Visit the ACM Legislative Action Center (www.alliancecm.org/ for More Information.

Email, Fax and Call your Senate Offices Today to Oppose S.150 and Support S.2084 as a Substitute Bill.

Despite the appearance that S.150 is simply an extension of the current moratorium, it contains new, vague language that could threaten franchise fees and PEG access. The language of S. 150 could deprive municipalities of billions of dollars in tax and fee revenue. According to the National League of Cities, S.150 is as a preemption of local taxing authority and as an unfunded mandate (as determined by the Congressional Budget Office).

We support substituting this bill with S. 2084 because it extends the federal ban on state and local taxation of Internet access in a manner that is technology neutral and fair to state and local governments. S.2084 defines the term "Internet access" in a manner that does not jeopardize local governments' existing taxing authority on telecommunications services. It secures local governments' ability to collect telecommunications taxes and franchise fees for a two-year period.

The Internet Tax Moratorium, originally intended to prevent the taxation of Internet transactions, expired on October 31, 2003, due the the lack of Congressional action. S. 150 is the result of the desire to extend and expand upon the existing moratorium. But, this legislation has been heavily influenced by cable and telecom industry lobbyists who have helped expand the definition of internet access. Now this legislation could exempt all telecommunications providers from local government taxes, including franchise fees for cable and telephone

S.150 would result in a huge tax giveaway to the telecommunications industry at the expense of state and local taxpayers, small businesses, and working families. The legislation would preempt local and state tax collection of gross receipts taxes, rights-of-way fees, franchise fees, and other current taxes on telecommunications services at an estimated cost of more than $9 billion per year. This loss of local revenue would directly translate into a loss of local services to cities and towns across the nation.


Fax and Email Your Senate Office A Letter

  a.. Sample letter text is available through the ACM's online Legislative Action Center, to help you quickly and easily draft a letter to your Senator. Just enter your zip code to format the letter easily on your own computer. The Legislative Action Center includes contact information with your Senator's fax number. OR

Call Your Senate Office and Say:

  a.. S. 150 does not simply extend the existing moratorium on Internet access taxes or tweak it to accommodate emerging technologies. Instead, S. 150 expands the existing moratorium by dramatically decreasing local taxing authority.

  b.. S. 2084 calls for a two-year extension of the existing moratorium on the imposition of new telecommunications taxes, which gives Congress, the FCC, industry and local governments time to determine the appropriate tax treatment for emerging telecommunications.

  c.. S. 2084 preserves the ban on email or Internet access taxes, as well as multiple and discriminatory taxes. The legislation also establishes parity among all types of Internet platforms, whether telephone lines, cable modems or DSL, which provides clear protections for consumers and tax guidance for local and state governments. Visit the ACM Legislative Action Center for More Information.