[Congressional Record (Bound Edition), Volume 159 (2013), Part 4]
[Senate]
[Pages 5906-5914]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 741. Mr. REID (for Mr. Enzi (for himself, Mr. Durbin, Mr. 
Alexander, and Ms. Heitkamp)) proposed an amendment to the bill S. 743, 
to restore States' sovereign rights to enforce State and local sales 
and use tax laws, and for other purposes; as follows:

       Beginning on page 2, line 10, strike ``if the Streamlined'' 
     and all that follows through page 11, line 5, and insert the 
     following:
     if any changes to the Streamlined Sales and Use Tax Agreement 
     made after the date of the enactment of this Act are not in 
     conflict with the minimum simplification requirements in 
     subsection (b)(2). A State may exercise authority under this 
     Act beginning 180 days after the State publishes notice of 
     the State's intent to exercise the authority under this Act, 
     but no earlier than the first day of the calendar quarter 
     that is at least 180 days after the date of the enactment of 
     this Act.
       (b) Alternative.--A State that is not a Member State under 
     the Streamlined Sales and Use Tax Agreement is authorized 
     notwithstanding any other provision of law to require all 
     sellers not qualifying for the small seller exception 
     described in subsection (c) to collect and remit sales and 
     use taxes with respect to remote sales sourced to that State, 
     but only if the State adopts and implements the minimum 
     simplification requirements in paragraph (2). Such authority 
     shall commence beginning no earlier than the first day of the 
     calendar quarter that is at least 6 months after the date 
     that the State--
       (1) enacts legislation to exercise the authority granted by 
     this Act--
       (A) specifying the tax or taxes to which such authority and 
     the minimum simplification requirements in paragraph (2) 
     shall apply; and
       (B) specifying the products and services otherwise subject 
     to the tax or taxes identified by the State under 
     subparagraph (A) to which the authority of this Act shall not 
     apply; and
       (2) implements each of the following minimum simplification 
     requirements:
       (A) Provide--
       (i) a single entity within the State responsible for all 
     State and local sales and use tax administration, return 
     processing, and audits for remote sales sourced to the State;
       (ii) a single audit of a remote seller for all State and 
     local taxing jurisdictions within that State; and
       (iii) a single sales and use tax return to be used by 
     remote sellers to be filed with the single entity responsible 
     for tax administration.
     A State may not require a remote seller to file sales and use 
     tax returns any more frequently than returns are required for 
     nonremote sellers or impose requirements on remote sellers 
     that the State does not impose on nonremote sellers with 
     respect to the collection of sales and use taxes under this 
     Act. No local jurisdiction may require a remote seller to 
     submit a sales and use tax return or to collect sales and use 
     taxes other than as provided by this paragraph.
       (B) Provide a uniform sales and use tax base among the 
     State and the local taxing jurisdictions within the State 
     pursuant to paragraph (1).
       (C) Source all remote sales in compliance with the sourcing 
     definition set forth in section 4(7).
       (D) Provide--
       (i) information indicating the taxability of products and 
     services along with any product and service exemptions from 
     sales and use tax in the State and a rates and boundary 
     database;

[[Page 5907]]

       (ii) software free of charge for remote sellers that 
     calculates sales and use taxes due on each transaction at the 
     time the transaction is completed, that files sales and use 
     tax returns, and that is updated to reflect rate changes as 
     described in subparagraph (H); and
       (iii) certification procedures for persons to be approved 
     as certified software providers.
     For purposes of clause (iii), the software provided by 
     certified software providers shall be capable of calculating 
     and filing sales and use taxes in all States qualified under 
     this Act.
       (E) Relieve remote sellers from liability to the State or 
     locality for the incorrect collection, remittance, or 
     noncollection of sales and use taxes, including any penalties 
     or interest, if the liability is the result of an error or 
     omission made by a certified software provider.
       (F) Relieve certified software providers from liability to 
     the State or locality for the incorrect collection, 
     remittance, or noncollection of sales and use taxes, 
     including any penalties or interest, if the liability is the 
     result of misleading or inaccurate information provided by a 
     remote seller.
       (G) Relieve remote sellers and certified software providers 
     from liability to the State or locality for incorrect 
     collection, remittance, or noncollection of sales and use 
     taxes, including any penalties or interest, if the liability 
     is the result of incorrect information or software provided 
     by the State.
       (H) Provide remote sellers and certified software providers 
     with 90 days notice of a rate change by the State or any 
     locality in the State and update the information described in 
     subparagraph (D)(i) accordingly and relieve any remote seller 
     or certified software provider from liability for collecting 
     sales and use taxes at the immediately preceding effective 
     rate during the 90-day notice period if the required notice 
     is not provided.
       (c) Small Seller Exception.--A State is authorized to 
     require a remote seller to collect sales and use taxes under 
     this Act only if the remote seller has gross annual receipts 
     in total remote sales in the United States in the preceding 
     calendar year exceeding $1,000,000. For purposes of 
     determining whether the threshold in this section is met, the 
     gross annual receipts from remote sales of 2 or more persons 
     shall be aggregated if--
       (1) such persons are related to the remote seller within 
     the meaning of subsections (b) and (c) of section 267 or 
     section 707(b)(1) of the Internal Revenue Code of 1986; or
       (2) such persons have 1 or more ownership relationships and 
     such relationships were designed with a principal purpose of 
     avoiding the application of these rules.

     SEC. 3. LIMITATIONS.

       (a) In General.--Nothing in this Act shall be construed 
     as--
       (1) subjecting a seller or any other person to franchise, 
     income, occupation, or any other type of taxes, other than 
     sales and use taxes;
       (2) affecting the application of such taxes; or
       (3) enlarging or reducing State authority to impose such 
     taxes.
       (b) No Effect on Nexus.--This Act shall not be construed to 
     create any nexus or alter the standards for determining nexus 
     between a person and a State or locality.
       (c) No Effect on Seller Choice.--Nothing in this Act shall 
     be construed to deny the ability of a remote seller to deploy 
     and utilize a certified software provider of the seller's 
     choice.
       (d) Licensing and Regulatory Requirements.--Nothing in this 
     Act shall be construed as permitting or prohibiting a State 
     from--
       (1) licensing or regulating any person;
       (2) requiring any person to qualify to transact intrastate 
     business;
       (3) subjecting any person to State or local taxes not 
     related to the sale of products or services; or
       (4) exercising authority over matters of interstate 
     commerce.
       (e) No New Taxes.--Nothing in this Act shall be construed 
     as encouraging a State to impose sales and use taxes on any 
     products or services not subject to taxation prior to the 
     date of the enactment of this Act.
       (f) No Effect on Intrastate Sales.--The provisions of this 
     Act shall apply only to remote sales and shall not apply to 
     intrastate sales or intrastate sourcing rules. States granted 
     authority under section 2(a) shall comply with all intrastate 
     provisions of the Streamlined Sales and Use Tax Agreement.
       (g) No Effect on Mobile Telecommunications Sourcing Act.--
     Nothing in this Act shall be construed as altering in any 
     manner or preempting the Mobile Telecommunications Sourcing 
     Act (4 U.S.C. 116-126).

     SEC. 4. DEFINITIONS AND SPECIAL RULES.

