[Congressional Record (Bound Edition), Volume 146 (2000), Part 10]
[Senate]
[Pages 14425-14426]
[From the U.S. Government Publishing Office, www.gpo.gov]



  ESTABLISHING SOURCING REQUIREMENTS FOR STATE AND LOCAL TAXATION OF 
                   MOBILE TELECOMMUNICATION SERVICES

  Mr. ROTH. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of H.R. 4391, which is at the desk.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (H.R. 4391) to amend title 4 of the United States 
     Code to establish sourcing requirements for State and local 
     taxation of mobile telecommunication services.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. BROWNBACK. Mr. President, I am delighted to hail today the 
passage of the Mobile Telecommunications Sourcing Act. This legislation 
is the product of more than three year's worth of negotiations between 
the governors, cities, State tax and local tax authorities, and the 
wireless industry.
  The legislation represents an historic agreement between State and 
local governments and the wireless industry to bring sanity to the 
manner in which wireless telecommunications services are taxed.
  For as long as we have had wireless telecommunications in this 
country,

[[Page 14426]]

we have had a taxation system that is incredibly complex for carriers 
and costly for consumers. Today, there are several different 
methodologies that determine whether a taxing jurisdiction may tax a 
wireless call.
  If a call originates at a cell site located in a jurisdiction, it may 
impose a tax. If a call originates at a switch in the jurisdiction, a 
tax may be imposed. If the billing address is in the jurisdiction, a 
tax can be imposed.
  As a result, many different taxing authorities can tax the same 
wireless call. The farther you travel during a call, the greater the 
number of taxes that can be imposed upon it.
  This system is simply not sustainable as wireless calls represent an 
increasing portion of the total number of calls made throughout the 
United States. To reduce the cost of making wireless calls, Senator 
Dorgan and I introduced S. 1755, the Mobile Telecommunications Sourcing 
Act. The bill we pass today that we received from the House is 
substantively identical to our bill. While the current bill amends 
title 4 rather than title 47 and represents the drafting style of the 
House rather than the Senate, the legislation uses our language to 
accomplish our mutual goal.
  The legislation would create a nationwide, uniform system for the 
taxation of wireless calls. The only jurisdictions that would have the 
authority to tax mobile calls would be the taxing authorities of the 
customer's place of primary use, which would essentially be the 
customer's home or office.
  By creating this uniform system, Congress would be greatly 
simplifying the taxation and billing of wireless calls. The wireless 
industry would not have to keep track of multiple taxing laws for each 
wireless transaction. State and local taxing authorities would be 
relieved of burdensome audit and oversight responsibilities without 
losing the authority to tax wireless calls. And, most importantly, 
consumers would see reduced wireless rates and fewer billing headaches.
  The Mobile Telecommunications Sourcing Act is a win-win-win. It's a 
win for industry, a win for government, and a win for consumers. I 
thank Senator Dorgan for working with me in crafting our bill. And I 
would like to commend the House for sending the Senate the bill before 
us. And, most of all, I thank the groups outside of Congress for coming 
together and reaching agreement on this important issue.
  Mr. President, I ask unanimous consent that Senator Dorgan and I be 
permitted to enter into a colloquy.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. DORGAN. I wanted to ask the Senator from Kansas about the bill 
currently before the Senate, H.R. 4391, the Mobile Telecommunications 
Sourcing Act, which passed the House unanimously on Tuesday. Is this 
bill similar to S. 1755, the Mobile Telecommunications Sourcing Act, 
legislation that the Senator and I introduced last year that is 
currently on the Senate calendar?
  Mr. BROWNBACK. The Senator from North Dakota is correct. H.R. 4391 is 
substantively identical to S. 1755, which the Senator and I introduced 
last year, which is co-sponsored by every member of the Senate Commerce 
Committee, which was reported unanimously by the Senate Commerce 
Committee to the Senate, and for which the Senate Commerce Committee 
filed Senate Report No. 106-326.
  Mr. DORGAN. How does H.R. 4391 differ from S. 1755?
  Mr. BROWNBACK. H.R. 4391 amends title 4 of the U.S. Code, whereas S. 
1755 amends title 47. H.R. 4391 reflects the drafting style of the 
House, whereas S. 1755 reflects the drafting style of the Senate. H.R. 
4391 deleted the findings incorporated in section 2 of S. 1755. H.R. 
4391 also changed the order in which the definitions appear in S. 1755. 
There are no substantive differences between S. 1755 and H.R. 4391. 
Therefore, H.R. 4391 and S. 1755 are substantively identical.
  Mr. DORGAN. I thank the Senator from Kansas.
  Mr. ROTH. Mr. President, I ask unanimous consent the bill be read a 
third time and passed, the motion to reconsider be laid upon the table, 
and that any statements relating to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (H.R. 4391) was read the third time and passed.

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