IB 

Union Calendar No. 122 

112TH CONGRESS 

1ST SESSION H. R. 1002 

[Report No. 112–188] 

To restrict any State or local jurisdiction from imposing a new discriminatory 

tax on cell phone services, providers, or property. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 10, 2011 

Ms. ZOE LOFGREN of California (for herself, Mr. FRANKS of Arizona, Mr. 

SMITH of Texas, Mr. COHEN, Mr. COBLE, Ms. JACKSON LEE of Texas, 

Mr. SENSENBRENNER, Mr. HALL, Mr. ROGERS of Kentucky, Mr. ACKERMAN, Mr. BARTON of Texas, Mr. GALLEGLY, Mr. UPTON, Mr. PALLONE, 

Mr. STEARNS, Ms. ESHOO, Mr. GENE GREEN of Texas, Mr. GUTIERREZ, 

Mr. HASTINGS of Florida, Mr. HOLDEN, Ms. EDDIE BERNICE JOHNSON

of Texas, Mr. KING of New York, Mrs. MALONEY, Ms. ROYBAL-ALLARD, 

Mr. ROYCE, Mr. THOMPSON of Mississippi, Mr. LUCAS, Mr. DOGGETT, 

Mr. DOYLE, Mr. FRELINGHUYSEN, Mr. JONES, Mr. LATHAM, Mr. LOBIONDO, Mrs. MYRICK, Mr. WHITFIELD, Mr. BRADY of Texas, Mrs. 

MCCARTHY of New York, Mr. MCGOVERN, Mr. PASCRELL, Mr. PITTS, 

Mr. ROTHMAN of New Jersey, Ms. LORETTA SANCHEZ of California, Mr. 

SESSIONS, Mr. SHIMKUS, Mr. MEEKS, Mrs. BONO MACK, Mr. BRADY of 

Pennsylvania, Mr. INSLEE, Mr. CHABOT, Mrs. BIGGERT, Mr. GONZALEZ, 

Mr. HOLT, Mr. SIMPSON, Mr. WEINER, Mr. CRENSHAW, Mr. CULBERSON, Mr. GRAVES of Missouri, Mr. ISRAEL, Mr. MATHESON, Mr. PLATTS, 

Mr. REHBERG, Mr. ROGERS of Michigan, Mr. ROSS of Arkansas, Mr. 

TIBERI, Mr. FORBES, Mr. WILSON of South Carolina, Mr. SULLIVAN, 

Mr. ALEXANDER, Mr. BISHOP of New York, Mrs. BLACKBURN, Mr. BURGESS, Mr. CARDOZA, Mr. CARTER, Mr. COLE, Mr. GARRETT, Mr. GERLACH, Mr. GRIJALVA, Mr. KING of Iowa, Mr. KLINE, Mr. MURPHY of 

Pennsylvania, Mr. RYAN of Ohio, Mr. DAVID SCOTT of Georgia, Mr. 

BARROW, Mr. BOREN, Mr. BOUSTANY, Mr. CONAWAY, Mr. COSTA, Mr. 

DENT, Ms. FOXX, Mr. MCCAUL, Mrs. MCMORRIS RODGERS, Mr. MACK, 

Mr. MARCHANT, Mr. POE of Texas, Mr. REICHERT, Ms. SCHWARTZ, Mr. 

WESTMORELAND, Ms. MATSUI, Mr. SIRES, Mrs. BACHMANN, Mr. HELLER, Mr. JORDAN, Mr. MCNERNEY, Mr. SHULER, Mr. SMITH of Nebraska, Ms. RICHARDSON, Mr. LATTA, Mr. WITTMAN, Ms. SPEIER, Mr. 


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SCALISE, Mr. CHAFFETZ, Mr. HARPER, Mr. HUNTER, Mr. LANCE, Mr. 

OLSON, Mr. PAULSEN, Mr. POSEY, Mr. ROONEY, Mr. THOMPSON of 

Pennsylvania, Mr. OWENS, Mr. CRITZ, Mr. REED, Mr. FITZPATRICK, 

Mrs. ADAMS, Mr. BARLETTA, Mrs. BLACK, Mr. GOSAR, Mr. GRIMM, Mr. 

HANNA, Mr. HUELSKAMP, Mr. HULTGREN, Mr. LONG, Mr. MCKINLEY, 

Mrs. NOEM, Mr. QUAYLE, Mr. RUNYAN, Mr. SMITH of New Jersey, Mr. 