       In this Act:
       (1) Certified software provider.--The term ``certified 
     software provider'' means a person that--
       (A) provides software to remote sellers to facilitate State 
     and local sales and use tax compliance pursuant to section 
     2(b)(2)(D)(ii); and
       (B) is certified by a State to so provide such software.
       (2) Locality; local.--The terms ``locality'' and ``local'' 
     refer to any political subdivision of a State.
       (3) Member state.--The term ``Member State''--
       (A) means a Member State as that term is used under the 
     Streamlined Sales and Use Tax Agreement as in effect on the 
     date of the enactment of this Act; and
       (B) does not include any associate member under the 
     Streamlined Sales and Use Tax Agreement.
       (4) Person.--The term ``person'' means an individual, 
     trust, estate, fiduciary, partnership, corporation, limited 
     liability company, or other legal entity, and a State or 
     local government.
       (5) Remote sale.--The term ``remote sale'' means a sale 
     into a State, as determined under the sourcing rules under 
     paragraph (7), in which the seller would not legally be 
     required to pay, collect, or remit State or local sales and 
     use taxes unless provided by this Act.
       (6) Remote seller.--The term ``remote seller'' means a 
     person that makes remote sales in the State.
       (7) Sourced.--For purposes of a State granted authority 
     under section 2(b), the location to which a remote sale is 
     sourced refers to the location where the product or service 
     sold is received by the purchaser, based on the location 
     indicated by instructions for delivery that the purchaser 
     furnishes to the seller. When no delivery location is 
     specified, the remote sale is sourced to the customer's 
     address that is either known to the seller or, if not known, 
     obtained by the seller during the consummation of the 
     transaction, including the address of the customer's payment 
     instrument if no other address is available. If an address is 
     unknown and a billing address cannot be obtained, the remote 
     sale is sourced to the address of the seller from which the 
     remote sale was made. A State granted authority under section 
     2(a) shall comply with the sourcing provisions of the 
     Streamlined Sales and Use Tax Agreement.
       (8) State.--The term ``State'' means each of the several 
     States, the District of Columbia, the Commonwealth of Puerto 
     Rico, Guam, American Samoa, the United States Virgin Islands, 
     the Commonwealth of the Northern Mariana Islands, and any 
     other territory or possession of the United States, and any 
     tribal organization (as defined in section 4 of the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450b)).
                                 ______
                                 
  SA 742. Mrs. SHAHEEN (for herself and Ms. Ayotte) submitted an 
amendment intended to be proposed by her to the bill S. 743, to restore 
States' sovereign rights to enforce State and local sales and use tax 
laws, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 7, between lines 8 and 9, insert the following:
       (d) Exception for Remote Sellers Incorporated in States 
     That Do Not Have Sales Tax.--A State is not authorized to 
     require a remote seller to collect sales and use taxes under 
     this Act if the remote seller is incorporated in a State that 
     does not collect sales and use taxes with respect to products 
     and services sold in such State.
                                 ______
                                 
  SA 743. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 2, beginning on line 12, strike ``A State'' and all 
     that follows through line 17 and insert the following:
     A State may exercise authority under this subsection--
       (1) in the case of a State which has adopted or ratified 
     the Streamlined Sales and Use Tax Agreement after December 
     31, 2010, beginning 90 days after the State publishes notice 
     of the State's intent to exercise the authority under this 
     Act, but no earlier than the first calendar quarter that is 
     at least 90 days after the date of the enactment of this Act; 
     and
       (2) in the case of a State which has adopted or ratified 
     the Streamlined Sales and Use Tax Agreement before January 1, 
     2011, beginning after the date the State enacts legislation 
     to exercise the authority granted under this Act, but no 
     earlier than the first calendar quarter that is at least 90 
     days after the date of the enactment of this Act.
                                 ______
                                 
  SA 744. Ms. COLLINS (for herself and Mr. King) submitted an amendment 
intended to be proposed by her to the bill S. 743, to restore States' 
sovereign rights to enforce State and local sales and use tax laws, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. LIMITATION ON INITIAL COLLECTION OF SALES AND USE 
                   TAXES FROM REMOTE SALES.

       Notwithstanding the last sentence of section 2(a) or the 
     second sentence of section 2(b), a State may not begin to 
     exercise the authority under this Act--

[[Page 5908]]

       (1) before the date that is 1 year after the date of the 
     enactment of this Act; and
       (2) during the period beginning on October 1 and ending on 
     December 31 of any calendar year.
                                 ______
                                 
  SA 745. Mr. DURBIN proposed an amendment to amendment SA 741 proposed 
by Mr. Reid (for Mr. Enzi (for himself, Mr. Durbin, Mr. Alexander, and 
Ms. Heitkamp)) to the bill S. 743, to restore States' sovereign rights 
to enforce State and local sales and use tax laws, and for other 
purposes; as follows:

       At the end, add the following:
       This Act shall become effective 1 day after enactment.
                                 ______
                                 
  SA 746. Mr. MERKLEY submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 7, between lines 8 and 9, insert the following:
       (d) Compensation for Compliance Costs.--
       (1) In general.--In the case of a non-sales tax state 
     remote seller that collects and remits sales and use taxes to 
     a State pursuant to the authority granted under this Act, 
     such State shall fully reimburse the seller for any costs or 
     expenses related to the collection and remittance of such 
     taxes (as determined pursuant to paragraph (2)).
       (2) Determination of reimbursement rate.--For purposes of 
     this subsection, the rate and method of reimbursement shall 
     be determined by the Secretary of the Treasury, pursuant to 
     such criteria as are determined appropriate by the Secretary.
       (3) Definition.--For purposes of this subsection, the term 
     ``non-sales tax state remote seller'' means a remote seller 
     that is headquartered in and has a majority of its full-time 
     employees located in a State that does not maintain a 
     statewide sales tax or equivalent use tax.
                                 ______
                                 
  SA 747. Mr. MERKLEY submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 7. DEDUCTION FOR COSTS OF COMPLIANCE.

       (a) In General.--Part VI of subchapter B of chapter 1 is 
     amended by adding at the end the following new section:

     ``SEC. 199A. DEDUCTION FOR COSTS OF COMPLIANCE UNDER THE 
                   MARKETPLACE FAIRNESS ACT.

       ``(a) In General.--If a non-sales tax state remote seller 
     (as defined in subsection (b)) elects the application of this 
     section, such seller shall be allowed a deduction for the 
     taxable year equal to 1 percent of annual gross receipts.
       ``(b) Definition.--The term `non-sales tax state remote 
     seller' means a remote seller (as defined in section 4(6) of 
     the Marketplace Fairness Act of 2013) that is headquartered 
     in and has a majority of its full-time employees located in a 
     State that does not maintain a statewide sales tax or 
     equivalent use tax.
       ``(c) Denial of Double Benefit.--In the case of a non-sales 
     tax state remote seller that elects application of this 
     section, no deduction shall be allowed for any expense 
     related to the collection and remittance of sales and use 
     taxes pursuant to the requirements of the Marketplace 
     Fairness Act of 2013 for which a deduction is allowed to the 
     seller under any other provision of this chapter.''.
       (b) Clerical Amendments.--The table of sections for part VI 
     of subchapter B of chapter 1 is amended by adding at the end 
     the following new item:

``Sec. 199A. Deduction of costs of compliance.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 748. Mr. MERKLEY submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       Beginning on page 6, strike line 18 and all that follows 
     through page 7, line 8, and insert the following:
       (c) Small Seller Exception.--
       (1) In general.--A State is authorized to require a remote 
     seller to collect sales and use taxes under this Act only if 
     the remote seller has gross annual receipts in total remote 
     sales in the United States in the preceding calendar year 
     exceeding the applicable amount (as determined under 
     paragraph (2)). For purposes of determining whether the 
     applicable amount in this subsection is met--
       (A) the sales of all persons related within the meaning of 
     subsections (b) and (c) of section 267 or section 707(b)(1) 
     of the Internal Revenue Code of 1986 shall be aggregated; or
       (B) persons with 1 or more ownership relationships shall 
     also be aggregated if such relationships were designed with a 
     principal purpose of avoiding the application of these rules.
       (2) Applicable amount.--For purposes of paragraph (1), the 
     applicable amount for the preceding calendar year shall be 
     equal to--
       (A) for 2012 and 2013, $5,000,000;
       (B) for 2014, $4,000,000;
       (C) for 2015, $3,000,000; and
       (D) for 2016, $2,000,000.
                                 ______
                                 
  SA 749. Mr. TOOMEY submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 6, line 22, strike ``$1,000,000'' and insert 
     ``$10,000,000''.
                                 ______
                                 
  SA 750. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. PROPERLY REDUCING OVEREXEMPTIONS FOR SPORTS ACT.

