II 

114TH CONGRESS 

1ST SESSION S. 1261 

To ensure that methods of collecting taxes and fees by private citizens 

on behalf of State and local governments are fair and effective and 

do not discriminate against interstate commerce for wireless telecommunications services. 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2015 

Mr. MANCHIN (for himself and Mr. MORAN) introduced the following bill; 

which was read twice and referred to the Committee on Commerce, 

Science, and Transportation 

A BILL 

To ensure that methods of collecting taxes and fees by private citizens on behalf of State and local governments 

are fair and effective and do not discriminate against 

interstate commerce for wireless telecommunications 

services. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Wireless Telecommuni5 cations Tax and Fee Collection Fairness Act of 2015’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) A State may designate an in-State or out2 of-State person as a collection agent for the State 

3 and impose upon the person a duty to collect certain 

4 taxes and fees for wireless telecommunications serv5 ices from residents of the State. 

6 (2) States have the sovereign right to tax their 

7 citizens, subject to the Constitution of the United 

8 States and Federal law. States do not have the right 

9 to tax interstate commerce or to impose taxes or 

10 other obligations on citizens of other States without 

11 limitation. 

12 (3) A collection agent for a State may feasibly 

13 collect taxes and fees from a customer in connection 

14 with a financial transaction to which the agent and 

15 customer are parties. 

16 (4) Congress can help ensure against unreason17 able burdens on interstate commerce by prohibiting 

18 each State from imposing a duty on any person to 

19 serve as a collection agent for the State unless the 

20 collection is in connection with a financial trans21 action. 

22 SEC. 3. DEFINITIONS. 

23 In this Act— 

24 (1) the term ‘‘financial transaction’’ means a 

25 transaction in which the purchaser or user of a wireVerDate Sep 11 2014 23:55 May 13, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1261.IS S1261

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1 less telecommunications service upon whom a tax, 

2 fee, or surcharge is imposed gives cash, credit, or 

3 any other exchange of monetary value or consider4 ation to the person who is required to collect or 

5 remit the tax, fee, or surcharge; 

6 (2) the term ‘‘local jurisdiction’’ means a polit7 ical subdivision of a State; 

8 (3) the term ‘‘State’’ means any of the several 

9 States, the District of Columbia, and any territory 

10 or possession of the United States; 

11 (4) the term ‘‘State or local jurisdiction’’ in12 cludes any governmental entity or person acting on 

13 behalf of a State or local jurisdiction that has the 

14 authority to assess, impose, levy, or collect taxes or 

15 fees; and 

16 (5) the term ‘‘wireless telecommunications serv17 ice’’ means a commercial mobile radio service, as de18 fined in section 20.3 of title 47, Code of Federal 

19 Regulations, or any successor thereto. 

20 SEC. 4. FINANCIAL TRANSACTION REQUIREMENT. 

21 (a) IN GENERAL.—A State, or a local jurisdiction of 

22 a State, may not require a person to collect from, or remit 

23 on behalf of, any other person a State or local tax, fee, 

24 or surcharge imposed on a purchaser or user with respect 

25 to the purchase or use of any wireless telecommunications 


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1 service within the State unless the collection or remittance 

2 is in connection with a financial transaction between— 

3 (1) the person that the State or local jurisdic4 tion requires to collect or remit the tax, fee, or sur5 charge; and 

6 (2) the purchaser or user of the wireless tele7 communications service. 

8 (b) RULE OF CONSTRUCTION.—Nothing in this sec9 tion shall be construed to affect the right of a State or 

10 local jurisdiction to require the collection of any tax, fee, 

11 or surcharge in connection with a financial transaction. 

12 SEC. 5. ENFORCEMENT. 

13 (a) PRIVATE RIGHT OF ACTION.—Any person ag14 grieved by a violation of section 4 may bring a civil action 

15 in an appropriate district court of the United States for 

16 equitable relief in accordance with subsection (b) of this 

17 section. 

18 (b) JURISDICTION OF DISTRICT COURTS.—Notwith19 standing section 1341 of title 28, United States Code, or 

20 the constitution or laws of any State, the district courts 

21 of the United States shall have jurisdiction, without re22 gard to the amount in controversy or citizenship of the 

23 parties, to grant such mandatory or prohibitive injunctive 

24 relief, interim equitable relief, and declaratory judgments 


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1 as may be necessary to prevent, restrain, or terminate any 

2 acts in violation of section 4. 

Æ 


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