[Congressional Record (Bound Edition), Volume 159 (2013), Part 4]
[Senate]
[Pages 6062-6069]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 771. 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--
       (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 the first calendar year beginning after such 
     date of enactment.
                                 ______
                                 
  SA 772. Mr. PORTMAN 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 10, line 2, insert ``Such term shall not include 
     any sale made through the mail'' after ``Act.''.
                                 ______
                                 
  SA 773. Mr. SANDERS submitted an amendment intended to be proposed to 
amendment SA 756 submitted by Mr. Paul and intended to be proposed 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:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SEC. __. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-
                   SKIPPING TRANSFER TAXES.

       (a) Modifications to Estate Tax.--
       (1) Exclusion amount.--Paragraph (3) of section 2010(c) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(3) Basic exclusion amount.--For purposes of this 
     section, the basic exclusion amount is $3,500,000.''.
       (2) Maximum estate tax rate.--The table in subsection (c) 
     of section 2001 of such Code is amended by striking ``Over 
     $1,000,000'' and all that follows and inserting the 
     following:
  
$345,800, plus 41 percent of the excess of such amount over $1,000,000.
$448,300, plus 43 percent of the excess of such amount over $1,250,000.
$555,800, plus 45 percent of the excess of such amount over ...........
  $1,500,000.''.
       (b) Modification to Gift Tax Exclusion Amount.--Paragraph 
     (1) of section 2505(a) of the Internal Revenue Code of 1986 
     is amended to read as follows:
       ``(1) the applicable credit amount in effect under section 
     2010(c) for such calendar year (determined as if the basic 
     exclusion amount in section 2010(c)(2)(A) were $1,000,000), 
     reduced by''''.
       (c) Modifications of Estate and Gift Taxes to Reflect 
     Differences in Credit Resulting From Different Exclusion 
     Amounts.--
       (1) Estate tax adjustment.--Section 2001 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(h) Adjustment to Reflect Changes in Exclusion Amount.--
       ``(1) In general.--If, with respect to any gift to which 
     subsection (b)(2) applies, the applicable exclusion amount in 
     effect at the time of the decedent's death is less than such 
     amount in effect at the time such gift is made by the 
     decedent, the amount of tax computed under subsection (b) 
     shall be reduced by the amount of tax which would

[[Page 6063]]

     have been payable under chapter 12 at the time of the gift if 
     the applicable exclusion amount in effect at such time had 
     been the applicable exclusion amount in effect at the time of 
     the decedent's death and the modifications described in 
     subsection (g) had been applicable at the time of such gifts.
       ``(2) Limitation.--The aggregate amount of gifts made in 
     any calendar year to which the reduction under paragraph (1) 
     applies shall not exceed the excess of--
       ``(A) the applicable exclusion amount in effect for such 
     calendar year, over
       ``(B) the applicable exclusion amount in effect at the time 
     of the decedent's death.
       ``(3) Applicable exclusion amount.--The term `applicable 
     exclusion amount' means, with respect to any period, the 
     amount determined under section 2010(c) for such period, 
     except that in the case of any period for which such amount 
     includes the deceased spousal unused exclusion amount (as 
     defined in section 2010(c)(4)), such term shall mean the 
     basic exclusion amount (as defined under section 2010(c)(3), 
     as in effect for such period).''.
       (2) Gift tax adjustment.--Section 2502 of such Code is 
     amended by adding at the end the following new subsection:
       ``(d) Adjustment to Reflect Changes in Exclusion Amount.--
       ``(1) In general.--If the taxpayer made a taxable gift in 
     an applicable preceding calendar period, the amount of tax 
     computed under subsection (a) shall be reduced by the amount 
     of tax which would have been payable under chapter 12 for 
     such applicable preceding calendar period if the applicable 
     exclusion amount in effect for such preceding calendar period 
     had been the applicable exclusion amount in effect for the 
     calendar year for which the tax is being computed and the 
     modifications described in subsection (g) had been applicable 
     for such preceding calendar period.
       ``(2) Limitation.--The aggregate amount of gifts made in 
     any applicable preceding calendar period to which the 
     reduction under paragraph (1) applies shall not exceed the 
     excess of--
       ``(A) the applicable exclusion amount for such preceding 
     calendar period, over
       ``(B) the applicable exclusion amount for the calendar year 
     for which the tax is being computed.
       ``(3) Applicable preceding calendar year period.--The term 
     `applicable preceding calendar year period' means any 
     preceding calendar year period in which the applicable 
     exclusion amount exceeded the applicable exclusion amount for 
     the calendar year for which the tax is being computed.
       ``(4) Applicable exclusion amount.--The term `applicable 
     exclusion amount' means, with respect to any period, the 
     amount determined under section 2010(c) for such period, 
     except that in the case of any period for which such amount 
     includes the deceased spousal unused exclusion amount (as 
     defined in section 2010(c)(4)), such term shall mean the 
     basic exclusion amount (as defined under section 2010(c)(3), 
     as in effect for such period).''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to estates of decedents dying, and generation-
     skipping transfers and gifts made, after December 31, 2013.
                                 ______
                                 