       (a) In General.--This section may be cited as the 
     ``Properly Reducing Overexemptions for Sports Act'' or the 
     ``PRO Sports Act''.
       (b) Findings.--Congress makes the following findings:
       (1) The National Football League (NFL), National Hockey 
     League (NHL), PGA Tour, and Ladies Professional Golf 
     Association (LPGA) each have league offices that are 
     registered with the Internal Revenue Service as non-profit 
     organizations under section 501(c)(6) of the Internal Revenue 
     Code of 1986.
       (2) League-wide operations of the NFL, NHL, PGA Tour, and 
     LPGA generate an estimated $13 billion in annual revenue, and 
     these businesses are unmistakably organized for profit and to 
     promote their brands.
       (3) Separate from their subsidiaries, the nonprofit league 
     offices of the NFL, NHL, PGA Tour, and LPGA had annual gross 
     receipts of $184.3 million, $89.1 million, $1.4 billion, and 
     $73.7 million in 2010, respectively, for a combined total of 
     over $1.7 billion, according to each organization's publicly 
     available Form 990 filed with the Internal Revenue Service.
       (4) According to the Internal Revenue Service, section 
     501(c)(6) of the Internal Revenue Code of 1986 is for groups 
     looking to promote a ``common business interest and not to 
     engage in a regular business of a kind ordinarily carried on 
     for profit''.
       (5) According to the Internal Revenue Service, businesses 
     that conduct operations for profit on a ``cooperative basis'' 
     should not qualify for tax-exempt treatment under section 
     501(c)(6) of the Internal Revenue Code of 1986.
       (c) Elimination of Specific Exemption for Professional 
     Football Leagues.--Paragraph (6) of section 501(c) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``, or professional football leagues 
     (whether or not administering a pension fund for football 
     players)'', and
       (2) by inserting ``or'' after ``real-estate boards,''.
       (d) Special Rules Relating to Professional Sports 
     Leagues.--Section 501 of the Internal Revenue Code of 1986 is 
     amended--
       (1) by redesignating subsection (s) as subsection (t), and
       (2) by inserting after subsection (r) the following new 
     subsection:
       ``(s) Special Rules Relating to Professional Sports 
     Leagues.--No organization or entity shall be treated as 
     described in subsection (c)(6) if such organization or 
     entity--
       ``(1) is a professional sports league, organization, or 
     association, a substantial activity of which is to foster 
     national or international professional sports competitions 
     (including by managing league business affairs, officiating 
     or providing referees, coordinating schedules, managing 
     sponsorships or broadcast sales, operating loan programs for 
     competition facilities, or overseeing player conduct) and
       ``(2) has annual gross receipts in excess of 
     $10,000,000.''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.
                                 ______
                                 
  SA 751. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REPORT ON THE ABUSE OF TAX-EXEMPT STATUS BY 
                   CHARITABLE ORGANIZATIONS.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of

[[Page 5909]]

     Treasury, or the Secretary's delegate, shall submit to 
     Congress a report on organizations that are described in 
     section 501(c)(3) of the Internal Revenue Code of 1986 and 
     exempt from tax under section 501(a) of the Internal Revenue 
     Code of 1986. Such report shall include information on the 
     following:
       (1) The number of such organizations at the time of the 
     report and the number of organizations 10 years prior to that 
     time.
       (2) The number of such organizations that have had the 
     exemption from tax under section 501(a) of the Internal 
     Revenue Code of 1986 revoked in each year after 2007.
       (3) The number and nature of allegations of problems made 
     to the Internal Revenue Service with respect to such 
     organizations that were founded by prominent athletes, and a 
     description of any actions taken by the Internal Revenue 
     Service in response to any such allegations.
       (4) A description of the challenges to the Internal Revenue 
     Services in overseeing such organizations.
       (5) The number of criminal investigations of such 
     organizations conducted by the Internal Revenue Service 
     during the period beginning in 2010 and ending on the date 
     the report is submitted.
       (6) An explanation of any problems the Internal Revenue 
     Service has had with United States Attorneys in prosecuting 
     any criminal violations by such organizations.
                                 ______
                                 
  SA 752. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 7. ELIMINATION OF DEDUCTIONS FOR MILLIONAIRES AND 
                   BILLIONAIRES.

       (a) No Mortgage Interest Deduction for Millionaires and 
     Billionaires.--Section 163(h)(4) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subparagraph:
       ``(G) No deduction for millionaires and billionaires.--No 
     deduction shall be allowed by reason of paragraph (2)(D) for 
     any taxable year with respect to any taxpayer with an 
     adjusted gross income equal to or greater than $1,000,000 for 
     such taxable year.''.
       (b) No Rental Expense Deduction for Millionaires and 
     Billionaires.--Section 212 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new flush 
     sentence:

     ``Paragraph (2) shall not apply for any taxable year with 
     respect to any taxpayer with an adjusted gross income equal 
     to or greater than $1,000,000 for such taxable year.''.
       (c) No Gambling Loss Deduction for Millionaires and 
     Billionaires.--Section 165(d) of the Internal Revenue Code of 
     1986 is amended by adding at the end the following: ``In the 
     case of a taxpayer with an adjusted gross income equal to or 
     greater than $1,000,000 for the taxable year, the preceding 
     sentence shall not apply for any taxable year.''.
       (d) No Discharge of Indebtedness Deduction for Millionaires 
     and Billionaires.--Section 108 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(j) No Deduction for Millionaires and Billionaires.--No 
     exclusion shall be allowed by reason of this section for any 
     taxable year with respect to any taxpayer with an adjusted 
     gross income equal to or greater than $1,000,000 for such 
     taxable year.''.
       (e) No Electric Plug-in Vehicle Tax Credit for Millionaires 
     and Billionaires.--Section 30D(f) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(8) No credit for millionaires and billionaires.--No 
     credit described in subsection (c)(2) shall be allowed under 
     this section for any taxable year with respect to any 
     taxpayer with an adjusted gross income equal to or greater 
     than $1,000,000 for such taxable year.''.
       (f) No Household and Dependent Care Credit for Millionaires 
     and Billionaires.--Section 21 of the Internal Revenue Code of 
     1986 is amended by redesignating subsection (f) as subsection 
     (g) and by inserting after subsection (e) the following new 
     subsection:
       ``(f) No Credit for Millionaires and Billionaires.--No 
     credit shall be allowed under this section for any taxable 
     year with respect to any taxpayer with an adjusted gross 
     income equal to or greater than $1,000,000 for such taxable 
     year.''.
       (g) No Residential Energy Efficient Property Credit for 
     Millionaires and Billionaires.--Section 25D(e) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(9) No credit for millionaires and billionaires.--No 
     credit shall be allowed under this section for any taxable 
     year with respect to any taxpayer with an adjusted gross 
     income equal to or greater than $1,000,000 for such taxable 
     year.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2012.
                                 ______
                                 
  SA 753. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. INELIGIBILITY OF PERSONS HAVING SERIOUSLY 
                   DELINQUENT TAX DEBTS FOR FEDERAL EMPLOYMENT.

