II 

110TH CONGRESS 

1ST SESSION S. 34 

To promote simplification and fairness in the administration and collection 

of sales and use taxes. 

IN THE SENATE OF THE UNITED STATES 

MAY 22, 2007 

Mr. ENZI introduced the following bill; which was read twice and referred to 

the Committee on Finance 

A BILL 

To promote simplification and fairness in the administration 

and collection of sales and use taxes. 

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 ‘‘Sales Tax Fairness 

5 and Simplification Act’’. 

6 SEC. 2. CONSENT OF CONGRESS. 

7 The Congress consents to the Streamlined Sales and 

8 Use Tax Agreement. 


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1 SEC. 3. SENSE OF THE CONGRESS. 

2 (a) SALES AND USE TAX SYSTEM.—It is the sense 

3 of the Congress that the sales and use tax system estab4 lished by the Streamlined Sales and Use Tax Agreement, 

5 to the extent that it meets the minimum simplification re6 quirements of section 7, provides sufficient simplification 

7 and uniformity to warrant Federal authorization to Mem8 ber States that are parties to the Agreement to require 

9 remote sellers, subject to the conditions provided in this 

10 Act, to collect and remit the sales and use taxes of such 

11 Member States and of local taxing jurisdictions of such 

12 Member States. 

13 (b) PURPOSE.—The purpose of this Act is to— 

14 (1) effectuate the limited authority granted to 

15 Member States under the Streamlined Sales and 

16 Use Tax Agreement; and 

17 (2) not grant additional authority unrelated to 

18 the accomplishment of the purpose described in 

19 paragraph (1). 

20 SEC. 4. AUTHORIZATION TO REQUIRE COLLECTION OF 

21 SALES AND USE TAXES. 

22 (a) GRANT OF AUTHORITY.— 

23 (1) IN GENERAL.—Each Member State under 

24 the Streamlined Sales and Use Tax Agreement is 

25 authorized, subject to the requirements of this sec26 tion, to require all sellers not qualifying for the 


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1 small business exception provided under subsection 

2 (d) to collect and remit sales and use taxes with re3 spect to remote sales sourced to that Member State 

4 under the Agreement. 

5 (2) REQUIREMENTS FOR AUTHORITY.—The au6 thorization provided under paragraph (1) shall be 

7 granted once all of the following have occurred: 

8 (A) 10 States comprising at least 20 per9 cent of the total population of all States impos10 ing a sales tax, as determined by the 2000 Fed11 eral census, have petitioned for membership and 

12 have become Member States under the Agree13 ment. 

14 (B) The following necessary operational as15 pects of the Agreement have been implemented 

16 by the Governing Board: 

17 (i) Provider and system certification. 

18 (ii) Setting of monetary allowance by 

19 contract with providers. 

20 (iii) Implementation of an on-line 

21 multistate registration system. 

22 (iv) Adoption of a standard form for 

23 claiming exemptions electronically. 

24 (v) Establishment of advisory coun25 cils. 


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1 (vi) Promulgation of rules and proce2 dures for dispute resolution. 

3 (vii) Promulgation of rules and proce4 dures for audits. 

5 (viii) Provisions for funding and staff6 ing the Governing Board. 

7 (C) Each Member State has met the re8 quirements to provide and maintain the data9 bases and the taxability matrix described in the 

10 Agreement, pursuant to requirements of the 

11 Governing Board. 

12 (3) LIMITATION OF AUTHORITY.—The author13 ization provided under paragraph (1)— 

14 (A) shall be granted notwithstanding any 

15 other provision of law; and 

16 (B) is dependent upon the Agreement, as 

17 amended, meeting the minimum simplification 

18 requirements of section 7. 

19 (b) TERMINATION OF AUTHORITY.— 

20 (1) IN GENERAL.—The authorization provided 

21 under subsection (a) shall terminate for all States 

22 if— 

23 (A) the requirements contained in sub24 section (a) cease to be satisfied; or 


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1 (B) any amendment adopted to the Agree2 ment after the date of enactment of this Act is 

3 not within the scope of the administration of 

4 sales and use taxes or taxes on telecommuni5 cations services by the Member States. 

6 (2) LOSS OF MEMBER STATE STATUS.—The au7 thorization provided under subsection (a) shall ter8 minate for a Member State, if such Member State 

9 no longer meets the requirements for Member State 

10 status under the terms of the Agreement. 

