Page:United States Statutes at Large Volume 118.djvu/2647

 118 STAT. 2617 PUBLIC LAW 108–435—DEC. 3, 2004 administrative agency of the State or political subdivision thereof, that such agency has interpreted and applied such tax to Internet access services; and ‘‘(B) a State or political subdivision thereof generally collected such tax on charges for Internet access. ‘‘(2) TERMINATION.—This subsection shall not apply after November 1, 2005.’’. SEC. 4. ACCOUNTING RULE. The Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by adding at the end the following: ‘‘SEC. 1106. ACCOUNTING RULE. ‘‘(a) IN GENERAL.—If charges for Internet access are aggregated with and not separately stated from charges for telecommunications services or other charges that are subject to taxation, then the charges for Internet access may be subject to taxation unless the Internet access provider can reasonably identify the charges for Internet access from its books and records kept in the regular course of business. ‘‘(b) DEFINITIONS.—In this section: ‘‘(1) CHARGES FOR INTERNET ACCESS.—The term ‘charges for Internet access’ means all charges for Internet access as defined in section 1105(5). ‘‘(2) CHARGES FOR TELECOMMUNICATIONS SERVICES.—The term ‘charges for telecommunications services’ means all charges for telecommunications services, except to the extent such services are purchased, used, or sold by a provider of Internet access to provide Internet access.’’. SEC. 5. EFFECT ON OTHER LAWS. The Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by section 4, is amended by adding at the end the following: ‘‘SEC. 1107. EFFECT ON OTHER LAWS. ‘‘(a) UNIVERSAL SERVICE.—Nothing in this Act shall prevent the imposition or collection of any fees or charges used to preserve and advance Federal universal service or similar State programs— ‘‘(1) authorized by section 254 of the Communications Act of 1934 (47 U.S.C. 254); or ‘‘(2) in effect on February 8, 1996. ‘‘(b) 911 AND E–911 SERVICES.—Nothing in this Act shall pre vent the imposition or collection, on a service used for access to 911 or E–911 services, of any fee or charge specifically designated or presented as dedicated by a State or political subdivision thereof for the support of 911 or E–911 services if no portion of the revenue derived from such fee or charge is obligated or expended for any purpose other than support of 911 or E–911 services. ‘‘(c) NON TAX REGULATORY PROCEEDINGS.—Nothing in this Act shall be construed to affect any Federal or State regulatory pro ceeding that is not related to taxation.’’. SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE INTERNET. The Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by section 5, is amended by adding at the end the following:

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