       (a) In General.--Chapter 73 of title 5, United States Code, 
     is amended by adding at the end the following:

``SUBCHAPTER VIII--INELIGIBILITY OF PERSONS HAVING SERIOUSLY DELINQUENT 
                    TAX DEBTS FOR FEDERAL EMPLOYMENT

     ``Sec. 7381. Ineligibility of persons having seriously 
       delinquent tax debts for Federal employment

       ``(a) Definitions.--For purposes of this section--
       ``(1) the term `seriously delinquent tax debt' means an 
     outstanding debt under the Internal Revenue Code of 1986 for 
     which a notice of lien has been filed in public records 
     pursuant to section 6323 of such Code, except that such term 
     does not include--
       ``(A) a debt that is being paid in a timely manner pursuant 
     to an agreement under section 6159 or section 7122 of such 
     Code; and
       ``(B) a debt with respect to which a collection due process 
     hearing under section 6330 of such Code, or relief under 
     subsection (a), (b), or (f) of section 6015 of such Code, is 
     requested or pending; and
       ``(2) the term `Federal employee' means--
       ``(A) an employee, as defined by section 2105; and
       ``(B) an employee of the United States Postal Service or of 
     the Postal Regulatory Commission.
       ``(b) Ineligibility for Federal Employment.--An individual 
     who has a seriously delinquent tax debt shall be ineligible 
     to be appointed, or to continue serving, as a Federal 
     employee.
       ``(c) Regulations.--The Office of Personnel Management 
     shall, for purposes of carrying out this section with respect 
     to the executive branch, prescribe any regulations which the 
     Office considers necessary.''.
       (b) Clerical Amendment.--The analysis for chapter 73 of 
     title 5, United States Code, is amended by adding at the end 
     the following:

``subchapter viii--ineligibility of persons having seriously delinquent 
                    tax debts for federal employment

``7381. Ineligibility of persons having seriously delinquent tax debts 
              for Federal employment.''.
                                 ______
                                 
  SA 754. Mr. HATCH submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 11, strike lines 18 through 23 and insert the 
     following

     SEC. __. TERMINATION OF AUTHORITY.

       No State shall be authorized to require sellers to collect 
     and remit sales and use taxes with respect to remote sales 
     sourced in such State after the date that is 5 years after 
     the date of the enactment of this Act.

     SEC. __. REQUIREMENT FOR 3-YEAR STATUTE OF LIMITATIONS.

       No State shall be authorized to require sellers to collect 
     and remit sales and use taxes with respect to remote sales 
     sourced to that State under subsection (a) or (b) of section 
     2 unless such State adopts and implements a requirement 
     providing that no proceeding in court may begin for any 
     failure by a remote seller to collect or remit sales and use 
     taxes under the authority of this Act after the date that is 
     3 years after the date on which such tax was required to be 
     remitted.

     SEC. __. STUDY ON COSTS OF COMPLIANCE.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study on--
       (1) the costs incurred by remote sellers in complying with 
     any requirements imposed by States pursuant to the authority 
     granted under this Act; and
       (2) whether, and under what circumstances, the authority 
     granted under this Act allows States to impose taxes on 
     financial transactions or contributions to retirement savings 
     vehicles.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall report 
     to the Committee on Finance of the Senate and the Committee 
     on the Judiciary of the House of Representatives on the 
     results of the study conducted under subsection (a).

     SEC. __. EXCEPTION FOR DIGITAL GOODS.

       (a) In General.--The authority granted under section 2 
     shall not apply to remote sales of digital goods.
       (b) Digital Goods.--For purposes of this section , the term 
     ``digital good'' means any good or product that is delivered 
     or transferred electronically, including software, 
     information maintained in digital format, digital audio-
     visual works, digital audio works, and digital books.

[[Page 5910]]



     SEC. __. REQUIREMENT FOR REMOTE SELLER COMPENSATION.

       (a) In General.--No State shall be authorized to require 
     sellers to collect and remit sales and use taxes with respect 
     to remote sales sourced to that State under subsection (a) or 
     (b) of section 2 unless such State adopts and implements a 
     requirement providing a remote seller compensation for the 
     collection and remission of sales and use taxes in an amount 
     not less than the applicable percentage of the amount of such 
     taxes collected by the remote seller.
       (b) Applicable Percentage.--For purposes of subsection (a), 
     the applicable percentage is--
       (1) for any tax collected during the period of beginning on 
     the date the State first exercises the authority under this 
     Act and ending on the date that is 2 years after such date, 
     10 percent;
       (2) for any tax collected during the period beginning on 
     the first day after the period described in paragraph (1) 
     ends and ending on the date that is 2 years after such date, 
     8 percent;
       (3) for any tax collected during the period beginning on 
     the first day after the period described in paragraph (2) 
     ends and ending on the date that is 1 year after such date, 6 
     percent; and
       (4) for any tax collected after the period described in 
     paragraph (3) ends), 0 percent.

     SEC. __. INCREASE AND INFLATION ADJUSTMENT TO THRESHOLD FOR 
                   SMALL SELLER EXCEPTION.

       (a) Increase in Threshold.--Section 2(c) shall be applied 
     by substituting ``$10,000,000'' for ``$1,000,000''.
       (b) Inflation Adjustment.--
       (1) In general.--In the case of a calendar year beginning 
     after 2013, the $10,000,000 amount under subsection (a) shall 
     be increased by an amount equal to--
       (A) such dollar amount, multiplied by
       (B) the cost-of-living adjustment determined under section 
     1(f)(3) of the Internal Revenue Code of 1986 for the calendar 
     year, determined by substituting `calendar year 2012' for 
     `calendar year 1992' in subparagraph (B) thereof.
       (2) Rounding.--If any amount as adjusted under paragraph 
     (1) is not a multiple of $10,000, such amount shall be 
     rounded to the next lowest multiple of $10,000.
                                 ______
                                 
  SA 755. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, insert the following:

     SEC. ___. REDUCTION IN CORPORATE TAX RATE.

       (a) In General.--Subsection (b) of section 11 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Amount of Tax.--The amount of tax imposed by 
     subsection (a) shall be the sum of--
       ``(1) 15 percent of so much of the taxable income as does 
     not exceed $50,000, and
       ``(2) 25 percent of so much of the taxable income as 
     exceeds $50,000.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
                                 ______
                                 
  SA 756. Mr. PAUL submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, insert the following:

     SEC. ___. REPEAL OF ESTATE AND GIFT TAXES.

       (a) In General.--Subtitle B of the Internal Revenue Code of 
     1986 is hereby repealed.
       (b) Effective Date.--The repeal made by paragraph (1) shall 
     apply to the estates of decedents dying, and gifts and 
     generation-skipping transfers made, after December 31, 2013.
                                 ______
                                 
  SA 757. Mrs. SHAHEEN (for herself, Mr. Wyden, Mr. Baucus, and Mr. 
Tester) submitted an amendment intended to be proposed by her to the 
bill S. 743, to restore States' sovereign rights to enforce State and 
local sales and use tax laws, and for other purposes; which was ordered 
to lie on the table; as follows:

       On page 7, between lines 8 and 9, insert the following:
       (c) Limitation.--
       (1) In general.--The authority granted under subsections 
     (a) and (b) shall not apply with respect to any remote seller 
     that is not a qualifying remote seller.
       (2) Qualifying remote seller.--For purposes of this 
     subsection--
       (A) In general.--The term ``qualifying remote seller'' 
     means--
       (i) any remote seller that meets the ownership requirements 
     of subparagraph (B); or
       (ii) any remote seller the majority of domestic employees 
     of which are primarily employed at a location in a 
     participating State.
       (B) Ownership requirements.--A remote seller meets the 
     ownership requirements of this subparagraph if--
       (i) in the case of a remote seller that is a publicly 
     traded corporation, more than 50 percent of the covered 
     employees (as defined in section 162(m)(3)) of the Internal 
     Revenue Code of 1986) of such corporation reside in 
     participating States;
       (ii) in the case of a remote seller that is a corporation 
     (other than a publicly traded corporation), more than 50 
     percent of the stock (by vote or value) of such corporation 
     is held by individuals residing in participating States;
       (iii) in the case of a remote seller that is a partnership, 
     more than 50 percent of the profits interests or capital 
     interests in such partnership is held by individuals residing 
     in participating States; and
       (iv) in the case of any other remote seller, more than 50 
     percent of the beneficial interests in the entity is held by 
     individuals residing in participating States.
       (C) Attribution rules.--For purposes of subparagraph (B), 
     the rules of section 318(a) of the Internal Revenue Code of 
     1986 shall apply.
       (D) Aggregation rules.--For purposes of this paragraph, all 
     persons treated as a single employer under subsection (a) or 
     (b) of section 52 of the Internal Revenue Code of 1986 or 
     subsection (m) or (o) of section 414 of such Code shall be 
     treated as one person.
       (3) Participating state.--The term ``participating State'' 
     means--
       (A) a Member State under the Streamlined Sales and Use Tax 
     Agreement which has exercised authority under subsection (a); 
     or
       (B) a State that--
       (i) is not a Member State under the Streamlined Sales and 
     Use Tax Agreement; and
       (ii) has met the requirements of paragraphs (1) and (2) of 
     subsection (b) for exercising the authority granted under 
     such subsection.
                                 ______
                                 