11 (c) DETERMINATION OF STATUS.— 

12 (1) IN GENERAL.—The Governing Board shall 

13 determine if Member States are in compliance with 

14 the requirements of subsections (a) and (b). 

15 (2) COMPLIANCE DETERMINATION.—Upon the 

16 determination of the Governing Board that all the 

17 requirements of subsection (a) have been satisfied, 

18 the authority of each Member State to require a sell19 er to collect and remit sales and use taxes shall com20 mence on the first day of a calendar quarter at least 

21 6 months after the date the Governing Board makes 

22 its determination. 

23 (d) SMALL BUSINESS EXCEPTION.—No seller shall 

24 be subject to a requirement of any State to collect and 


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1 remit sales and use taxes with respect to a remote sale 

2 if— 

3 (1) the seller and its affiliates collectively had 

4 gross remote taxable sales nationwide of less than 

5 $5,000,000 in the calendar year preceding the date 

6 of such sale; or 

7 (2) the seller and its affiliates collectively meet 

8 the $5,000,000 threshold of this subsection, but the 

9 seller has less than $100,000 in gross remote tax10 able sales nationwide. 

11 SEC. 5. TRIBAL GOVERNMENTS. 

12 (a) STATUS AS MEMBER STATE.— 

13 (1) IN GENERAL.—Any federally recognized In14 dian Tribe that imposes a generally applicable sales 

15 tax may, if such Tribe complies with the terms of 

16 this Act— 

17 (A) petition to become a Member State 

18 under the Agreement; and 

19 (B) exercise the authority provided under 

20 section 4. 

21 (2) DECISION OF THE GOVERNING BOARD.— 

22 (A) IN GENERAL.—If the effect of any fed23 erally recognized Indian Tribe’s law, rules, reg24 ulations, and policies is compliant with each of 

25 the terms of the Agreement, and the Indian 


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1 Tribe has entered an agreement with the pri2 mary State where it is located, the Governing 

3 Board shall consider such Tribe for admission 

4 as a Member State to the Agreement on the 

5 same basis as States. 

6 (B) NO STATE-TRIBAL AGREEMENT

7 PRESENT.—If a petitioning Indian Tribe and 

8 the primary State in which it is located have at9 tempted to negotiate, but have not reached, an 

10 agreement as described in subparagraph (A) 

11 within 2 years after the date of the submission 

12 of such petition, the Governing Board shall con13 sider such Tribe for admission as a Member 

14 State to the Agreement on the same basis as 

15 States without regard to the presence of a 

16 State-tribal agreement. 

17 (3) MEMBERSHIP ON THE GOVERNING

18 BOARD.— 

19 (A) IN GENERAL.—If any federally recog20 nized Indian Tribes are accorded Member State 

21 status under the Agreement under this section, 

22 those Tribes shall be represented on the Gov23 erning Board by at least 1 member. 

24 (B) MULTIPLE TRIBES.—If 2 or more fed25 erally recognized Indian Tribes are accorded 


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1 Member State status under the Agreement 

2 under this section, additional representation of 

3 such Tribes on the Governing Board shall be 

4 determined by the Governing Board, in con5 sultation with those Tribes that are Member 

6 States. 

7 (b) RULE OF CONSTRUCTION.—Nothing in this Act 

8 or the Agreement shall be construed as— 

9 (1) diminishing an Indian Tribe’s sovereignty 

10 or characterizing an Indian Tribe as a State for 

11 other purposes; 

12 (2) affecting existing tax agreements between 

13 Indian Tribal Governments and States; 

14 (3) preventing Indian Tribal Governments and 

15 States from entering into bilateral agreements for 

16 the collection and allocation of sales taxes (whether 

17 or not such bodies are admitted as Member States 

18 to the Agreement); or 

19 (4) overriding established principles of Federal 

20 law governing— 

21 (A) the taxing jurisdiction of Indian Tribal 

22 Governments; and 

23 (B) the immunities of Indian Tribal Gov24 ernments and their members from State taxVerDate Aug 31 2005 19:15 May 23, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S34.IS S34

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1 ation with respect to on-reservation trans2 actions. 

3 SEC. 6. DETERMINATIONS BY GOVERNING BOARD AND JU4 DICIAL REVIEW OF SUCH DETERMINATIONS. 

5 (a) PETITION.—At any time after the Governing 

6 Board has made the determination required under section 

7 4(c)(2), any person who may be affected by the Agreement 

8 may petition the Governing Board for a determination on 

9 any issue relating to the implementation of the Agreement. 

