HomeMy WebLinkAboutInternetTaxFreedomAct_LtrToCapps_20151210t r 7"If,
Office of the City Council
990 Palm Street San Luis Obispo CA 93401-3249
805 781 7114
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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