  SA 758. Ms. AYOTTE (for herself and Mrs. Shaheen) submitted an 
amendment intended to be proposed by her to the bill S. 743, to restore 
States' sovereign rights to enforce State and local sales and use tax 
laws, and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 4, line 9, insert ``A State may not require a 
     remote seller to transfer any data that such State requests 
     for an audit unless a State in which the remote seller is 
     located first authorizes such transfer.'' after 
     ``paragraph.''.
                                 ______
                                 
  SA 759. Ms. AYOTTE submitted an amendment intended to be proposed by 
her to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 7, between lines 8 and 9, insert the following:
       (d) Additional Requirement to Reduce Income or Business 
     Taxes.--No State shall be authorized to require sellers to 
     collect and remit sales and use taxes with respect to remote 
     sales sourced to that State under subsection (a) or (b) 
     unless such State has enacted into law a requirement that the 
     revenue collected by such State from income or business taxes 
     be reduced by the amount of any revenue collected and 
     remitted to such State by reason of the authority granted 
     under such subsections.
                                 ______
                                 
  SA 760. Ms. AYOTTE submitted an amendment intended to be proposed by 
her to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 7, between lines 8 and 9, insert the following:
       (d) Exemption for Businesses Affected by the Patient 
     Protection and Affordable Care Act.--A State is not 
     authorized to require a remote seller to collect sales and 
     use taxes under this Act if the remote seller submits to the 
     Secretary of the Treasury certification, under penalty of 
     perjury, that, as a result of the Patient Protection and 
     Affordable Care Act (Public Law 11-148), the remote seller--
       (1) is subject to higher health care premiums for its 
     employees; or
       (2) is unable to hire new employees.
                                 ______
                                 
  SA 761. Ms. AYOTTE (for herself and Mrs. Shaheen) submitted an 
amendment intended to be proposed by her to the bill S. 743, to restore 
States' sovereign rights to enforce State and local sales and use tax 
laws, and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end, add the following:

     SEC. __. PROHIBITION ON TAXPAYER BAILOUTS TO STATES 
                   EXERCISING AUTHORITY UNDER THIS ACT.

       Notwithstanding any other provision of law, no Federal 
     funds may be used to purchase or guarantee obligations of, 
     issue lines

[[Page 5911]]

     of credit to, provide direct or indirect access to any 
     financing provided by the United States Government to, or 
     provide direct or indirect grants and aid to, any State 
     government, municipal government, local government, or county 
     government that has exercised authority under this Act and 
     which, on or after the date of enactment of this Act, has 
     defaulted on its obligations, is at risk of defaulting, or is 
     likely to default, absent such assistance from the United 
     States Government.
                                 ______
                                 
  SA 762. Ms. AYOTTE submitted an amendment intended to be proposed by 
her to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 7. PUBLIC REFERENDUM REQUIREMENT.

       A State shall not be authorized under this Act to require 
     sellers to collect and remit sales and use taxes with respect 
     to remote sales sourced to that State unless the citizens of 
     the State in which the remote seller is located have voted, 
     by a referendum or other means under the laws of such State, 
     to approve the exercise of such authority.
                                 ______
                                 
  SA 763. Ms. AYOTTE submitted an amendment intended to be proposed by 
her to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. PROHIBITION ON COLLECTION OF PERSONALIZED DATA BY 
                   FEDERAL AGENCIES.

       A Federal agency shall not collect or otherwise maintain 
     any record that contains personalized data and is generated 
     in connection with the collection and remittance of sales and 
     use taxes from remote sellers under the authority granted 
     under this Act.
                                 ______
                                 
  SA 764. Mr. THUNE submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of the bill, insert the following:

           TITLE II--DIGITAL GOODS AND SERVICES TAX FAIRNESS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Digital Goods and Services 
     Tax Fairness Act of 2013''.

     SEC. 202. MULTIPLE AND DISCRIMINATORY TAXES PROHIBITED.

       No State or local jurisdiction shall impose multiple or 
     discriminatory taxes on the sale or use of a digital good or 
     a digital service.

     SEC. 203. SOURCING LIMITATION.

       Subject to section 206(a), taxes on the sale of a digital 
     good or a digital service may only be imposed by a State or 
     local jurisdiction whose territorial limits encompass the 
     customer tax address.

     SEC. 204. CUSTOMER TAX ADDRESS.

       (a) Seller Obligation.--
       (1) In general.--Subject to subsection (e)(2), a seller 
     shall be responsible for obtaining and maintaining in the 
     ordinary course of business the customer tax address with 
     respect to the sale of a digital good or a digital service, 
     and shall be responsible for collecting and remitting the 
     correct amount of tax for the State and local jurisdictions 
     whose territorial limits encompass the customer tax address 
     if the State has the authority to require such collection and 
     remittance by the seller.
       (2) Certain transactions.--When a customer tax address is 
     not a business location of the seller under clause (i) of 
     section 207(2)(A)--
       (A) if the sale is a separate and discrete transaction, 
     then a seller shall use reasonable efforts to obtain a 
     customer tax address, as such efforts are described in 
     clauses (iii), (iv), and (v) of section 207(2)(A), before 
     resorting to using a customer tax address as determined by 
     clause (vi) of such section 207(2)(A); and
       (B) if the sale is not a separate and discrete transaction, 
     then a seller shall use reasonable efforts to obtain a 
     customer tax address, as such efforts are described in 
     clauses (ii), (iii), (iv), and (v) of section 207(2)(A), 
     before resorting to using a customer tax address as 
     determined by clause (vi) of such section 207(2)(A).
       (b) Reliance on Customer-provided Information.--A seller 
     that relies in good faith on information provided by a 
     customer to determine a customer tax address shall not be 
     held liable for any additional tax based on a different 
     determination of that customer tax address by a State or 
     local jurisdiction or court of competent jurisdiction, except 
     if and until binding notice is given as provided in 
     subsection (c).
       (c) Address Correction.--If a State or local jurisdiction 
     is authorized under State law to administer a tax, and the 
     jurisdiction determines that the customer tax address 
     determined by a seller is not the customer tax address that 
     would have been determined under section 207(2)(A) if the 
     seller had the additional information provided by the State 
     or local jurisdiction, then the jurisdiction may give binding 
     notice to the seller to correct the customer tax address on a 
     prospective basis, effective not less than 45 days after the 
     date of such notice, if--
       (1) when the determination is made by a local jurisdiction, 
     such local jurisdiction obtains the consent of all affected 
     local jurisdictions within the State before giving such 
     notice of determination; and
       (2) before the State or local jurisdiction gives such 
     notice of determination, the customer is given an opportunity 
     to demonstrate in accordance with applicable State or local 
     tax administrative procedures that the address used is the 
     customer tax address.
       (d) Coordination With Sourcing of Mobile Telecommunications 
     Service.--
       (1) In general.--If--
       (A) a digital good or a digital service is sold to a 
     customer by a home service provider of mobile 
     telecommunications service that is subject to being sourced 
     under section 117 of title 4, United States Code, or the 
     charges for a digital good or a digital service are billed to 
     the customer by such a home service provider; and
       (B) the digital good or digital service is delivered, 
     transferred, or provided electronically by means of mobile 
     telecommunications service that is deemed to be provided by 
     such home service provider under section 117 of such title,

