Internet Tax Freedom Act Amendments Act of 2007

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The Internet Tax Freedom Act Amendments Act of 2007 (H.R. 3678) extended the moratorium on state and local taxes on internet access first established by the Internet Tax Freedom Act of 1998 for an additional seven years.

Contents

Background

Summary (how summaries work)
The 1998 Internet Tax Freedom Act was authored by Rep. Chris Cox (D-Calif.) and Sen. Ron Wyden (D-Ore.), and signed into law on October 21, 1998 by President Bill Clinton in an effort to promote and preserve the commercial, educational, and informational potential of the Internet. This law bars federal, state and local governments from taxing Internet access and from imposing discriminatory Internet-only taxes such as bit taxes, bandwidth taxes, and email taxes. The law also bars multiple taxes on electronic commerce.[1]
Main article: U.S. internet tax legislation#Internet Tax Freedom Act of 1998


Summary


According to the Congressional Research Service, the bill:

  • Amends the Internet Tax Freedom Act to extend until November 1, 2014, the moratorium on state and local taxation of Internet access and electronic commerce (moratorium) and the exemption from such moratorium for states with previously enacted Internet tax laws (grandfathering provisions).[2]
  • Redefines, effective November 1, 2003, "Internet access" to prevent certain states from claiming an expanded exemption under the Internet Tax Nondiscrimination Act from the moratorium. Delays the application of such redefinition until June 30, 2008, for a state or local tax on Internet access that is: (1) generally imposed and actually enforced on telecommunication services; or (2) the subject of litigation instituted in a state court prior to July 1, 2007. [2]
  • Expands the term "Internet access" to include related communication services (e.g., emails and instant messaging). Redefines "telecommunications" to include unregulated non-utility telecommunications (e.g., cable services).[2]
  • Provides for a specific exception to the moratorium for certain state business taxes enacted between June 20, 2005, and before November 1, 2007, that do not discriminate against providers of communication services, Internet access, or telecommunications.[2]
  • Repeals the exception from the moratorium for taxing Voice over Internet Protocol (VoIP). [2]
  • Renders inapplicable the grandfather provisions of the Internet Tax Freedom Act for states that repealed or nullified their tax laws on Internet access more than 24 months prior to the enactment of this Act. [2]
  • Makes the amendments made by this Act effective November 1, 2007.[2]

Bill passage

The bill initially passed the House on October 16, 2007 by a vote of 405-2.

It was then amended in the Senate and passed by unanimous consent on October 25, 2007.[3]

The House then approved the Senate's amendment on October 30, 2007 by a margin of 402-0.


Same for all scorecards:

Scored vote

Scorecard: Information Technology Industry Council 2007-2008 House Scorecard

Org. position: Aye

Description:

"Legislation to amend the Internet Tax Freedom Act to extend the moratorium on certain taxes relating to the Internet and to electronic commerce."

(Original scorecard available at: http://www.itic.org/clientuploads/scorecards/13307_ITI_VoteGuide_FINAL.pdf)

Scored vote

Scorecard: U.S. Chamber of Commerce 2007 House Scorecard

Org. position: Aye

Description:

"With the support of the Chamber, the House passed H.R. 3678, the Internet Tax Freedom Act Amendments Act of 2007, 402-0. The legislation provided for the extension of the Internet tax moratorium for an additional seven years, through November 1, 2014. Every day, millions of Americans make countless transactions online, doing everything from buying products to managing their bank accounts. Extension of the Internet tax moratorium prevents consumers from unnecessary and burdensome taxes on Internet access."

(Original scorecard available at: http://www.uschamber.com/issues/legislators/07htv_house.htm)

President Bush signed the bill into law on October 31, 2007.[3]

Articles and resources

See also

References

  1. "Internet Tax Legislation: Distinguishing Issues", Congressional Research Service, January 11, 2001.
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "Summary as of 10/31/2007--Public Law", Congressional Research Service.
  3. 3.0 3.1 OpenCongress' info page on H.R. 3678.

External resources

External articles

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