10 (b) REVIEW IN COURT OF FEDERAL CLAIMS.—Any 

11 person who submits a petition under subsection (a) may 

12 bring an action against the Governing Board in the United 

13 States Court of Federal Claims for judicial review of the 

14 action of the Governing Board on that petition if— 

15 (1) the petition relates to an issue of whether— 

16 (A) a Member State has satisfied or con17 tinues to satisfy the requirements for Member 

18 State status under the Agreement; 

19 (B) the Governing Board has performed a 

20 nondiscretionary duty of the Governing Board 

21 under the Agreement; 

22 (C) the Agreement continues to satisfy the 

23 minimum simplification requirements set forth 

24 in section 7; or 


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1 (D) any other requirement of section 4 has 

2 been satisfied; and 

3 (2) the petition is denied by the Governing 

4 Board in whole or in part with respect to that issue, 

5 or the Governing Board fails to act on the petition 

6 with respect to that issue not later than 6 months 

7 after the date on which the petition is submitted. 

8 (c) TIMING OF ACTION FOR REVIEW.—An action for 

9 review under this section shall be initiated not later than 

10 60 days after the denial of the petition by the Governing 

11 Board, or, if the Governing Board failed to act on the peti12 tion, not later than 60 days after the end of the 6-month 

13 period beginning on the day after the date on which the 

14 petition was submitted. 

15 (d) STANDARD OF REVIEW.— 

16 (1) IN GENERAL.—In any action for review 

17 under this section, the court shall set aside the ac18 tions, findings, and conclusions of the Governing 

19 Board found to be arbitrary, capricious, an abuse of 

20 discretion, or otherwise not in accordance with law. 

21 (2) REMAND.—If the court sets aside any ac22 tion, finding, or conclusion of the Governing Board 

23 under paragraph (1), the court shall remand the 

24 case to the Governing Board for further action con25 sistent with the decision of the court. 


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1 (e) JURISDICTION.— 

2 (1) GENERALLY.—Chapter 91 of title 28, 

3 United States Code, is amended by adding at the 

4 end the following: 

5 ‘‘§ 1510. Jurisdiction regarding the Streamlined Sales 

6 and Use Tax Agreement 

7 ‘‘The United States Court of Federal Claims shall 

8 have exclusive jurisdiction over actions for judicial review 

9 of determinations of the Governing Board of the Stream10 lined Sales and Use Tax Agreement under the terms and 

11 conditions provided in section 5 of the Sales Tax Fairness 

12 and Simplification Act.’’. 

13 (2) CONFORMING AMENDMENT TO TABLE OF

14 SECTIONS.—The table of sections at the beginning 

15 of chapter 91 of title 28, United States Code, is 

16 amended by adding at the end the following new 

17 item: 

‘‘1510. Jurisdiction regarding the streamlined sales and use tax agreement.’’. 

18 SEC. 7. MINIMUM SIMPLIFICATION REQUIREMENTS. 

19 (a) IN GENERAL.—The minimum simplification re20 quirements for the Agreement, which shall relate to the 

21 conduct of Member States under the Agreement and to 

22 the administration and supervision of such conduct, are 

23 as follows: 

24 (1) A centralized, one-stop, multistate registra25 tion system that a seller may elect to use to register 


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1 with the Member States, provided a seller may also 

2 elect to register directly with a Member State, and 

3 further provided that privacy and confidentiality 

4 controls shall be placed on the multistate registra5 tion system so that it may not be used for any pur6 pose other than the administration of sales and use 

7 taxes. Furthermore, no taxing authority within a 

8 Member State or a Member State that has with9 drawn or been expelled from the Agreement may use 

10 registration with the centralized registration system 

11 for the purpose of, or as a factor in determining, 

12 whether a seller has a nexus with that Member State 

13 for any tax at any time. 

14 (2) Uniform definitions of products and prod15 uct-based exemptions from which a Member State 

16 may choose its individual tax base, provided, how17 ever, that all local jurisdictions in that Member 

18 State shall have a common tax base identical to the 

19 State tax base of that Member State. A Member 

20 State may enact other product-based exemptions 

21 without restriction if the Agreement does not have 

22 a definition for the product or for a term that in23 cludes the product. A Member State shall relax the 

24 good faith requirement for acceptance of exemption 

25 certificates in accordance with section 317 of the 


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1 Agreement, as amended through the date of enact2 ment of this Act. 