  SA 774. Mr. SANDERS submitted an amendment intended to be proposed to 
amendment SA 755 submitted by Mr. Paul and intended to be proposed 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:

       In lieu of the matter proposed to be inserted, insert the 
     following:

               TITLE _--CORPORATE TAX DODGING PREVENTION

     SEC. _01. SHORT TITLE.

       This title may be cited as the ``Corporate Tax Dodging 
     Prevention Act''.

     SEC. _02. DEFERRAL OF ACTIVE INCOME OF CONTROLLED FOREIGN 
                   CORPORATIONS.

       Section 952 of the Internal Revenue Code of 1986 is amended 
     by adding at the end the following new subsection:
       ``(d) Special Application of Subpart.--
       ``(1) In general.--For taxable years beginning after 
     December 31, 2013, notwithstanding any other provision of 
     this subpart, the term `subpart F income' means, in the case 
     of any controlled foreign corporation, the income of such 
     corporation derived from any foreign country.
       ``(2) Applicable rules.--Rules similar to the rules under 
     the last sentence of subsection (a) and subsection (d) shall 
     apply to this subsection.''.

     SEC. _03. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 
                   APPLICABLE TO LARGE INTEGRATED OIL COMPANIES 
                   WHICH ARE DUAL CAPACITY TAXPAYERS.

       (a) In General.--Section 901 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (n) as 
     subsection (o) and by inserting after subsection (m) the 
     following new subsection:
       ``(n) Special Rules Relating to Large Integrated Oil 
     Companies Which Are Dual Capacity Taxpayers.--
       ``(1) General rule.--Notwithstanding any other provision of 
     this chapter, any amount paid or accrued by a dual capacity 
     taxpayer which is a large integrated oil company to a foreign 
     country or possession of the United States for any period 
     shall not be considered a tax--
       ``(A) if, for such period, the foreign country or 
     possession does not impose a generally applicable income tax, 
     or
       ``(B) to the extent such amount exceeds the amount 
     (determined in accordance with regulations) which--
       ``(i) is paid by such dual capacity taxpayer pursuant to 
     the generally applicable income tax imposed by the country or 
     possession, or
       ``(ii) would be paid if the generally applicable income tax 
     imposed by the country or possession were applicable to such 
     dual capacity taxpayer.

     Nothing in this paragraph shall be construed to imply the 
     proper treatment of any such amount not in excess of the 
     amount determined under subparagraph (B).
       ``(2) Dual capacity taxpayer.--For purposes of this 
     subsection, the term `dual capacity taxpayer' means, with 
     respect to any foreign country or possession of the United 
     States, a person who--
       ``(A) is subject to a levy of such country or possession, 
     and
       ``(B) receives (or will receive) directly or indirectly a 
     specific economic benefit (as determined in accordance with 
     regulations) from such country or possession.
       ``(3) Generally applicable income tax.--For purposes of 
     this subsection--
       ``(A) In general.--The term `generally applicable income 
     tax' means an income tax (or a series of income taxes) which 
     is generally imposed under the laws of a foreign country or 
     possession on income derived from the conduct of a trade or 
     business within such country or possession.
       ``(B) Exceptions.--Such term shall not include a tax unless 
     it has substantial application, by its terms and in practice, 
     to--
       ``(i) persons who are not dual capacity taxpayers, and
       ``(ii) persons who are citizens or residents of the foreign 
     country or possession.
       ``(4) Large integrated oil company.--For purposes of this 
     subsection, the term `large integrated oil company' means, 
     with respect to any taxable year, an integrated oil company 
     (as defined in section 291(b)(4)) which--
       ``(A) had gross receipts in excess of $1,000,000,000 for 
     such taxable year, and
       ``(B) has an average daily worldwide production of crude 
     oil of at least 500,000 barrels for such taxable year.''.
       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to taxes paid or accrued in taxable years beginning 
     after the date of the enactment of this Act.
       (2) Contrary treaty obligations upheld.--The amendments 
     made by this section shall not apply to the extent contrary 
     to any treaty obligation of the United States.

     SEC. _04. REINSTITUTION OF PER COUNTRY FOREIGN TAX CREDIT.

