PUBLIC LAW 105-277—OCT. 21, 1998 112 STAT. 2681-726 ^ a tax on persons engaged in electronic commerce which also may have been subject to a sales or use tax thereon. (C) SALES OR USE TAX.— For purposes of subparagraph (B), the term "sales or use tax" means a tax that is imposed on or incident to the sale, purchase, storage, consumption, distribution, or other use of tsingible personal property or services as may be defined by laws imposing such tax and which is measured by the amount of the sales price or other charge for such property or s(jrvice. (7) STATE. —The term "State" means any of the several States, the District of Columbia, or any commonwealth, territory, or possession of the United States. (8) TAX.— (A) IN GENERAL.— The term "tax" means— (i) any charge imposed by any governmental entity for the purpose of generating revenues for governmental purposes, and is not a fee imposed for a specific privilege, service, or benefit conferred; or (ii) the imposition on a seller of an obligation to collect and to remit to a governmental entity any sales or use tax imposed on a buyer by a governmental entity. (B) EXCEPTION.— Such term does not include any franchise fee or similar fee imposed by a State or local fi*anchising authority, pursuant to section 622 or 653 of the Communications Act of 1934 (47 U.S.C. 542, 573), or any other fee related to obligations or telecommunications carriers under the Communications Act of 1934 (47 U.S.C. 151 et seq.). (9) TELECOMMUNICATIONS SERVICE.— The term "telecommunications service" has the meaning given such term in section 3(46) of the Communications Act of 1934 (47 U.S.C. 153(46)) and includes communications services (as defined in section 4251 of the Internal Revenue Code of 1986). (10) TAX ON INTERNET ACCESS. —The term "tax on Internet access" means a tax on Internet access, including the enforcement or application of any new or preexisting tax on the sale or use of Internet services unless such tax was generally imposed and actually enforced prior to October 1, 1998. TITLE XII—OTHER PROVISIONS SEC. 1201. DECLARATION THAT INTERNET SHOULD BE FREE OF NEW FEDERAL TAXES. It is the sense of Congress that no new Federal taxes similar to the taxes described in section 1101(a) should be enacted with respect to the Internet and Internet access during the moratorium provided in such section. SEC. 1202. NATIONAL TRADE ESTIMATE. Section 181 of the Trade Act of 1974 (19 U.S.C. 2241) is amended— (1) in subsection (a)(1)— (A) in subparagraph (A)— (i) by striking "and" at the end of clause (i); (ii) by inserting "and" at the end of clause (ii); and
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