3 (3) Uniform rules for sourcing and attributing 

4 transactions to particular taxing jurisdictions. 

5 (4) Uniform procedures for the certification of 

6 service providers and software on which a seller may 

7 elect to rely in order to determine Member State 

8 sales and use tax rates and taxability. 

9 (5) Uniform rules for bad debts and rounding. 

10 (6) Uniform requirements for tax returns and 

11 remittances. 

12 (7) Consistent electronic filing and remittance 

13 methods. 

14 (8) Single, State-level administration of all 

15 Member State and local sales and use taxes, includ16 ing a requirement for a State-level filing of tax re17 turns in each Member State. 

18 (9) A single sales and use tax rate per taxing 

19 jurisdiction, except that a State may impose a single 

20 additional rate, which may be zero, on food, food in21 gredients, and drugs, provided that this limitation 

22 does not apply to the items identified in section 308 

23 C of the Agreement, as amended through the date 

24 of enactment of this Act. 


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1 (10) A Member State shall eliminate caps and 

2 thresholds on the application of sales and use tax 

3 rates and exemptions based on value, provided that 

4 this limitation does not apply to the items identified 

5 in section 308 C of the Agreement, as amended 

6 through the date of enactment of this Act. 

7 (11) A provision requiring each Member State 

8 to complete a taxability matrix, as adopted by the 

9 Governing Board. The matrix shall include informa10 tion regarding terms defined by the Agreement in 

11 the Library of Definitions. The matrix shall also in12 clude, pursuant to the requirements of the Gov13 erning Board, information on use, entity, and prod14 uct based exemptions. 

15 (12) A provision requiring that each Member 

16 State relieves a seller or service provider from liabil17 ity to that Member State and local jurisdiction for 

18 collection of the incorrect amount of sales or use tax, 

19 and relieves the purchaser from penalties stemming 

20 from such liability, provided that collection of the 

21 improper amount is the result of relying on informa22 tion provided by that Member State regarding tax 

23 rates, boundaries, or taxing jurisdiction assignments, 

24 or in the taxability matrix regarding terms defined 

25 by the Agreement in the Library of Definitions. 


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1 (13) Audit procedures for sellers, including an 

2 option under which a seller not qualifying for the 

3 small business exception in section 4(d) may request, 

4 by notifying the Governing Board, to be subject to 

5 a single audit on behalf of all Member States for 

6 sales and use taxes (other than use taxes on goods 

7 and services purchased for the consumption of the 

8 seller). The Governing Board, in its discretion, shall 

9 authorize such a single audit. 

10 (14) As of the day that authority to require col11 lection commences under section 4, each Member 

12 State shall provide reasonable compensation for ex13 penses incurred by a seller directly in administering, 

14 collecting, and remitting sales and use taxes (other 

15 than use taxes on goods and services purchased for 

16 the consumption of the seller) to that Member State. 

17 Such compensation may vary in each Member State 

18 depending on the complexity of the sales and use tax 

19 laws in that Member State and may vary by the 

20 characteristics of sellers in order to reflect dif21 ferences in collection costs. Such compensation may 

22 be provided to a seller or a third party service pro23 vider whom a seller has contracted with to perform 

24 all the sales and use tax responsibilities of a seller. 


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1 (15) Appropriate protections for consumer pri2 vacy. 

3 (16) Governance procedures and mechanisms to 

4 ensure timely, consistent, and uniform implementa5 tion and adherence to the principles of the stream6 lined system and the terms of the Agreement. 

7 (17) Each Member State shall apply the sim8 plification requirements of the Agreement to taxes 

9 on telecommunications services, except as provided 

10 herein. This requirement is applicable to Member 

11 States as of July 1, 2010, except that sales and use 

12 taxes on telecommunications services shall be subject 

13 to the Agreement and the authority granted to the 

14 Member States when the requirements of section 

15 4(a) are met. On or after July 1, 2010, for those 

16 Member States which meet the requirements of this 

17 paragraph, the authority granted such Member 

18 States under section 4 may be exercised by such 

19 Member States, pursuant to the terms of section 4 

20 and section 6, with respect to taxes on telecommuni21 cations services other than sales and use taxes on 

22 such services. The following are exceptions to the re23 quirement established under this paragraph: 

24 (A) The requirement for one uniform re25 turn shall not apply, provided, however, there 


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1 shall be one uniform return for each type of tax 

2 on telecommunications services within a State. 