       (a) In General.--Subsection (a) of section 904 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(a) Limitation.--The amount of the credit in respect of 
     the tax paid or accrued to any foreign country or possession 
     of the United States shall not exceed the same proportion of 
     the tax against which such credit is taken which the 
     taxpayer's taxable income from sources within such country or 
     possession (but not in excess of the taxpayer's entire 
     taxable income) bears to such taxpayer's entire taxable 
     income for the same taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2013.

     SEC. _05. TREATMENT OF FOREIGN CORPORATIONS MANAGED AND 
                   CONTROLLED IN THE UNITED STATES AS DOMESTIC 
                   CORPORATIONS.

       (a) In General.--Section 7701 of the Internal Revenue Code 
     of 1986 is amended by redesignating subsection (p) as 
     subsection (q) and by inserting after subsection (o) the 
     following new subsection:
       ``(p) Certain Corporations Managed and Controlled in the 
     United States Treated as Domestic for Income Tax.--
       ``(1) In general.--Notwithstanding subsection (a)(4), in 
     the case of a corporation described in paragraph (2) if--
       ``(A) the corporation would not otherwise be treated as a 
     domestic corporation for purposes of this title, but
       ``(B) the management and control of the corporation occurs, 
     directly or indirectly, primarily within the United States,

     then, solely for purposes of chapter 1 (and any other 
     provision of this title relating to chapter 1), the 
     corporation shall be treated as a domestic corporation.
       ``(2) Corporation described.--
       ``(A) In general.--A corporation is described in this 
     paragraph if--
       ``(i) the stock of such corporation is regularly traded on 
     an established securities market, or
       ``(ii) the aggregate gross assets of such corporation (or 
     any predecessor thereof), including assets under management 
     for investors, whether held directly or indirectly, at any

[[Page 6064]]

     time during the taxable year or any preceding taxable year is 
     $50,000,000 or more.
       ``(B) General exception.--A corporation shall not be 
     treated as described in this paragraph if--
       ``(i) such corporation was treated as a corporation 
     described in this paragraph in a preceding taxable year,
       ``(ii) such corporation--

       ``(I) is not regularly traded on an established securities 
     market, and
       ``(II) has, and is reasonably expected to continue to have, 
     aggregate gross assets (including assets under management for 
     investors, whether held directly or indirectly) of less than 
     $50,000,000, and

       ``(iii) the Secretary grants a waiver to such corporation 
     under this subparagraph.
       ``(C) Exception from gross assets test.--Subparagraph 
     (A)(ii) shall not apply to a corporation which is a 
     controlled foreign corporation (as defined in section 957) 
     and which is a member of an affiliated group (as defined 
     section 1504, but determined without regard to section 
     1504(b)(3)) the common parent of which--
       ``(i) is a domestic corporation (determined without regard 
     to this subsection), and
       ``(ii) has substantial assets (other than cash and cash 
     equivalents and other than stock of foreign subsidiaries) 
     held for use in the active conduct of a trade or business in 
     the United States.
       ``(3) Management and control.--
       ``(A) In general.--The Secretary shall prescribe 
     regulations for purposes of determining cases in which the 
     management and control of a corporation is to be treated as 
     occurring primarily within the United States.
       ``(B) Executive officers and senior management.--Such 
     regulations shall provide that--
       ``(i) the management and control of a corporation shall be 
     treated as occurring primarily within the United States if 
     substantially all of the executive officers and senior 
     management of the corporation who exercise day-to-day 
     responsibility for making decisions involving strategic, 
     financial, and operational policies of the corporation are 
     located primarily within the United States, and
       ``(ii) individuals who are not executive officers and 
     senior management of the corporation (including individuals 
     who are officers or employees of other corporations in the 
     same chain of corporations as the corporation) shall be 
     treated as executive officers and senior management if such 
     individuals exercise the day-to-day responsibilities of the 
     corporation described in clause (i).
       ``(C) Corporations primarily holding investment assets.--
     Such regulations shall also provide that the management and 
     control of a corporation shall be treated as occurring 
     primarily within the United States if--
       ``(i) the assets of such corporation (directly or 
     indirectly) consist primarily of as sets being managed on 
     behalf of investors, and
       ``(ii) decisions about how to invest the assets are made in 
     the United States.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning on or after the date 
     which is 2 years after the date of the enactment of this Act.
                                 ______
                                 
  SA 775. Mr. BROWN 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. __. LIMITATIONS ON STATE WITHHOLDING AND TAXATION OF 
                   EMPLOYEE INCOME.