     then the home service provider and, if different, the seller 
     of the digital good or digital service, may presume that the 
     customer's place of primary use for such mobile 
     telecommunications service is the customer tax address 
     described in section 207(2)(B) with respect to the sale of 
     such digital good or digital service.
       (2) Definitions.--For purposes of this subsection, the 
     terms ``home service provider'', ``mobile telecommunications 
     service'', and ``place of primary use'' have the same 
     meanings as in section 124 of title 4, United States Code.
       (e) Multiple Locations.--
       (1) In general.--If a digital good or a digital service is 
     sold to a customer and available for use by the customer in 
     multiple locations simultaneously, the seller may determine 
     the customer tax addresses using a reasonable and consistent 
     method based on the addresses of use as provided by the 
     customer and determined in agreement with the customer at the 
     time of sale.
       (2) Direct customer payment.--
       (A) Establishment of direct payment procedures.--Each State 
     and local jurisdiction shall provide reasonable procedures 
     that permit the direct payment by a qualified customer, as 
     determined under procedures established by the State or local 
     jurisdiction, of taxes that are on the sale of digital goods 
     and digital services to multiple locations of the customer 
     and that would, absent such procedures, be required or 
     permitted by law to be collected from the customer by the 
     seller.
       (B) Effect of customer compliance with direct payment 
     procedures.--When a qualified customer elects to pay tax 
     directly under the procedures established under subparagraph 
     (A), the seller shall--
       (i) have no obligation to obtain the multiple customer tax 
     addresses under subsection (a); and
       (ii) not be liable for such tax, provided the seller 
     follows the State and local procedures and maintains 
     appropriate documentation in its books and records.

     SEC. 205. TREATMENT OF BUNDLED TRANSACTIONS AND DIGITAL 
                   CODES.

       (a) Bundled Transaction.--If a charge for a distinct and 
     identifiable digital good or a digital service is aggregated 
     with and not separately stated from one or more charges for 
     other distinct and identifiable goods or services, which may 
     include other digital goods or digital services, and any part 
     of the aggregation is subject to taxation, then the entire 
     aggregation may be subject to taxation, except to the extent 
     that the seller can identify, by reasonable and verifiable 
     standards, one or more charges for the nontaxable goods or 
     services from its books and records kept in the ordinary 
     course of business.
       (b) Digital Code.--The tax treatment of the sale of a 
     digital code shall be the same as the tax treatment of the 
     sale of the digital good or digital service to which the 
     digital code relates.
       (c) Rule of Construction.--The sale of a digital code shall 
     be considered the sale transaction for purposes of this 
     title.

     SEC. 206. NO INFERENCE.

       (a) Customer Liability.--Subject to the prohibition 
     provided in section 202, nothing in this title modifies, 
     impairs, supersedes, or authorizes the modification, 
     impairment, or supersession of any law allowing a State or 
     local jurisdiction to impose tax on and collect tax directly 
     from a customer based upon use of a digital good or digital 
     service in such State.
       (b) Non-tax Matters.--This title shall not be construed to 
     apply in, or to affect, any non-tax regulatory matter or 
     other context.
       (c) State Tax Matters.--The definitions contained in this 
     title are intended to be

[[Page 5912]]

     used with respect to interpreting this title. Nothing in this 
     title shall prohibit a State or local jurisdiction from 
     adopting different nomenclature to enforce the provisions set 
     forth in this title.

     SEC. 207. DEFINITIONS.

       In this title, the following definitions shall apply:
       (1) Customer.--The term ``customer'' means a person that 
     purchases a digital good, digital service, or digital code.
       (2) Customer tax address.--
       (A) In general.--The term ``customer tax address'' means--
       (i) with respect to the sale of a digital good or digital 
     service that is received by the customer at a business 
     location of the seller, such business location;
       (ii) if clause (i) does not apply and the primary use 
     location of the digital good or digital service is known by 
     the seller, such location;
       (iii) if neither clause (i) nor clause (ii) applies, and if 
     the location where the digital good or digital service is 
     received by the customer, or by a donee of the customer that 
     is identified by such customer, is known to the seller and 
     maintained in the ordinary course of the seller's business, 
     such location;
       (iv) if none of clauses (i) through (iii) applies, the 
     location indicated by an address for the customer that is 
     available from the business records of the seller that are 
     maintained in the ordinary course of the seller's business, 
     when use of the address does not constitute bad faith;
       (v) if none of clauses (i) through (iv) applies, the 
     location indicated by an address for the customer obtained 
     during the consummation of the sale, including the address of 
     a customer's payment instrument, when use of this address 
     does not constitute bad faith; or
       (vi) if none of clauses (i) through (v) applies, including 
     the circumstance in which the seller is without sufficient 
     information to apply such paragraphs, the location from which 
     the digital good was first available for transmission by the 
     seller (disregarding for these purposes any location that 
     merely provides for the digital transfer of the product 
     sold), or from which the digital service was provided by the 
     seller.
       (B) Exclusion.--For purposes of this paragraph, the term 
     ``location'' does not include the location of a server, 
     machine, or device, including an intermediary server, that is 
     used simply for routing or storage.
       (3) Delivered or transferred electronically; provided 
     electronically.--The term ``delivered or transferred 
     electronically'' means the delivery or transfer by means 
     other than tangible storage media, and the term ``provided 
     electronically'' means the provision remotely via electronic 
     means.
       (4) Digital code.--The term ``digital code'' means a code 
     that conveys only the right to obtain a digital good or 
     digital service without making further payment.
       (5) Digital good.--The term ``digital good'' means any 
     software or other good that is delivered or transferred 
     electronically, including sounds, images, data, facts, or 
     combinations thereof, maintained in digital format, where 
     such good is the true object of the transaction, rather than 
     the activity or service performed to create such good, and 
     includes, as an incidental component, charges for the 
     delivery or transfer of the digital good.
       (6) Digital service.--
       (A) In general.--The term ``digital service'' means any 
     service that is provided electronically, including the 
     provision of remote access to or use of a digital good, and 
     includes, as an incidental component, charges for the 
     electronic provision of the digital service to the customer.
       (B) Exceptions.--The term ``digital service'' does not 
     include a service that is predominantly attributable to the 
     direct, contemporaneous expenditure of live human effort, 
     skill, or expertise, a telecommunications service, an 
     ancillary service, Internet access service, audio or video 
     programming service, or a hotel intermediary service.
       (C) Clarifying definitions.--For purposes of subparagraph 
     (B)--
       (i) the term ``ancillary service'' means a service that is 
     associated with or incidental to the provision of 
     telecommunications services, including, but not limited to, 
     detailed telecommunications billing, directory assistance, 
     vertical service, and voice mail services;
       (ii) the term ``audio or video programming service''--

       (I) means programming provided by, or generally considered 
     comparable to programming provided by, a radio or television 
     broadcast station; and
       (II) does not include interactive on-demand services, as 
     defined in paragraph (12) of section 602 of the 
     Communications Act of 1934 (47 U.S.C. 522(12)), pay-per-view 
     services, or services generally considered comparable to such 
     services regardless of the technology used to provide such 
     services;

       (iii) the term ``hotel intermediary service''--

       (I) means a service provided by a person that facilitates 
     the sale, use, or possession of a hotel room or other 
     transient accommodation to the general public; and
       (II) does not include the purchase of a digital service by 
     a person who provides a hotel intermediary service or by a 
     person who owns, operates, or manages hotel rooms or other 
     transient accommodations;

       (iv) the term ``Internet access service'' means a service 
     that enables users to connect to the Internet, as defined in 
     the Internet Tax Freedom Act (47 U.S.C. 151 note), to access 
     content, information, or other services offered over the 
     Internet; and
       (v) the term ``telecommunications service''--

       (I) means the electronic transmission, conveyance, or 
     routing of voice, data, audio, video, or any other 
     information or signals to a point, or between or among 
     points;
       (II) includes such transmission, conveyance, or routing in 
     which computer processing applications are used to act on the 
     form, code, or protocol of the content for purposes of 
     transmission, conveyance, or routing, without regard to 
     whether such service is referred to as voice over Internet 
     protocol service; and
       (III) does not include data processing and information 
     services that allow data to be generated, acquired, stored, 
     processed, or retrieved and delivered by an electronic 
     transmission to a purchaser where such purchaser's primary 
     purpose for the underlying transaction is the processed data 
     or information.

