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HomeMy WebLinkAboutInternetTaxFreedomAct_LtrToCapps_20151210t r 7"If, Office of the City Council 990 Palm Street San Luis Obispo CA 93401-3249 805 781 7114 slucit,y arg December 10, 2015 The Honorable Lois Capps 1411 Marsh Street, Suite 205 San Luis Obispo, CA 93401 Fax: (805) 546 - 8368 RE: Internet Tax Freedom Act REQUEST FOR AMENDMENT Dear Congresswoman Capps: The City of San Luis Obispo strongly opposes a permanent Internet Tax Freedom Act (ITFA) if it does not include an exception for voter -approved local taxes on telecommunications, such as the following: AMENDMENT FOR VOTER APPROVED TAXES: Section 1105 (5) INTERNET ACCESS - new) F. Notwithstanding subsection (B) above, a local tax on telecommunication services that is, or has been, subject to voter approval pursuant to state law may be imposed on telecommunications that are sold to, or purchased by, a user to access content, information, or other services offered over the Internet. The City of San Luis Obispo requests the inclusion of this exception for the following reasons: Respects the principle of "local control" by upholding the decisions of our local voters on: what to tax, at what rate, and whom to exempt. Avoids the current bias of ITFA that allows the taxation of older and poorer persons using traditional landline telecommunications, while prohibiting the taxation of persons who can afford to use newer broadband technologies. Does not impose a new telecommunications tax, but rather seeks to allow the equal enforcement of an existing tax, without discriminating based on technology. Does not seek to tax internet services, and except for telecommunications, it leaves ITFA's internet protections intact. Only applies to states that impose a requirement that their local taxes be voter - approved. Currently, only California has such a state requirement, as well as a local tax on telecommunications. Honors the principle of "states' rights" by respecting California law (namely, the constitutional requirement of voter -approved local taxes - Proposition 218), which has proven to be effective in maintaining lower local taxes on telecommunications. As an alternative to a permanent ban (without a voter approved exception), we would prefer another one year extension of ITFA, as we understand is being proposed in the Omnibus Spending bill. Thank you for protecting our voter -approved local tax revenues. Sincerely, Jan Howell Marx Mayor cc: San Luis Obispo City Council Senator Barbara Boxer, fax (202) 224 - 0454 Senator Dianne Feinstein, fax (202) 228 - 3954