       (a) In General.--No part of the wages or other remuneration 
     earned by an employee who performs employment duties in more 
     than one State shall be subject to income tax in any State 
     other than--
       (1) the State of the employee's residence; and
       (2) the State within which the employee is present and 
     performing employment duties for more than 30 days during the 
     calendar year in which the wages or other remuneration is 
     earned.
       (b) Wages or Other Remuneration.--Wages or other 
     remuneration earned in any calendar year shall not be subject 
     to State income tax withholding and reporting requirements 
     unless the employee is subject to income tax in such State 
     under subsection (a). Income tax withholding and reporting 
     requirements under subsection (a)(2) shall apply to wages or 
     other remuneration earned as of the commencement date of 
     employment duties in the State during the calendar year.
       (c) Operating Rules.--For purposes of determining penalties 
     related to an employer's State income tax withholding and 
     reporting requirements--
       (1) an employer may rely on an employee's annual 
     determination of the time expected to be spent by such 
     employee in the States in which the employee will perform 
     duties absent--
       (A) the employer's actual knowledge of fraud by the 
     employee in making the determination; or
       (B) collusion between the employer and the employee to 
     evade tax;
       (2) except as provided in paragraph (3), if records are 
     maintained by an employer in the regular course of business 
     that record the location of an employee, such records shall 
     not preclude an employer's ability to rely on an employee's 
     determination under paragraph (1); and
       (3) notwithstanding paragraph (2), if an employer, at its 
     sole discretion, maintains a time and attendance system that 
     tracks where the employee performs duties on a daily basis, 
     data from the time and attendance system shall be used 
     instead of the employee's determination under paragraph (1).
       (d) Definitions and Special Rules.--For purposes of this 
     section:
       (1) Day.--
       (A) Except as provided in subparagraph (B), an employee is 
     considered present and performing employment duties within a 
     State for a day if the employee performs more of the 
     employee's employment duties within such State than in any 
     other State during a day.
       (B) If an employee performs employment duties in a resident 
     State and in only one nonresident State during one day, such 
     employee shall be considered to have performed more of the 
     employee's employment duties in the nonresident State than in 
     the resident State for such day.
       (C) For purposes of this paragraph, the portion of the day 
     during which the employee is in transit shall not be 
     considered in determining the location of an employee's 
     performance of employment duties.
       (2) Employee.--The term ``employee'' has the same meaning 
     given to it by the State in which the employment duties are 
     performed, except that the term ``employee'' shall not 
     include a professional athlete, professional entertainer, or 
     certain public figures.
       (3) Professional athlete.--The term ``professional 
     athlete'' means a person who performs services in a 
     professional athletic event, provided that the wages or other 
     remuneration are paid to such person for performing services 
     in his or her capacity as a professional athlete.
       (4) Professional entertainer.--The term ``professional 
     entertainer'' means a person who performs services in the 
     professional performing arts for wages or other remuneration 
     on a per-event basis, provided that the wages or other 
     remuneration are paid to such person for performing services 
     in his or her capacity as a professional entertainer.
       (5) Certain public figures.--The term ``certain public 
     figures'' means persons of prominence who perform services 
     for wages or other remuneration on a per-event basis, 
     provided that the wages or other remuneration are paid to 
     such person for services provided at a discrete event, in the 
     nature of a speech, public appearance, or similar event.
       (6) Employer.--The term ``employer'' has the meaning given 
     such term in section 3401(d) of the Internal Revenue Code of 
     1986 (26 U.S.C. 3401(d)), unless such term is defined by the 
     State in which the employee's employment duties are 
     performed, in which case the State's definition shall 
     prevail.
       (7) State.--Notwithstanding section 4(8), the term 
     ``State'' means any of the several States.
       (8) Time and attendance system.--The term ``time and 
     attendance system'' means a system in which--
       (A) the employee is required on a contemporaneous basis to 
     record his work location for every day worked outside of the 
     State in which the employee's employment duties are primarily 
     performed; and
       (B) the system is designed to allow the employer to 
     allocate the employee's wages for income tax purposes among 
     all States in which the employee performs employment duties 
     for such employer.
       (9) Wages or other remuneration.--The term ``wages or other 
     remuneration'' may be limited by the State in which the 
     employment duties are performed.
       (e) Effective Date; Applicability.--
       (1) Effective date.--This section shall take effect on 
     January 1 of the 2d year that begins after the date of the 
     enactment of this Act.
       (2) Applicability.--This section shall not apply to any tax 
     obligation that accrues before the effective date of this 
     Act.
                                 ______
                                 
  SA 776. 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) Requirement for Remote Seller Compensation.--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 
     adopts and implements a requirement providing a remote seller 
     compensation for the collection and remittance of sales and 
     use taxes in an amount equal to any costs or expenses 
     incurred by the remote seller for the collection and 
     remittance of such taxes.
       (e) Requirement to Enact Remote Seller Liability Defense 
     Laws.--

[[Page 6065]]

       (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 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 777. 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) Requirement for Remote Seller Compensation.--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 
     adopts and implements a requirement providing a remote seller 
     compensation for the collection and remittance of sales and 
     use taxes in an amount equal to any costs or expenses 
     incurred by the remote seller for the collection and 
     remittance of such taxes.
                                 ______
                                 
  SA 778. 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 used with respect to interpreting 
     this title. Nothing in this title shall prohibit a State or

[[Page 6066]]

     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 collection and 
     remittance responsibilities of the seller.