       (7) Discriminatory tax.--The term ``discriminatory tax'' 
     means any tax imposed by a State or local jurisdiction on 
     digital goods or digital services that--
       (A) is not generally imposed and legally collectible by 
     such State or local jurisdiction on transactions involving 
     similar property, goods, or services accomplished through 
     other means;
       (B) is not generally imposed and legally collectible at the 
     same or higher rate by such State or local jurisdiction on 
     transactions involving similar property, goods, or services 
     accomplished through other means;
       (C) imposes an obligation to collect or pay the tax on a 
     person, other than the seller, than the State or local 
     jurisdiction would impose in the case of transactions 
     involving similar property, goods, or services accomplished 
     through other means;
       (D) establishes a classification of digital services or 
     digital goods providers for purposes of establishing a higher 
     tax rate to be imposed on such providers than the tax rate 
     generally applied to providers of similar property, goods, or 
     services accomplished through other means; or
       (E) does not provide a resale and component part exemption 
     for the purchase of digital goods or digital services in a 
     manner consistent with the State's resale and component part 
     exemption applicable to the purchase of similar property, 
     goods, or services accomplished through other means.
       (8) Multiple tax.--
       (A) In general.--The term ``multiple tax'' means any tax 
     that is imposed by one State, one or more of that State's 
     local jurisdictions, or both on the same or essentially the 
     same digital goods and digital services that is also subject 
     to tax imposed by another State, one or more local 
     jurisdictions in such other State (whether or not at the same 
     rate or on the same basis), or both, without a credit for 
     taxes paid in other jurisdictions.
       (B) Exception.--The term ``multiple tax'' shall not include 
     a tax imposed by a State and one or more political 
     subdivisions thereof on the same digital goods and digital 
     services or a tax on persons engaged in selling digital goods 
     and digital services which also may have been subject to a 
     sales or use tax thereon.
       (9) Primary use location.--
       (A) In general.--The term ``primary use location'' means a 
     street address representative of where the customer's use of 
     a digital good or digital service will primarily occur, which 
     shall be the residential street address or a business street 
     address of the actual end user of the digital good or digital 
     service, including, if applicable, the address of a donee of 
     the customer that is designated by the customer.
       (B) Customers that are not individuals.--For the purpose of 
     subparagraph (A), if the customer is not an individual, the 
     primary use location is determined by the location of the 
     customer's employees or equipment (machine or device) that 
     make use of the digital good or digital service, but does not 
     include the location of a person who uses the digital good or 
     digital service as the purchaser of a separate good or 
     service from the customer.
       (10) Sale and purchase.--The terms ``sale'' and 
     ``purchase'', and all variations thereof, shall include the 
     provision, lease, rent, license, and corresponding variations 
     thereof.
       (11) Seller.--
       (A) In general.--The term ``seller'' means a person making 
     sales of digital goods or digital services.
       (B) Exceptions.--A person that provides billing service or 
     electronic delivery or transport service on behalf of another 
     unrelated or unaffiliated person, with respect to the other 
     person's sale of a digital good or digital service, shall not 
     be treated as a seller of that digital good or digital 
     service.
       (C) Rule of construction.--Nothing in this paragraph shall 
     preclude the person providing the billing service or 
     electronic delivery or transport service from entering into a 
     contract with the seller to assume the tax

[[Page 5913]]

     collection and remittance responsibilities of the seller.
       (12) Separate and discrete transaction.--The term 
     ``separate and discrete transaction'' means a sale of a 
     digital good, digital code, or a digital service sold in a 
     single transaction which does not involve any additional 
     charges or continued payment in order to maintain possession 
     of the digital good or access to the digital service.
       (13) State or local jurisdiction.--The term ``State or 
     local jurisdiction'' means any of the several States, the 
     District of Columbia, any territory or possession of the 
     United States, a political subdivision of any State, 
     territory, or possession, or any governmental entity or 
     person acting on behalf of such State, territory, possession, 
     or subdivision and with the authority to assess, impose, 
     levy, or collect taxes.
       (14) Tax.--
       (A) In general.--The term ``tax'' means any charge imposed 
     by any State or local jurisdiction for the purpose of 
     generating revenues for governmental purposes, including any 
     tax, charge, or fee levied as a fixed charge or measured by 
     gross amounts charged, regardless of whether such tax, 
     charge, or fee is imposed on the seller or the customer and 
     regardless of the terminology used to describe the tax, 
     charge, or fee.
       (B) Exclusions.--The term ``tax'' does not include an ad 
     valorem tax, a tax on or measured by capital, a tax on or 
     measured by net income, apportioned gross income, apportioned 
     revenue, apportioned taxable margin, or apportioned gross 
     receipts, or, a State or local jurisdiction business and 
     occupation tax imposed on a broad range of business activity 
     in a State that enacted a State tax on gross receipts after 
     January 1, 1932, and before January 1, 1936.

     SEC. 208. EFFECTIVE DATE; APPLICATION.

       (a) General Rule.--This title shall take effect 60 days 
     after the date of enactment of this title.
       (b) Exceptions.--A State or Local jurisdiction shall have 2 
     years from the date of enactment of this title to modify any 
     State or local tax statue enacted prior to date of enactment 
     of this title to conform to the provisions set forth in 
     sections 204 and 205 of this title.
       (c) Application to Liabilities and Pending Cases.--Nothing 
     in this title shall affect liability for taxes accrued and 
     enforced before the effective date of this title, or affect 
     ongoing litigation relating to such taxes.

     SEC. 209. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW.

       Not later than 3 years after the date of the enactment of 
     this title, the Comptroller General of the United States 
     shall carry out, and submit to Congress a report on the 
     results of, a study that identifies--
       (1) which specific statutes and regulations of each State 
     are invalidated as a result of this title; and
       (2) the amount of revenue lost (if any) by such State (and 
     local government of such State) by the effect of this title 
     on each such statute and each such regulation so affected.

     SEC. 210. SAVINGS PROVISION.

       If any provision or part of this title is held to be 
     invalid or unenforceable by a court of competent jurisdiction 
     for any reason, such holding shall not affect the validity or 
     enforceability of any other provision or part of this title 
     unless such holding substantially limits or impairs the 
     essential elements of this title, in which case this title 
     shall be deemed invalid and of no legal effect as of the date 
     that the judgment on such holding is final and no longer 
     subject to appeal.
                                 ______
                                 
  SA 765. Mr. COATS submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. __. TERMINATION OF AUTHORITY.

       No State shall be authorized to require sellers to collect 
     and remit sales and use taxes with respect to remote sales 
     that occur after December 31, 2018.
                                 ______
                                 
  SA 766. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SECTION 7. PROHIBITING USE OF PRESIDENTIAL ELECTION CAMPAIGN 
                   FUNDS FOR PARTY CONVENTIONS.

