Harkin Letter - internet taxes
TOM HARKIN
IOWA
(202) 224-3254
Fax (202) 224-9369
TTY (202) 224-4633
httpJ/h..i<'o.","'te.go'
April 27, 2004
COMMITTEES
AGRICULTURE
APPROPRIATIONS
HEALTH. EDUCATION,
LABOR AND PENSIONS
tinítrd ~tatrs ~matr
WASHINGTON, DC 20510-1502
SMALL BUSINESS
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Michael Van Milligen
City Manager's Office
50 West 13th street
Dubuque, IA 52001
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Dear Michael:
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Thank you for contacting me.
I am always glad to hear from
you.
I appreciate knowing of your views regarding Internet taxes.
As you may know, the Internet Tax Freedom Act (ITFA) was signed
into law in 1998 and provided that no new taxes specific to the
Internet could be imposed by local governments until November
2003. Since the expiration of this law, we have not seen actions
by states to move forward with new tax laws in this area. I am
hopeful that the Senate will take this issue up for consideration
soon.
I think there is broad support for not taxing access to the
Internet. Internet sales are potentially subject to more than
30,000 state and local taxing jurisdictions in this country. I
am opposed to allowing special local government taxes on Internet
access.
One problem, however, is the definition of Internet access.
Officials at the Iowa Department of Revenue, along with officials
of many other sta.tes, believe that the definition in 5.150, The
Internet Tax Non-Discrimination Act, could result in a large
share of the telecommunications industry becoming exempt from
local taxes. Iowa officials estimate they could lose about $50
million per year.
I am hopeful that an appropriate solution to this problem
will be found soon so that we can avoid taxing access to the
Internet, while also avoiding serious fiscal damage to states and
localities. .
150 RRST AVENUE. NE
SUITE 370
CEDAR RAPIDS. IA 52401
(319) 365-4504
210 WAlliUT STREET
733 FEDERAL BUILDING
DES MOINES, IA 50309
1515) 284-4574
1606 BRADY STREET
SUITE 323
DAVENPORT, IA 52803
1563) 322-1338
350 WEST 6TH STREET
315 FEDERAL BUILDING
DUBUQUE, IA 52001
(563) 582-2130
320 6TH STREET
110 FEDERAL BUILDING
SIOUX CflY, IA 51101
(712) 252-1550
Again, thanks for sharing your views with me,. Please don' t
hesitate to let me know how you feel on any issue that concerns
you.
Sincerely,
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Tom Harkin
United States Senator
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