Federal Internet Tax Prohibition Act of 2005

Federal Internet Tax Prohibition Act of 2005 - Amends the Internal Revenue Code to exempt Internet access service from the excise tax on communication services.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 758 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 758

 To amend the Internal Revenue Code of 1986 to ensure that the federal 
excise tax on communication services does not apply to internet access 
                                service.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 11, 2005

 Mr. Allen (for himself and Mr. Wyden) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to ensure that the federal 
excise tax on communication services does not apply to internet access 
                                service.

    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 ``Federal Internet Tax Prohibition Act 
of 2005''.

SEC. 2. PROHIBITION ON EXTENSION OF FEDERAL EXCISE TAX.

    Section 4251 of the Internal Revenue Code of 1986 (relating to the 
imposition of federal excise tax on communication services) is amended 
by adding at the end the following new subsection:
    ``(e) Exception for Internet Access Services.--
            ``(1) In general.--The tax imposed under subsection (a) 
        shall not apply to any internet access service.
            ``(2) Definition.--For purposes of this subsection, the 
        term `internet access service' has the same meaning given the 
        term in section 1104(5) of the Internet Tax Freedom Act (47 
        U.S.C. 151 note).''.
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