BROUN of Georgia, Mr. CALVERT, Mr. DANIEL E. LUNGREN of California, Ms. GRANGER, Mr. BURTON of Indiana, Mr. GRIFFIN of Arkansas, Mr. TONKO, and Mr. HINOJOSA) introduced the following bill; which 

was referred to the Committee on the Judiciary 


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JULY 29, 2011 

Additional sponsors: Mr. RIBBLE, Mr. MARINO, Mr. ROSS of Florida, Ms. 

CLARKE of New York, Mr. BILBRAY, Mr. ROSKAM, Mr. SCHOCK, Mr. 

WALSH of Illinois, Mr. TOWNS, Mrs. CAPPS, Mr. CARSON of Indiana, 

Mrs. CHRISTENSEN, Mr. ALTMIRE, Mr. BACA, Mr. BRALEY of Iowa, Mr. 

PENCE, Mr. FLORES, Mr. CUELLAR, Mr. BOSWELL, Mr. BUCSHON, Mr. 

MCCOTTER, Mr. RAHALL, Mr. DEUTCH, Mr. MANZULLO, Mr. HIGGINS, 

Mr. WU, Ms. BASS of California, Mr. MCHENRY, Mr. GINGREY of Georgia, Mr. COFFMAN of Colorado, Mrs. CAPITO, Mr. HERGER, Mr. WEBSTER, Mr. FLEMING, Mr. DAVIS of Kentucky, Mr. HASTINGS of Washington, Mr. CAMP, Mr. KILDEE, Mr. JOHNSON of Ohio, Mrs. MILLER of 

Michigan, Mr. PEARCE, Mr. HEINRICH, Mr. STIVERS, Mr. FARENTHOLD, 

Mr. GARY G. MILLER of California, Mr. RIVERA, Mr. LUETKEMEYER, 

Mr. YOUNG of Florida, Mr. WEST, Mr. ROHRABACHER, Mrs. SCHMIDT, 

Mr. MILLER of Florida, Ms. JENKINS, Mr. NUGENT, Mr. CLAY, Mr. ISSA, 

Mr. KINZINGER of Illinois, Ms. MCCOLLUM, Mr. FATTAH, Mr. GARDNER, 

Mr. GIBSON, Mr. HUIZENGA of Michigan, Ms. HERRERA BEUTLER, Mr. 

AUSTRIA, Ms. WILSON of Florida, Mr. YODER, Mr. HURT, Mr. AL

GREEN of Texas, Mr. DOLD, Mr. SCHRADER, Mr. SOUTHERLAND, Mr. 

REYES, Mr. BISHOP of Georgia, Mr. THORNBERRY, Mr. SAM JOHNSON

of Texas, Mr. WALBERG, Mr. ROKITA, Mr. PAYNE, Ms. SEWELL, Ms. 

HAYWORTH, Ms. FUDGE, Mr. PAUL, Mr. HECK, Mr. MICHAUD, Mr. 

MCKEON, Mr. LABRADOR, Mr. MEEHAN, Mr. BENISHEK, Mr. DENHAM, 

Ms. ROS-LEHTINEN, Mr. KELLY, and Mr. HONDA

JULY 29, 2011 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 10, 2011] 


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A BILL 

To restrict any State or local jurisdiction from imposing 

a new discriminatory tax on cell phone services, providers, or property. 


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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 Tax Fairness 

5 Act of 2011’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) It is appropriate to exercise congressional en9 forcement authority under section 5 of the 14th 

10 Amendment to the Constitution of the United States 

11 and Congress’ plenary power under article I, section 

12 8, clause 3 of the Constitution of the United States 

13 (commonly known as the ‘‘commerce clause’’) in order 

14 to ensure that States and political subdivisions there15 of do not discriminate against providers and con16 sumers of mobile services by imposing new selective 

17 and excessive taxes and other burdens on such pro18 viders and consumers. 

19 (2) In light of the history and pattern of dis20 criminatory taxation faced by providers and con21 sumers of mobile services, the prohibitions against 

22 and remedies to correct discriminatory State and 

23 local taxation in section 306 of the Railroad Revital24 ization and Regulatory Reform Act of 1976 (49 

25 U.S.C. 11501) provide an appropriate analogy for 


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1 congressional action, and similar Federal legislative 

2 measures are warranted that will prohibit imposing 

3 new discriminatory taxes on providers and consumers 

4 of mobile services and that will assure an effective, 

5 uniform remedy. 

