FOR PRE-OCTOBER, 1998, TAX EXCEPTION.

    The Internet Tax Freedom Act (47 U.S.C. 151 note) is amended--
            (1) by redesignating section 1104 as section 1105; and
            (2) by inserting after section 1103 the following:

``SEC. 1104. PRESERVATION OF PRE-OCTOBER, 1998, STATE AND LOCAL TAX 
              AUTHORITY UNTIL 2006.

    ``(a) In General.--Section 1101(a) does not apply to a tax on 
Internet access that was generally imposed and actually enforced prior 
to October 1, 1998, if, before that date, the tax was authorized by 
statute and either--
          ``(1) a provider of Internet access services had a reasonable 
        opportunity to know by virtue of a rule or other public 
        proclamation made by the appropriate administrative agency of 
        the State or political subdivision thereof, that such agency 
        has interpreted and applied such tax to Internet access 
        services; or
          ``(2) a State or political subdivision thereof generally 
        collected such tax on charges for Internet access.
    ``(b) Termination.--This section shall not apply after October 1, 
2006.
    ``(c) Tax on Internet Access.--Notwithstanding section 1105(10), in 
this section the term `tax on Internet access' includes the enforcement 
or application of any preexisting tax on the sale or use of Internet 
services if that tax was generally imposed and actually enforced prior 
to October 1, 1998.''.

SEC. 4. UNIVERSAL SERVICE.

    Nothing in the Internet Tax Freedom Act shall prevent the 
imposition or collection of any fees or charges used to preserve and 
advance Federal universal service or similar State programs authorized 
by section 254 of the Communications Act of 1934.
                                 <all>