118 STAT. 2615 PUBLIC LAW 108–435—DEC. 3, 2004 Public Law 108–435 108th Congress An Act To make permanent the moratorium on taxes on Internet access and multiple and discriminatory taxes on electronic commerce imposed by the Internet Tax Freedom Act. 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. FOUR YEAR EXTENSION OF INTERNET TAX 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 during the period beginning November 1, 2003, and ending November 1, 2007: ‘‘(1) Taxes on Internet access. ‘‘(2) Multiple or discriminatory taxes on electronic com merce.’’. (b) CONFORMING AMENDMENTS.—(1) Section 1101 of the Inter net Tax Freedom Act (47 U.S.C. 151 note) is amended by striking subsection (d) and redesignating subsections (e) and (f) as sub sections (d) and (e), respectively. (2) Section 1104(10) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to read as follows: ‘‘(10) TAX ON INTERNET ACCESS.— ‘‘(A) IN GENERAL.—The term ‘tax on Internet access’ means a tax on Internet access, regardless of whether such tax is imposed on a provider of Internet access or a buyer of Internet access and regardless of the terminology used to describe the tax. ‘‘(B) GENERAL EXCEPTION.—The term ‘tax on Internet access’ does not include a tax levied upon or measured by net income, capital stock, net worth, or property value.’’. (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) INTERNET ACCESS SERVICE; INTERNET ACCESS.— (1) INTERNET ACCESS SERVICE.—Paragraph (3)(D) of section 1101(d) (as redesignated by subsection (b)(1) of this section) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking the second sentence and inserting ‘‘The 47 USC 609 note. Internet Tax Nondiscrimi nation Act. Dec. 3, 2004 [S. 150]
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