6 SEC. 3. MORATORIUM. 

7 (a) IN GENERAL.—No State or local jurisdiction shall 

8 impose a new discriminatory tax on or with respect to mo9 bile services, mobile service providers, or mobile service 

10 property, during the 5-year period beginning on the date 

11 of enactment of this Act. 

12 (b) DEFINITIONS.—In this Act: 

13 (1) MOBILE SERVICE.—The term ‘‘mobile serv14 ice’’ means commercial mobile radio service, as such 

15 term is defined in section 20.3 of title 47, Code of 

16 Federal Regulations, as in effect on the date of enact17 ment of this Act, or any other service that is pri18 marily intended for receipt on, transmission from, or 

19 use with a mobile telephone or other mobile device, in20 cluding but not limited to the receipt of a digital 

21 good. 

22 (2) MOBILE SERVICE PROPERTY.—The term 

23 ‘‘mobile service property’’ means all property used by 

24 a mobile service provider in connection with its busi25 ness of providing mobile services, whether real, perVerDate Mar 15 2010 00:35 Jul 30, 2011 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H1002.RH H1002

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1 sonal, tangible, or intangible (including goodwill, li2 censes, customer lists, and other similar intangible 

3 property associated with such business). 

4 (3) MOBILE SERVICE PROVIDER.—The term ‘‘mo5 bile service provider’’ means any entity that sells or 

6 provides mobile services, but only to the extent that 

7 such entity sells or provides mobile services. 

8 (4) NEW DISCRIMINATORY TAX.—The term ‘‘new 

9 discriminatory tax’’ means a tax imposed by a State 

10 or local jurisdiction that is imposed on or with re11 spect to, or is measured by, the charges, receipts, or 

12 revenues from or value of— 

13 (A) a mobile service and is not generally 

14 imposed, or is generally imposed at a lower rate, 

15 on or with respect to, or measured by, the 

16 charges, receipts, or revenues from other services 

17 or transactions involving tangible personal prop18 erty; 

19 (B) a mobile service provider and is not 

20 generally imposed, or is generally imposed at a 

21 lower rate, on other persons that are engaged in 

22 businesses other than the provision of mobile 

23 services; or 

24 (C) a mobile service property and is not 

25 generally imposed, or is generally imposed at a 


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1 lower rate, on or with respect to, or measured by 

2 the value of, other property that is devoted to a 

3 commercial or industrial use and subject to a 

4 property tax levy, except public utility property 

5 owned by a public utility subject to rate of re6 turn regulation by a State or Federal regulatory 

7 authority; 

8 unless such tax was imposed and actually enforced on 

9 mobile services, mobile service providers, or mobile 

10 service property prior to the date of enactment of this 

11 Act. 

12 (5) STATE OR LOCAL JURISDICTION.—The term 

13 ‘‘State or local jurisdiction’’ means any of the several 

14 States, the District of Columbia, any territory or pos15 session of the United States, a political subdivision of 

16 any State, territory, or possession, or any govern17 mental entity or person acting on behalf of such 

18 State, territory, possession, or subdivision that has 

19 the authority to assess, impose, levy, or collect taxes 

20 or fees. 

21 (6) TAX.— 

22 (A) IN GENERAL.—The term ‘‘tax’’ means a 

23 charge imposed by a governmental entity for the 

24 purpose of generating revenues for governmental 

25 purposes, and excludes a fee imposed on a parVerDate Mar 15 2010 00:35 Jul 30, 2011 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H1002.RH H1002

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1 ticular entity or class of entities for a specific 

2 privilege, service, or benefit conferred exclusively 

3 on such entity or class of entities. 

4 (B) EXCLUSION.—The term ‘‘tax’’ does not 

5 include any fee or charge— 

6 (i) used to preserve and advance Fed7 eral universal service or similar State pro8 grams authorized by section 254 of the 

9 Communications Act of 1934 (47 U.S.C. 

10 254); or 

11 (ii) specifically dedicated by a State or 

12 local jurisdiction for the support of E–911 

13 communications systems. 

14 (c) RULES OF CONSTRUCTION.— 

15 (1) DETERMINATION.—For purposes of sub16 section (b)(4), all taxes, tax rates, exemptions, deduc17 tions, credits, incentives, exclusions, and other similar 

18 factors shall be taken into account in determining 

19 whether a tax is a new discriminatory tax. 