       (a) In General.--Chapter 95 of the Internal Revenue Code of 
     1986 is amended by striking section 9008.
       (b) Clerical Amendment.--The table of sections of chapter 
     95 of such Code is amended by striking the item relating to 
     section 9008.
       (c) Conforming Amendments.--
       (1) Availability of payments to candidates.--The third 
     sentence of section 9006(c) of the Internal Revenue Code of 
     1986 is amended by striking ``, section 9008(b)(3),''.
       (2) Reports by federal election commission.--Section 
     9009(a) of such Code is amended--
       (A) by adding ``and'' at the end of paragraph (2);
       (B) by striking the semicolon at the end of paragraph (3) 
     and inserting a period; and
       (C) by striking paragraphs (4), (5), and (6).
       (3) Penalties.--Section 9012 of such Code is amended--
       (A) in subsection (a)(1), by striking the second sentence; 
     and
       (B) in subsection (c), by striking paragraph (2) and 
     redesignating paragraph (3) as paragraph (2).
       (4) Availability of payments from presidential primary 
     matching payment account.--The second sentence of section 
     9037(a) of such Code is amended by striking ``and for 
     payments under section 9008(b)(3)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to elections occurring after 
     December 31, 2012.
                                 ______
                                 
  SA 767. Mr. COBURN submitted an amendment intended to be proposed by 
him to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. PREVENTING THE CREATION OF DUPLICATIVE AND 
                   OVERLAPPING FEDERAL PROGRAMS.

       (a) Reported Legislation.--Paragraph 11 of rule XXVI of the 
     Standing Rules of the Senate is amended--
       (1) in subparagraph (c), by striking ``and (b)'' and 
     inserting ``(b), and (c)'';
       (2) by redesignating subparagraph (c) and subparagraph (d); 
     and
       (3) by inserting after subparagraph (b) the following:
       ``(c) The report accompanying each bill or joint resolution 
     of a public character reported by any committee (including 
     the Committee on Appropriations and the Committee on the 
     Budget) shall contain--
       ``(1) an analysis by the Congressional Research Service to 
     determine if the bill or joint resolution creates any new 
     Federal program, office, or initiative that would duplicate 
     or overlap any existing Federal program, office, or 
     initiative with similar mission, purpose, goals, or 
     activities along with a listing of all of the overlapping or 
     duplicative Federal program or programs, office or offices, 
     or initiative or initiatives; and
       ``(2) an explanation provided by the committee as to why 
     the creation of each new program, office, or initiative is 
     necessary if a similar program or programs, office or 
     offices, or initiative or initiatives already exist.''.
       (b) Consideration of Legislation.--Rule XVII of the 
     Standing Rules of the Senate is amended by inserting at the 
     end thereof the following:
       ``6. (a) It shall not be in order in the Senate to proceed 
     to any bill or joint resolution unless the committee of 
     jurisdiction has prepared and posted on the committee website 
     an overlapping and duplicative programs analysis and 
     explanation for the bill or joint resolution as described in 
     subparagraph (b) prior to proceeding.
       ``(b) The analysis and explanation required by this 
     subparagraph shall contain--
       ``(1) an analysis by the Congressional Research Service to 
     determine if the bill or joint resolution creates any new 
     Federal program, office, or initiative that would duplicate 
     or overlap any existing Federal program, office, or 
     initiative with similar mission, purpose, goals, or 
     activities along with a listing of all of the overlapping or 
     duplicative Federal program or programs, office or offices, 
     or initiative or initiatives; and
       ``(2) an explanation provided by the committee as to why 
     the creation of each new program, office, or initiative is 
     necessary if a similar program or programs, office or 
     offices, or initiative or initiatives already exist.
       ``(c) This paragraph may be waived by joint agreement of 
     the Majority Leader and the Minority Leader of the Senate 
     upon their certification that such waiver is necessary as a 
     result of--
       ``(1) a significant disruption to Senate facilities or to 
     the availability of the Internet; or
       ``(2) an emergency as determined by the leaders.''.
                                 ______
                                 
  SA 768. Mr. LEE (for himself and Ms. Ayotte) submitted an amendment 
intended to be proposed by him to the bill S. 743, to restore States' 
sovereign rights to enforce State and local sales and use tax laws, and 
for other purposes; which was ordered to lie on the table; as follows:

       On page 7, between lines 8 and 9, insert the following:
       (d) Requirement to Enact Remote Seller Liability Defense 
     Laws.--
       (1) In general.--No State shall be authorized to require 
     sellers to collect and remit sales and use taxes with respect 
     to remote sales sourced to that State under subsection (a) or 
     (b) unless such State has enacted a law which provides remote 
     sellers protection, through an affirmative defense to an 
     action

[[Page 5914]]

     brought by the State or any locality within the State, from 
     liability with respect to sales and use taxes required to be 
     collected and remitted to the State under the authority 
     granted by this Act.
       (2) Exception.--A State or locality may overcome the 
     affirmative defense described in paragraph (1) only if it 
     carries its burden of establishing that--
       (A) it has directly notified the remote seller of the 
     obligation to collect and remit sales and use taxes and such 
     remote seller has received such notification;
       (B) it directly provided software from a certified software 
     provider and appropriate training on using such software; and
       (C) the remote seller has failed to use the software 
     provided by the State.
                                 ______
                                 
  SA 769. Mr. LEE submitted an amendment intended to be proposed by him 
to the bill S. 743, to restore States' sovereign rights to enforce 
State and local sales and use tax laws, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. _. PROTECTING ONLINE SALES INTERMEDIARIES FROM ACTIONS 
                   IN CONNECTION WITH CERTAIN VIOLATIONS OF 
                   PRIVACY.

       (a) In General.--Online sales intermediaries shall not be 
     subject to--
       (1) criminal or civil actions by a State or locality in 
     connection with the refusal to transfer information relating 
     to sales records in connection with the enforcement of sales 
     and use taxes on remote sellers who do not have a legal nexus 
     to the State or locality, except in cases where such action 
     relates to a court order, a warrant, or compliance with an 
     ongoing criminal investigation relating to an individual 
     case; and
       (2) actions by remote sellers or customers relating to the 
     transfer of any such records covered by an exception to 
     paragraph (1).
       (b) No Inference.--Nothing in this Act shall be construed 
     as authorizing States or localities to impose record keeping 
     requirements on online sales intermediaries or remote sellers 
     who have no nexus to the State or locality.
                                 ______
                                 
  SA 770. Mr. BARRASSO submitted an amendment intended to be proposed 
by him to the bill S. 743, to restore States' sovereign rights to 
enforce State and local sales and use tax laws, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end, add the following:

     SEC. 7. SENSE OF THE SENATE REGARDING RETIREMENT SAVINGS.

       (a) Findings.--Congress makes the following findings:
       (1) The Social Security Board of Trustees projects that the 
     combined Old-Age and Survivors Insurance (OASI) and the 
     Disability Insurance (DI) trust funds will be exhausted by 
     2033.
       (2) The Social Security Board of Trustees also projects 
     that after the OASI and DI trust funds are exhausted, 
     incoming receipts will only be able to cover around 75 
     percent of the scheduled annual benefits in 2033.
       (3) Employer-based retirement savings, personal savings, 
     and Social Security can combine to provide Americans with 
     meaningful income replacement upon retirement.
       (4) Defined contribution plans have a substantial impact on 
     interstate commerce and are affected with a national 
     interest.
       (5) 67,000,000 participants are currently covered by 
     approximately 670,000 private sector-defined contribution 
     plans.
       (6) The President's budget proposal for fiscal year 2014 
     seeks to ``limit an individual's total balance across tax-
     preferred accounts to an amount sufficient to finance an 
     annuity of not more than $205,000 per year in retirement, or 
     about $3,000,000 for someone retiring in 2013.''.
       (7) The President's proposal targets private sector-defined 
     contribution plans while providing no cap on government-
     defined benefit and pension plans.
       (8) Savings in traditional retirement accounts are invested 
     and grow tax free, but the money is fully taxed during the 
     withdrawal phase.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Government of the United States--
       (1) should not endeavor to define reasonable levels of 
     retirement savings for individuals and their families;
       (2) should not limit the balances of traditional IRA, Roth 
     IRA, 401(k), and defined contribution plans; and
       (3) should encourage individuals to responsibly save and 
     invest for their retirement.

                          ____________________