Internet Tax Freedom Act

Summary

Internet Tax Freedom Act - Amends the Communications Act of 1934 (the Act) to prohibit the Federal Communications Commission (FCC) or any State commission from having regulatory authority or jurisdiction with respect to charges paid by subscribers for Internet access or online services (IAOs). Preserves FCC authority and the State commission's authority to: (1) implement the Telecommunications Act of 1996 or the amendments made by such Act; and (2) regulate common carriers that offer IAOs in conjunction with the provision of any telephone toll, telephone exchange, or exchange access services as such terms are defined in title I of the Act. (Sec. 3) Exempts IAOs providers from Federal regulatory fees. Requires the National Telecommunications and Information Administration to determine whether any direct or indirect Federal regulatory fees, other than the fees identified under the Act, are imposed on IAOs providers, and if so, make recommendations to the Congress regarding whether such fees should be modified or eliminated. (Sec. 4) Requires the Secretary of Commerce, in consultation with appropriate congressional committees, to examine: (1) barriers imposed in foreign markets on U.S. providers of property, goods, services, or information engaged in electronic commerce and on U.S. providers of telecommunications services; (2) how the imposition of such barriers will affect U.S. consumers, the competitiveness of U.S. citizens providing property, goods, service, or information in foreign markets, and the growth and maturing of the Internet; and (3) what measures the Government should pursue to foster, promote, and develop electronic commerce in the United States and in foreign markets. Directs: (1) the Secretary to report to the President on the results of the examination; and (2) the President to review the report and submit to appropriate congressional committees such policy recommendations as the President deems necessary or expedient. (Sec. 5) Prohibits, for three years after enactment of this Act, any State or political subdivision from imposing, assessing, collecting, or attempting to collect specified taxes on Internet access and services, with an exception for taxes imposed and actually enforced under State law before March 1, 1998. Provides that: (1) such exception shall be enforceable only if a State enacts a law to expressly impose such tax within one year from the date of enactment; and (2) failure of a State to act does not affect liabilities for taxes accrued and enforced prior to March 1, 1998, nor does it affect ongoing litigation relating to such assessments. Provides that this moratorium shall not apply with respect to the provision of IAOs that are offered for sale as part of a package of services that includes services other than IAOs, unless the service provider separately states that portion of the billing that applies to such services on the user's bill. (Sec. 6) Establishes the Advisory Commission on Electronic Commerce to, among other things: (1) identify the taxes, fees, and charges imposed on electronic commerce within the United States that could impede the development of such commerce; and (2) propose both a uniform system of definitions of electronic commerce that may be subject to sales and use tax within each State, as well as a simplified system for such taxes. (Sec. 7) Directs the Commission, within two years of enactment, to transmit to the President and the Congress proposed legislation. Directs the President to then review such proposals and to submit to appropriate congressional committees such policy recommendations as the President deems necessary or expedient. (Sec. 8) Provides for the expedited congressional consideration of such legislative recommendations. (Sec. 9) Expresses the sense of the Congress that the President should seek bilateral and multilateral agreements through various international organizations to require that the provision of IAOs be free from undue and discriminatory regulation by foreign governments and that electronic commercial transactions between U.S. and foreign providers of property, goods, services, and information be free from undue and discriminatory regulation, international tariffs, and discriminatory taxation.

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Documents

7 official files

• Reported in House (text)

  Reported in House · EN · 25 June 1998

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• Reported in House (PDF)

  Reported in House · EN · 25 June 1998

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• Reported to House amended, Part II

  summary · EN · 19 June 1998

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• Reported to House amended, Part I

  summary · EN · 5 June 1998

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• Introduced in House (text)

  Introduced in House · EN · 12 May 1998

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• Introduced in House (PDF)

  Introduced in House · EN · 12 May 1998

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• Introduced in House

  summary · EN · 12 May 1998

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