Washington, DC – U.S. Senators Lamar Alexander (R-TN), Tom Carper (D-DE), Dianne Feinstein (D-Calif.) and Kay Bailey Hutchison (R-TX) today introduced legislation that would put in place a two-year moratorium on internet access taxes, but do so in a way that would not cost local and state governments millions.

Under alternative legislation sponsored by Senators Ron Wyden and George Allen, California cities and counties stand to lose as much as $836 million in tax revenues.

“The legislation that we introduce today would put the internet tax moratorium back in place on a two-year temporary basis, but it would do so in a way that does not cost cities and counties as much as $11.7 billion in tax revenues nationwide and $836 million in California,” Senator Feinstein said. “This issue has energized cities like no other issue I have seen. In fact, I have heard from 118 concerned cities and counties in my State. I have also heard from virtually all state and local governmental organizations from around the nation. They are all agreed – the alternative legislation sponsored by Senators Wyden and Allen could cost local governments billions . ”

Following is a partial list of the losses that local and state jurisdictions could lose if the Wyden-Allen legislation goes into effect. 

Jurisdictions Potential Losses Under Wyden-Allen Legislation

Nationwide:	$11.7 billion
California:	$836 million
Los Angeles City :	$225 million (full loss of UUT)
Pasadena :	$11.4 million
Sacramento :	$19 million
San Diego County :	$3 million
San Francisco :	$30 million
San Jose :	$9.5 million
Las Vegas :	$12.1 million
Miami :	$51.8 million
Portland :	$57.7 million
Seattle :	$30 million

ALEXANDER-CARPER BILL  

•  Institutes a two-year moratorium on Internet access tax that would bar state and local taxes on Internet access. Tax exemption would be limited to services that bring the Internet into your home or business.

•  Makes Digital Subscriber Lines (DSL) used for Internet access non-taxable so the playing field is level among competing technologies.

ALLEN-WYDEN BILL  

•  Institutes a permanent moratorium on Internet access taxes that would bar state and local taxes on Internet access.

•  The Allen-Wyden definition of “Internet access” could be interpreted to include services that go well beyond those that simply bring the Internet into your home or business – costing cities and counties millions.

Opposition to Allen-Wyden

Senator Feinstein has received 118 letters or phone calls from concerned California cities and counties. Including:

Organizations:

National League of Cities
US Conference of Mayors
American Federation of State, County, and Municipal Employees (AFSCME)
Council of State Governments
International Association of Fire Fighters
League of California Cities
National Association of Counties
National Conference of State Legislatures
National Education Association
National Governors Association

Cities of:

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