[Congressional Record Volume 144, Number 151 (Wednesday, October 21, 1998)]
[Senate]
[Page S12844]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   INTERNET DOMAIN NAME REGISTRATION

  Mr. LOTT. Mr. President, I am pleased that the Internet Tax Freedom 
Act was included in the 1998 Omnibus Appropriations bill.
  Congress wants a limited moratorium, accompanied by a careful review 
of all Internet and electronic commerce tax issues. This will give 
Congress the opportunity to properly evaluate state and local 
government interstate taxation, federal taxation and trade treatment of 
the Internet and electronic commerce. By enacting this measure, 
Congress also declared that the Internet should be free of any new 
federal taxes during the moratorium.
  Mr. President, present federal law imposes no tax specifically on the 
Internet, including domain name registrations. However, with several of 
my colleagues, I have become aware of a pertinent U.S. Federal Court 
case, Thomas et al v. National Science Foundation et al. In this case, 
the Court recently declared that Section 8003--Ratification of Internet 
Fees--of the Emergency Supplemental Appropriations Act of FY98 did 
sanction what had been previously found by the Court to be an 
unconstitutional tax on domain name registrations.
  I want to take this opportunity to state for the record that Section 
8003 was never intended by Congress to ratify a tax on the Internet, 
but only to address a fee for the Intellectual Infrastructure Fund. Let 
me be clear. Section 8003 was not an authorization of any tax, 
unconstitutional or otherwise.
  Mr. President, I am pleased this Congress rightly recognized the 
importance of the Internet and electronic commerce to America's 
economy, and the need to eliminate uncertainty and confusion 
surrounding Internet taxation policies.
  Thank you, Mr. President.

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