20 (2) APPLICATION OF PRINCIPLES.—Except as 

21 otherwise provided in this Act, in determining wheth22 er a tax on mobile service property is a new discrimi23 natory tax for purposes of subsection (b)(4)(A)(iii), 

24 principles similar to those set forth in section 306 of 


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1 the Railroad Revitalization and Regulatory Reform 

2 Act of 1976 (49 U.S.C. 11501) shall apply. 

3 (3) EXCLUSIONS.—Notwithstanding any other 

4 provision of this Act— 

5 (A) the term ‘‘generally imposed’’ as used in 

6 subsection (b)(4) shall not apply to any tax im7 posed only on— 

8 (i) specific services; 

9 (ii) specific industries or business seg10 ments; or 

11 (iii) specific types of property; and 

12 (B) the term ‘‘new discriminatory tax’’ 

13 shall not include a new tax or the modification 

14 of an existing tax that— 

15 (i) replaces one or more taxes that had 

16 been imposed on mobile services, mobile 

17 service providers, or mobile service property; 

18 (ii) is designed so that, based on infor19 mation available at the time of the enact20 ment of such new tax or such modification, 

21 the amount of tax revenues generated there22 by with respect to such mobile services, mo23 bile service providers, or mobile service 

24 property is reasonably expected to not ex25 ceed the amount of tax revenues that would 


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1 have been generated by the respective re2 placed tax or taxes with respect to such mo3 bile services, mobile service providers, or 

4 mobile service property; and 

5 (iii) is a local jurisdiction tax that 

6 may not be imposed without voter approval, 

7 provides for at least 90 days’ prior notice to 

8 mobile service providers, and is required by 

9 law to be collected from mobile service cus10 tomers. 

11 SEC. 4. ENFORCEMENT. 

12 Notwithstanding any provision of section 1341 of title 

13 28, United States Code, or the constitution or laws of any 

14 State, the district courts of the United States shall have ju15 risdiction, without regard to amount in controversy or citi16 zenship of the parties, to grant such mandatory or prohibi17 tive injunctive relief, interim equitable relief, and declara18 tory judgments as may be necessary to prevent, restrain, 

19 or terminate any acts in violation of this Act. 

20 (1) JURISDICTION.—Such jurisdiction shall not 

21 be exclusive of the jurisdiction which any Federal or 

22 State court may have in the absence of this section. 

23 (2) BURDEN OF PROOF.—The burden of proof in 

24 any proceeding brought under this Act shall be upon 


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1 the party seeking relief and shall be by a preponder2 ance of the evidence on all issues of fact. 

3 (3) RELIEF.—In granting relief against a tax 

4 which is discriminatory or excessive under this Act 

5 with respect to tax rate or amount only, the court 

6 shall prevent, restrain, or terminate the imposition, 

7 levy, or collection of not more than the discriminatory 

8 or excessive portion of the tax as determined by the 

9 court. 

10 SEC. 5. GAO STUDY. 

11 (a) STUDY.—The Comptroller General of the United 

12 States shall conduct a study, throughout the 5-year period 

13 beginning on the date of the enactment of this Act, to deter14 mine— 

15 (1) how, and the extent to which, taxes imposed 

16 by local and State jurisdictions on mobile services, 

17 mobile service providers, or mobile property, impact 

18 the costs consumers pay for mobile services; and 

19 (2) the extent to which the moratorium on dis20 criminatory mobile services taxes established in this 

21 Act has any impact on the costs consumers pay for 

22 mobile services. 

23 (b) REPORT.—Not later than 6 years after the date 

24 of the enactment of this Act, the Comptroller General shall 

25 submit, to the Committee on the Judiciary of the House 


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1 of Representatives and Committee on the Judiciary of the 

2 Senate, a report containing the results of the study required 

3 subsection (a) and shall include in such report rec4 ommendations for any changes to laws and regulations re5 lating to such results. 


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Union Calendar No. 122 

112TH CONGRESS 

1ST SESSION H. R. 1002 

[Report No. 112–188] 

A BILL 

To restrict any State or local jurisdiction from imservices, providers, or property. posing a new discriminatory tax on cell phone 

JULY 29, 2011 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


smartinez on DSK6TPTVN1PROD with BILLS