[[Page 6067]]

       (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. 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 779. Mr. HOEVEN (for himself and Ms. Klobuchar) 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. PREVENTION OF INCREASES IN FLIGHT DELAYS AND 
                   CANCELLATIONS.

       (a) Short Title.--This section may be cited as the 
     ``Dependable Air Service Act of 2013''.
       (b) Prevention of Increases Required.--The Secretary of 
     Transportation shall ensure that flight delays and 
     cancellations do not result from furloughs of employees of 
     the Federal Aviation Administration implemented as a result 
     of any rescission or reduction in funding for fiscal year 
     2013 provided for under--
       (1) a sequestration order issued by the President pursuant 
     to section 251A(7)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901a(7)(A));
       (2) section 3002 or 3004 of the Consolidated and Further 
     Continuing Appropriations Act, 2013 (Public Law 113-6); or
       (3) section 251 or 251A of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 901 and 
     901a).
       (c) Funding.--In carrying out subsection (b), the Secretary 
     of Transportation may--
       (1) use amounts available for the operations of the Federal 
     Aviation Administration for fiscal year 2013 as of the day 
     before the date of the enactment of this Act; or
       (2) notwithstanding division G of the Consolidated and 
     Further Continuing Appropriations Act, 2013 (Public Law 113-
     6), or a sequestration order issued by the President pursuant 
     to section 251A(7)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901a(7)(A))--
       (A) increase the amount available for the operations of the 
     Federal Aviation Administration for fiscal year 2013 by an 
     amount the Secretary determines to be necessary to ensure 
     that flight delays and cancellations do not result from the 
     furloughs described in subsection (b); and
       (B) reduce amounts made available for other programs of the 
     Department of Transportation for fiscal year 2013 by an 
     amount equal to the amount by which funding for the 
     operations of the Federal Aviation Administration is 
     increased under subparagraph (A).
                                 ______
                                 
  SA 780. 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 5, strike lines 4 through 7 and insert the 
     following:
     paragraph (H);
       (iii) certification procedures for persons to be approved 
     as certified software providers; and
       (iv) remote sellers that collect and remit sales and use 
     taxes under this Act with compensation in an amount that is 
     equal to not less than--

       (I) 3 percent of the sales and use taxes collected and 
     remitted to such State during the 36-month period following 
     the date that the exercise of authority under this Act 
     commences; and
       (II) 2 percent of the sales and use taxes collected and 
     remitted to such State thereafter.

                                 ______
                                 
  SA 781. Mr. ALEXANDER 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 shall be equal to--
       (A) if the preceding calendar year is 2012, $1,500,000; and
       (B) if the preceding calendar year is 2013 or any year 
     thereafter, $1,000,000.
                                 ______
                                 
  SA 782. Mr. VITTER (for himself and Mr. Heller) 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. __. PARTICIPATION OF PRESIDENT, VICE PRESIDENT, MEMBERS 
                   OF CONGRESS, POLITICAL APPOINTEES, AND 
                   CONGRESSIONAL STAFF IN THE EXCHANGE.

       (a) In General.--Section 1312(d)(3)(D) of the Patient 
     Protection and Affordable Care Act (42 U.S.C. 18032(d)(3)(D)) 
     is amended to read as follows:
       ``(D) President, vice president, political appointees, 
     members of congress, and congressional staff in the 
     exchange.--
       ``(i) In general.--Notwithstanding chapter 89 of title 5, 
     United States Code, or any provision of this title the 
     President, the Vice President, each political appointee, each 
     Member of Congress, and each Congressional employee shall be 
     treated as a qualified individual entitled to the right under 
     this paragraph to enroll in a qualified health plan in the 
     individual market offered through an Exchange in the State in 
     which the individual resides.
       ``(ii) Political appointee.--In this subparagraph, the term 
     `political appointee' means any individual who--

       ``(I) is employed in a position described under sections 
     5312 through 5316 of title 5, United States Code, (relating 
     to the Executive Schedule);
       ``(II) is a limited term appointee, limited emergency 
     appointee, or noncareer appointee in the Senior Executive 
     Service, as defined under paragraphs (5), (6), and (7), 
     respectively, of section 3132(a) of title 5, United States 
     Code; or
       ``(III) is employed in a position in the executive branch 
     of the Government of a confidential or policy-determining 
     character under schedule C of subpart C of part 213 of title 
     5 of the Code of Federal Regulations.

