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/Ds A a <br />INTERNETTAXfrompage 1 •••••••••• .•.•.••••.•...•..••••.•....see& <br />4 This definitional change would prohibit a local <br />tax on any "telecommunication service" that is <br />used for Internet access. Nearly all telep pne <br />.services, including local dial up, wireless, satellite, <br />and broadband (DSL and cable modem), provide <br />Internet access. H.R. 49 and S. 150 will limit the <br />extent to which cities that rely on existing local <br />utilities taxes can finance essential services, such <br />as police, fire, streets, and parks. <br />Moreover, the situation is likely to get worse in <br />the future. Soon, major telephone and Internet <br />service providers will offer "packages" that bundle <br />together Internet access and unlimited telephone <br />services. Unfortunately, under the proposed <br />language, such bundled services will likely be <br />considered "tax- free ", in a manner that is regres- <br />sive and unfair. Even if the average consumer <br />continues to be subject to the local tax (UUT) on <br />traditional telecommunication services, those <br />persons who could afford computers and high- <br />speed Internet access (i.e., DSL and cable mo- <br />dem) would slip through this loophole and perma- <br />nently escape taxation on similar services. <br />the Senate is likely to act on the bill any day. Don't <br />forget to Cc the League, we're tracking city oppo- <br />sit,on. <br />Please contact Jessica Mullan <br />'muhan@cacities.org 916.658.8243) with the <br />League if you have additional questions about this <br />federal legislation. FAX #s for each Senator can <br />be found below. <br />Senator Dianne Feinstein, Fax: (202) 228- <br />3954; Senator Barbara Boxer, Fax: (415) 956- <br />6701 (automatically forwards to DC). <br />2003 NEW LAW & <br />ELECTION SEMINAR <br />MONTEREY, DECEMBER 10 -12, 2003 <br />LETTERS NEEDED IMMEDIATELYI <br />The League alerted cities about this issue in <br />September. Since that time, the House of Repre- <br />sentatives swiftly approved H.R. 49 with the overly <br />broad definition of Internet access. The Senate is <br />our last chance to strike the extremely broad <br />language in the federal legislation by convincing <br />our Senators to oppose the expansion of the <br />definition in the Senate version of the Internet Tax <br />Bill (S.150) and instead maintain the definition of <br />Internet Access undercurrent law. <br />The League is asking cities that impose local <br />taxes on telecommunications or cable services to <br />personalize and send a newly drafted letter to both <br />California Senators IMMEDIATELY, urging them <br />to remove the detrimental expansion of the defini- <br />tion of "Internet Access" from the "Internet Tax <br />Non - Discrimination Act of 2003" (S.150). <br />A sample letter is available at the League's <br />Federal Issues Webpage: www.cacities.ora/ <br />federal. Please FAX YOUR LETTERS IN ASAP, <br />Register at www. cacities.ora /events <br />today for the 2003 City Clerks' New Law & <br />Election Seminar. Join your colleagues in <br />beautiful Monterey for a jam - packed seminar. <br />HIGHLIGHTS <br />• The Art of Taking Minutes and Crafting <br />Agenda ReportsGuidelines for Notice <br />of Public Hearings, Meetings and <br />Actions <br />• The Ethos of Ethics <br />• New Law & Election Update <br />• Leaders are Made, Not Bom <br />• Saving Local Democracy —the No <br />vember 2004 Ballot <br />• Stuff Happens (and then you fix it!) <br />Mini -expo <br />For further information email Lorraine <br />Okabe at okabel @cacities.org or call (916) <br />658 -8236. <br />Visit the League's Official Web Site -- www.cacities.org PRIORITY FOCUS /PAGE 3 <br />