September 17, 2003

Received and read the first time

September 18, 2003

Read the second time and placed on the calendar

To permanently extend the moratorium enacted by the Internet Tax Freedom Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Internet Tax Nondiscrimination Act'.

SEC. 2. PERMANENT EXTENSION OF INTERNET TAX FREEDOM ACT MORATORIUM.

(a) IN GENERAL- Subsection (a) of section 1101 of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to read as follows:

`(a) MORATORIUM- No State or political subdivision thereof may impose any of the following taxes:

`(1) Taxes on Internet access.

`(2) Multiple or discriminatory taxes on electronic commerce.'.

(b) CONFORMING AMENDMENTS- (1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking subsection (d).

(2) Section 1104(10) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking `unless' and all that follows through `1998'.

(3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking `except with respect to a tax (on Internet access) that was generally imposed and actually enforced prior to October 1, 1998,'.

(c) CLARIFICATION- The second sentence of section 1104(5), and the second sentence of section 1101(e)(3)(D), of the Internet Tax Freedom Act (47 U.S.C. 151 note) are each amended by inserting `, except to the extent such services are used to provide Internet access' before the period.

Passed the House of Representatives September 17, 2003.

Attest:

JEFF TRANDAHL,

Clerk.

Calendar No. 283

To permanently extend the moratorium enacted by the Internet Tax Freedom Act, and for other purposes.

September 17, 2003

September 18, 2003

END