       ``(iii) Congressional employee.--In this subparagraph, the 
     term `Congressional employee' means an employee whose pay is 
     disbursed by the Secretary of the Senate or the Chief 
     Administrative Officer of the House of Representatives.''.

[[Page 6068]]

       (b) Effective Date.--The amendment made by this section 
     shall take effect as if included in the Patient Protection 
     and Affordable Care Act.
                                 ______
                                 
  SA 783. 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 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.
                                 ______
                                 
  SA 784. 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 8, between lines 20 and 21, insert the following:
       (g) Limitation on Penalties.--
       (1) In general.--Notwithstanding any other provision of 
     law, in the case of a remote seller that is required to 
     collect and remit sales and use taxes to a State pursuant to 
     the authority granted under this Act, a State may only bring 
     an action against the remote seller pursuant to this Act for 
     failure to properly collect and remit such taxes when due and 
     for any interest due on such amounts.
                                 ______
                                 
  SA 785. 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 Costs Related to Audits.--
       (1) In general.--In the case of a remote seller that 
     collects and remits sales and use taxes to a State pursuant 
     to the authority granted under this Act, the State shall 
     fully reimburse the seller for any costs or expenses related 
     to any audit by such State regarding the collection and 
     remittance of such taxes (as determined pursuant to paragraph 
     (2)), provided that the seller has not been determined to 
     have knowingly violated the requirements under this Act.
       (2) Determination of reimbursement amount.--For purposes of 
     this subsection, the amount and method of reimbursement shall 
     be determined by the Secretary of the Treasury, pursuant to 
     such criteria as are determined appropriate by the Secretary.
                                 ______
                                 
  SA 786. 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) Audit Exception.--
       (1) In general.--For purposes of the authority granted 
     under subsections (a) and (b), a remote seller shall not be 
     subject to an audit by a State regarding collection or 
     remittance of sales and use taxes with respect to remote 
     sales that are sourced to such State if the seller has been 
     subject to an audit by any State pursuant to such authority 
     during the preceding 24 months.
       (2) Definition.--For purposes of paragraph (1), 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 787. 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. COMPLIANCE BY REMOTE SELLERS BASED OUTSIDE OF THE 
                   UNITED STATES.

       (a) In general.--Notwithstanding any other provision of 
     law, the provisions of this Act shall not take effect for any 
     non-sales tax state remote seller unless the Secretary of the 
     Treasury has certified that the United States has entered 
     into agreements with other nations that would require remote 
     sellers based outside of the United States to collect and 
     remit sales and use taxes with respect to remote sales 
     sourced to a State, provided that such agreements impose such 
     requirements on the predominant quantity of the cumulative 
     total of such remote sales by such remote sellers within the 
     United States.
                                 ______
                                 
  SA 788. Ms. COLLINS (for herself and Mr. Udall of Colorado) 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. AUTHORIZATION TO TRANSFER CERTAIN FUNDS TO PREVENT 
                   FURLOUGHS BY THE FEDERAL AVIATION 
                   ADMINISTRATION.

       (a) Short Title.--This section may be cited as the 
     ``Reducing Flight Delays Act of 2013''.
       (b) Authorization of Transfer.--Notwithstanding division G 
     of the Consolidated and Further Continuing Appropriations 
     Act, 2013 (Public Law 113-6), any other provision of law, or 
     a sequestration order issued or to be issued by the President 
     pursuant to section 251A(7)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 901a(7)(A)), 
     the Secretary of Transportation may transfer during fiscal 
     year 2013 an amount equal to the amount specified in 
     subsection (d) to the appropriations account providing for 
     the operations of the Federal Aviation Administration, for 
     any activity or activities funded by that account, from--
       (1) the amount made available for obligation in that fiscal 
     year as discretionary grants-in-aid for airports pursuant to 
     section 47117(f) of title 49, United States Code; or
       (2) any other program or account of the Federal Aviation 
     Administration.
       (c) Availability and Obligation of Transferred Amounts.--An 
     amount transferred under subsection (b)(1) shall--
       (1) be available immediately for obligation and expenditure 
     as directly appropriated budget authority; and
       (2) be deemed as obligated for grants-in-aid for airports 
     under part B of subtitle VII of title 49, United States Code, 
     for purposes of complying with the limitation on incurring 
     obligations during that fiscal year under the heading 
     ``Grants-in-Aid for Airports'' under title I of the 
     Transportation, Housing and Urban Development, and Related 
     Agencies Appropriations Act, 2012 (division C of Public Law 
     112-55; 125 Stat. 647), and made applicable to fiscal year 
     2013 by division F of the Consolidated and Further Continuing 
     Appropriations Act, 2013 (Public Law 113-6).
       (d) Amount Specified.--The amount specified in this 
     subsection is the amount, not to exceed $253,000,000, that 
     the Secretary of Transportation determines to be necessary--
       (1) to prevent during fiscal year 2013 furloughs of 
     employees of the Federal Aviation Administration whom the 
     Secretary determines are necessary for ensuring a safe and 
     efficient air transportation system; and
       (2) to continue during that fiscal year the operations of 
     air traffic control towers that were operational as of 
     January 1, 2013, under the contract tower program of the 
     Federal Aviation Administration.
                                 ______
                                 
