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League of California Cities
Home > News > News Articles > 2015 > December > Internet Tax Freedom Act Included in Trade Agreement, Cities Need to Email U.S. Senate Immediately
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Internet Tax Freedom Act Included in Trade Agreement, Cities Need to Email U.S. Senate Immediately

December 11, 2015
This week Congress moved to make the Internet Tax Freedom Act (ITFA) permanent when a conference committee included it in an unrelated Customs Reauthorization Conference Report.
This action came without notice and was completely unexpected. The League joined with other stakeholders to urge the removal of the provisions of the Customs bill prior to its passage, but help is needed from individual cities. 
Cities are urged to immediately email California Sens. Barbara Boxer and Deanne Feinstein to urge them to oppose the Customs bill, officially known as the Trade Facilitation and Trade Enforcement Act of 2015.
A vote on the conference report is expected next week before Congress breaks for the winter break.
Cities can use the League’s letter as a sample, and sent the emails to, and
The House has already acted on a bill to permanently extend ITFA, therefore the best opportunity to stop the extension is in the Senate.  
Originally enacted in 1998, this legislation would place a permanent moratorium on taxes imposed on access to the internet. While there is no city in California that imposes such a tax, the League has raised concerns regarding the evolving nature of the internet and how a permanent moratorium will impact city revenues. For example, city utility user tax revenues are being eroded as consumers migrate from traditional phone lines to broadband-based telecommunications services. 
The League has asked Congress to consider a short-term extension, instead of the permanent extension, to provide Congress an opportunity to revisit the policy in regular intervals. The Center on Budget Policy and Priorities has posted a blog that underscores the harm a permanent ban on internet access taxes would have on state and local revenues.

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