[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3678 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 3678
To amend the Internet Tax Freedom Act to extend the moratorium on
certain taxes relating to the Internet and to electronic commerce.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 27, 2007
Mr. Conyers (for himself, Ms. Linda T. Sanchez of California, Mr.
Cannon, Mr. Boucher, Mr. Watt, Mr. Issa, and Mr. Sensenbrenner)
introduced the following bill; which was referred to the Committee on
the Judiciary
_______________________________________________________________________
A BILL
To amend the Internet Tax Freedom Act to extend the moratorium on
certain taxes relating to the Internet and to electronic commerce.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Internet Tax Freedom Act Amendments
Act of 2007''.
SEC. 2. MORATORIUM.
The Internet Tax Freedom Act (47 U.S.C. 151 note) is amended--
(1) in section 1101(a) by striking ``2007'' and inserting
``2011'', and
(2) in section 1104(a)(2)(A) by striking ``2007'' and
inserting ``2011''.
SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.
Section 1104 of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended by adding at the end the following:
``(c) Application of Definition.--
``(1) In general.--Effective as of November 1, 2003--
``(A) for purposes of subsection (a), the term
`Internet access' shall have the meaning given such
term by section 1104(5) of this Act, as enacted on
October 21, 1998; and
``(B) for purposes of subsection (b), the term
`Internet access' shall have the meaning given such
term by section 1104(5) of this Act as amended by
section 2(c) of the Internet Tax Nondiscrimination Act
(Public Law 108-435).
``(2) Exceptions.--Paragraph (1) shall not apply until
November 1, 2007, to a tax on Internet access that is--
``(A) generally imposed and actually enforced on
telecommunications service purchased, used, or sold by
a provider of Internet access, but only if the
appropriate administrative agency of a State or
political subdivision thereof issued a public ruling
prior to July 1, 2007, that applied such tax to such
service in a manner that is inconsistent with paragraph
(1); or
``(B) the subject of litigation instituted in a
judicial court of competent jurisdiction prior to July
1, 2007, in which a State or political subdivision is
seeking to enforce, in a manner that is inconsistent
with paragraph (1), such tax on telecommunications
service purchased, used, or sold by a provider of
Internet access.
``(3) No inference.--No inference of legislative
construction shall be drawn from this subsection or the
amendments to section 1105(5) made by the Internet Tax Freedom
Act Amendments Act of 2007 for any period prior to November 1,
2007, with respect to any tax subject to the exceptions
described in subparagraphs (A) and (B) of paragraph (2).''.
SEC. 4. DEFINITION.
Section 1105 of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended--
(1) in paragraph (1) by striking ``services'',
(2) by amending paragraph (5) to read as follows:
``(5) Internet access.--The term `Internet access'--
``(A) means a service that enables users to connect
to the Internet to access content, information, or
other services offered over the Internet;
``(B) includes the purchase, use or sale of
telecommunications by a provider of a service described
in subparagraph (A) to the extent such
telecommunications are purchased, used or sold--
``(i) to provide such service; or
``(ii) to otherwise enable users to access
content, information or other services offered
over the Internet;
``(C) includes services that are incidental to the
provision of the service described in subparagraph (A)
when furnished to users as part of such service, such
as a home page, electronic mail and instant messaging
(including voice- and video-capable electronic mail and
instant messaging), video clips, and personal
electronic storage capacity; and
``(D) does not include voice, audio or video
programming, or other products and services (except
services described in subparagraph (A), (B), or (C))
that utilize Internet protocol or any successor
protocol and for which there is a charge, regardless of
whether such charge is separately stated or aggregated
with the charge for services described in subparagraph
(A), (B), or (C).'',
(3) by amending paragraph (9) to read as follows:
``(9) Telecommunications.--The term `telecommunications'
means `telecommunications' as such term is defined in section
3(43) of the Communications Act of 1934 (47 U.S.C. 153(43)) and
`telecommunications service' as such term is defined in section
3(46) of such Act (47 U.S.C. 153(46)), and includes
communications services (as defined in section 4251 of the
Internal Revenue Code of 1986 (26 U.S.C. 4251)).'', and
(4) in paragraph (10) by adding at the end the following:
``(C) Specific exception.--Effective November 1,
2007, the term `tax on Internet access' also does not
include a State tax that--
``(i) is imposed on at least 80 percent of
business enterprises engaged in business in the
State without regard to--
``(I) the form of organization;
``(II) business activity in which
such enterprise is engaged;
``(III) minimum filing thresholds;
``(IV) whether such business
actually incurs a filing and payment
obligation; and
``(ii) was enacted between June 30, 2005,
and November 1, 2007, to replace, in whole or
in part, a tax that, pursuant to section
1105(10)(B) or a modified value-added tax, is
not a tax on Internet access.''.
SEC. 5. CONFORMING AMENDMENTS.
Section 1106 of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended--
(1) in subsection (b)(2)--
(A) in the heading by striking ``services'', and
(B) by striking ``such services'' and inserting
``such telecommunications'', and
(2) by striking ``services'' each place it appears.
SEC. 6. EFFECT ON OTHER LAWS.
Section 1107 of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended by adding at the end the following:
``(d) Certain Taxes on Internet Access.--No State shall prohibit a
provider of Internet access from--
``(1) collecting from customers, directly or indirectly,
the amount of any tax described in section 1105(10)(C) that is
imposed on Internet access revenues; or
``(2) separately stating the amount of such tax on customer
bills.''.
SEC. 7. RULE OF CONSTRUCTION.
Section 1108 of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended by striking section 1108.
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