  SA 789. Mr. WYDEN 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. EFFECTIVE DATE.

       This Act shall not take effect until the date on which the 
     United States International Trade Commission determines, and 
     reports to Congress, that the provisions of this Act will not 
     injure remote sellers located in the United States as a 
     result of the exclusion of remote sellers located outside of 
     the United States from taxation pursuant to this Act.
                                 ______
                                 
  SA 790. Mrs. McCASKILL (for herself and Ms. Collins) 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 appropriate place, insert the following:

     SEC. ___. PROHIBITION ON BONUSES AND AWARDS.

       (a) Definitions.--In this section--
       (1) the terms ``agency'' and ``employee'' have the meanings 
     given such terms in section 4501 of title 5, United States 
     Code;
       (2) the term ``bonus'' means--
       (A) an award under subchapter I of chapter 45 of title 5, 
     United States Code; and
       (B) an award under section 5384 of title 5, United States 
     Code; and
       (3) the term ``sequestration period'' means a period 
     beginning on the date on which a sequestration order is 
     issued under section 251

[[Page 6069]]

     or 251A of the Balanced Budget and Emergency Deficit Control 
     Act (2 U.S.C. 901 and 901a) and ending on the last day of the 
     fiscal year to which the sequestration order applies.
       (b) Prohibition.--Notwithstanding any other provision of 
     law, an agency may not award a bonus to an employee--
       (1) during a sequestration period; or
       (2) that relates to any period of service performed during 
     a fiscal year during which a sequestration order is issued 
     under section 251 or 251A of the Balanced Budget and 
     Emergency Deficit Control Act (2 U.S.C. 901 and 901a).
                                 ______
                                 
  SA 791. Mr. SANDERS 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. __. PROHIBITION ON ADMISSION TO THE UNITED STATES OF TAX 
                   EVADERS.

       Section 212(d)(3)(A) of the Immigration and Nationality Act 
     (8 U.S.C. 1182(d)(3)(A)) is amended--
       (1) in clause (i), by striking ``and clauses (i) and (ii) 
     of paragraph (3)(E)'' and inserting ``clauses (i) and (ii) of 
     paragraph (3)(E), and paragraph (10)(E)''; and
       (2) in clause (ii), by striking ``and clauses (i) and (ii) 
     of paragraph (3)(E)'' and inserting ``clauses (i) and (ii) of 
     paragraph (3)(E), and paragraph (10)(E)''.
                                 ______
                                 
  SA 792. Mr. COATS (for Mr. Portman (for himself, Mr. Coats, and Ms. 
Ayotte)) submitted an amendment intended to be proposed by Mr. Coats 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. __. REVENUE-NEUTRALITY LIMITATION.

       (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 has enacted into law a 
     reduction in taxes by an amount not less than the net revenue 
     collected and remitted to such State by reason of the 
     authority granted under such subsections, as determined on an 
     annual, biennial, or permanent basis.
       (b) Compliance.--
       (1) In general.--The Governor of each State which exercises 
     the authority granted under this Act shall certify in writing 
     compliance with subsection (a) no later than 18 months after 
     the State exercises the authority granted by this Act.
       (2) No judicial review.--The compliance of a State with 
     subsection (a) shall not be subject to judicial review.
       (c) Net Revenue.--For purposes of subsection (a), the term 
     ``net revenue'' means gross revenues reduced by the amount of 
     any costs incurred in the collection of taxes on remote sales 
     and related administrative costs.
                                 ______
                                 
  SA 793. Mr. HOEVEN 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. PREVENTION OF INCREASES IN FLIGHT DELAYS AND 
                   CANCELLATIONS; CONTINUED OPERATION OF CONTRACT 
                   TOWER PROGRAM.

