[Congressional Record (Bound Edition), Volume 145 (1999), Part 21]
[Extensions of Remarks]
[Pages 31257-31258]
[From the U.S. Government Publishing Office, www.gpo.gov]



        THE WIRELESS TELECOMMUNICATIONS SOURCING AND PRIVACY ACT

                                 ______
                                 

                   HON. CHARLES W. ``CHIP'' PICKERING

                             of mississippi

                    in the house of representatives

                      Thursday, November 18, 1999

  Mr. PICKERING. Mr. Speaker, I rise today to introduce the Wireless 
Telecommunications Sourcing and Privacy Act, and am pleased to be 
joined in introducing this legislation by several of my colleagues, 
including Mr. Markey, Mrs. Wilson and Mr. Largent.
  This legislation is about nothing other than developing a fairer and 
simpler way to assign a wireless call to a jurisdiction for tax 
purposes. Let me be crystal clear at the outset--

[[Page 31258]]

this proposal is about how the wireless industry administers state and 
local taxes. It does not reduce or change the wireless industry's tax 
obligations. This same simplicity will also help lower the cost to 
states and localities of administering taxes on wireless services. And, 
this all comes together for the wireless consumer--greater simplicity, 
lower costs, and reduced chances of getting caught in a ``double-tax'' 
situation where two tax jurisdictions are seeking to tax the same 
revenue.
  There are some practical problems which can arise in the 
administration of state and local governments on wireless phone calls. 
For example, different jurisdictions may follow different methodologies 
making the determination of the correct taxation very difficult. 
Depending on the methodology a call could be taxed in the town or city 
where the customer is located; or, in the city or town where the 
wireless antenna is located; or, even in the city or town where the 
wireless switch is located. The bottom line--it's confusing, it's 
costly, it's a practical problem we can fix with the legislation we are 
introducing today.
  I would like to stress that this situation is born of good faith 
efforts of state and local governments to apply existing methods. The 
problem is that all existing methods do not necessarily work for 
wireless telecommunications and, due to that fact, sometimes different 
methods are applied to the same wireless call resulting in double-
taxation and confusion.
  I would like my colleagues to know that extensive discussion of 
various options to solve this problem has gone on over the past few 
years among several state and local government organizations--including 
the National Governor's Association, the National League of Cities, the 
Multistate Tax Commission, the Federation of Tax Administrators and 
others--and the Cellular Telecommunications Industry Association 
representing the wireless industry. Together, they have developed a new 
methodology for dealing with a complex problem--and that new 
methodology is embodied in the legislation I am introducing today.
  Under the Wireless Telecommunications Sourcing and Privacy Act, all 
state & local telecommunications taxes would be assigned to one 
location--the customer's place of primary use--which must be either the 
customer's home or business address.
  This new method of sourcing wireless revenues offers certainty and 
consistency in the application of tax law, and does so in a way that 
does not change the ability of states and localities to tax these 
revenues.
  I want to also make it clear that this bill in no way provides any 
determination or has any impact on the work of the Advisory Commission 
on Electronic Commerce.
  The bill also requires the General Accounting Office (GAO) to examine 
the Federal Communications Commission's (FCC) implementation of 
provisions of current law which requires the telecommunications 
industry to pay fees to recoup costs of regulatory functions. There has 
been concern that these fees have not in the past and are not presently 
being properly assessed. While I do not take a position on this matter 
at this time, I do think it is important to get a thorough examination 
of the issue. The GAO study will provide such a review.
  Furthermore, the bill includes provisions of a bill introduced and 
led through the legislative process in the House by my fellow Commerce 
Committee colleague, Mrs. Wilson, on the issue of improving the privacy 
protections afforded users of wireless communications devices. This 
bill, H.R. 514, overwhelmingly passed the House earlier this year. 
Inclusion of these provisions in this bill is a natural partnering of 
wireless telecommunications issues and will ease member consideration 
of these important concepts.
  Wireless customers will benefit because their monthly bills will be 
simpler and the possibility of double taxation of their mobile calls 
from competing jurisdictions will be greatly reduced. Tax 
administration will be simplified for both government and industry.
  I want to thank my colleagues for joining me in introducing this 
legislation. I look forward to working with all of them to ensure the 
full and speedy consideration of this proposal. I urge all my 
colleagues to support this legislation.

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