       (a) Short Title.--This section may be cited as the 
     ``Dependable Air Service Act of 2013''.
       (b) Prevention of Increases Required.--The Secretary of 
     Transportation shall ensure that flight delays and 
     cancellations do not result from furloughs of employees of 
     the Federal Aviation Administration implemented as a result 
     of any rescission or reduction in funding for fiscal year 
     2013 provided for under--
       (1) a sequestration order issued by the President pursuant 
     to section 251A(7)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901a(7)(A));
       (2) section 3002 or 3004 of the Consolidated and Further 
     Continuing Appropriations Act, 2013 (Public Law 113-6); or
       (3) section 251 or 251A of the Balanced Budget and 
     Emergency Deficit Control Act of 1985 (2 U.S.C. 901 and 
     901a).
       (c) Funding for Preventing Furloughs.--In carrying out 
     subsection (b), the Secretary of Transportation may--
       (1) use amounts available for the operations of the Federal 
     Aviation Administration for fiscal year 2013 as of the day 
     before the date of the enactment of this Act; or
       (2) notwithstanding division G of the Consolidated and 
     Further Continuing Appropriations Act, 2013 (Public Law 113-
     6), or a sequestration order issued by the President pursuant 
     to section 251A(7)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 901a(7)(A))--
       (A) increase the amount available for the operations of the 
     Federal Aviation Administration for fiscal year 2013 by an 
     amount the Secretary determines to be necessary to ensure 
     that flight delays and cancellations do not result from the 
     furloughs described in subsection (b); and
       (B) reduce amounts made available for other programs of the 
     Department of Transportation for fiscal year 2013 by an 
     amount equal to the amount by which funding for the 
     operations of the Federal Aviation Administration is 
     increased under subparagraph (A).
       (d) Additional Amount for Contract Tower Program.--
       (1) In general.--There is appropriated to the Secretary of 
     Transportation $130,000,000 for fiscal year 2013 for the 
     contract tower program of the Federal Aviation 
     Administration.
       (2) Additional amount.--The amount appropriated pursuant to 
     paragraph (1) shall be in addition to amounts appropriated 
     for the Federal Aviation Administration under title I of the 
     Transportation, Housing and Urban Development, and Related 
     Agencies Appropriations Act, 2012 (division C of Public Law 
     112-55; 125 Stat. 641), as made available by section 
     1101(a)(7) of division F of the Consolidated and Further 
     Continuing Appropriations Act, 2013 (Public Law 113-6).
       (3) Offset.--Of amounts appropriated for fiscal years 
     before fiscal year 2013 that remain available for obligation 
     as of the date of the enactment of this Act and that are not 
     designated an emergency requirement pursuant to a concurrent 
     resolution on the budget or the Balanced Budget and Emergency 
     Deficit Control Act of 1985, the following amounts are 
     rescinded from the following accounts:
       (A) ``Department of Transportation, Federal Aviation 
     Administration, Facilities and Equipment'', $23,861,002.
       (B) ``Department of Transportation, Federal Aviation 
     Administration, Research, Engineering, and Development'', 
     $26,183,998.
                                 ______
                                 
  SA 794. Mr. COATS (for himself, Mr. Portman, 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:

       At the end, add the following:

     SEC. __. REVENUE-NEUTRALITY LIMITATION.

       (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 has enacted into law a 
     reduction in taxes by an amount not less than the net revenue 
     collected and remitted to such State by reason of the 
     authority granted under such subsections, as determined on an 
     annual, biennial, or permanent basis.
       (b) Compliance.--
       (1) In general.--The Governor of each State which exercises 
     the authority granted under this Act shall certify in writing 
     compliance with subsection (a) no later than 18 months after 
     the State exercises the authority granted by this Act.
       (2) No judicial review.--The compliance of a State with 
     subsection (a) shall not be subject to judicial review.
       (c) Net Revenue.--For purposes of subsection (a), the term 
     ``net revenue'' means gross revenues reduced by the amount of 
     any costs incurred in the collection of taxes on remote sales 
     and related administrative costs.
                                 ______
                                 
  SA 795. 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 8, between lines 20 and 21, insert the following:
       (g) Preventing Discrimination in Compensation for 
     Compliance Costs.--
       (1) In general.--In the case of a State that provides 
     reimbursement (other than through a State tax deduction for 
     ordinary and necessary expenses paid or incurred during the 
     taxable year in carrying on any trade or business) for 
     expenses related to collection and remittance of sales and 
     use taxes to sellers that are located within the State, such 
     State shall provide an equivalent rate and method of 
     reimbursement to any remote seller for expenses related to 
     the collection and remittance of sales and use taxes on 
     remote sales sourced to that State.
       (2) Administration.--The Secretary of the Treasury may 
     issue such regulations or guidance as may be necessary for 
     the administration of the requirements described in paragraph 
     (1).

                          ____________________