3 (B) The requirements for rate simplifica4 tion are modified to require that each taxing ju5 risdiction shall have only one rate for each type 

6 of tax on telecommunications services. 

7 (C) The requirements for tax base uni8 formity in section 302 of the Agreement shall 

9 apply to each type of tax on telecommunications 

10 services within a State, but shall not be con11 strued to require that the tax base for different 

12 types of taxes on telecommunications services 

13 must be identical to the tax base for sales and 

14 use taxes imposed on telecommunications serv15 ices. 

16 (18) Uniform rules and procedures for ‘‘sales 

17 tax holidays’’. 

18 (19) Uniform rules and procedures to address 

19 refunds and credits for sales taxes relating to cus20 tomer returns, restocking fees, discounts and cou21 pons, and rules to address allocations of shipping 

22 and handling and discounts applied to multiple item 

23 and multiple seller orders. 

24 (b) REQUIREMENT TO PROVIDE SIMPLIFIED TAX

25 SYSTEMS.— 


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1 (1) IN GENERAL.—The requirements of this 

2 section are intended to ensure that each Member 

3 State provides and maintains the necessary sim4 plifications to its sales and use tax system to war5 rant the collection authority granted to it in section 

6 4. 

7 (2) REDUCTION OF ADMINISTRATIVE BUR8 DENS.—The requirements of this section should be 

9 construed— 

10 (A) to require each Member State to sub11 stantially reduce the administrative burdens as12 sociated with sales and use taxes; and 

13 (B) as allowing each Member State to ex14 ercise flexibility in how these requirements are 

15 satisfied. 

16 (3) EXCEPTION.—In instances where exceptions 

17 to the requirements of this section can be exercised 

18 in a manner that does not materially increase the 

19 administrative burden on a seller obligated to collect 

20 or pay the taxes, such exceptions are permissible. 

21 SEC. 8. LIMITATION. 

22 (a) IN GENERAL.—Nothing in this Act shall be con23 strued as— 


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1 (1) subjecting a seller to franchise taxes, in2 come taxes, or licensing requirements of a Member 

3 State or political subdivision thereof; or 

4 (2) affecting the application of such taxes or re5 quirements or enlarging or reducing the authority of 

6 any Member State to impose such taxes or require7 ments. 

8 (b) NO EFFECT ON NEXUS, ETC.— 

9 (1) IN GENERAL.—No obligation imposed by 

10 virtue of the authority granted by section 4 shall be 

11 considered in determining whether a seller has a 

12 nexus with any Member State for any other tax pur13 pose. 

14 (2) PERMISSIBLE MEMBER STATE AUTHOR15 ITY.—Except as provided in subsection (a), and in 

16 section 4, nothing in this Act permits or prohibits a 

17 Member State from— 

18 (A) licensing or regulating any person; 

19 (B) requiring any person to qualify to 

20 transact intrastate business; 

21 (C) subjecting any person to State taxes 

22 not related to the sale of goods or services; or 

23 (D) exercising authority over matters of 

24 interstate commerce. 


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1 SEC. 9. EXPEDITED JUDICIAL REVIEW. 

2 (a) THREE-JUDGE DISTRICT COURT HEARING.— 

3 Notwithstanding any other provision of law, any civil ac4 tion challenging the constitutionality of this Act, or any 

5 provision thereof, shall be heard by a district court of 

6 three judges convened pursuant to the provisions of sec7 tion 2284 of title 28, United States Code. 

8 (b) APPELLATE REVIEW.— 

9 (1) IN GENERAL.—Notwithstanding any other 

10 provision of law, an interlocutory or final judgment, 

11 decree, or order of the court of three judges in an 

12 action under subsection (a) holding this Act, or any 

13 provision thereof, unconstitutional shall be review14 able as a matter of right by direct appeal to the Su15 preme Court. 

16 (2) 30-DAY TIME LIMIT.—Any appeal under 

17 paragraph (1) shall be filed not more than 30 days 

18 after the date of entry of such judgment, decree, or 

19 order. 

20 SEC. 10. DEFINITIONS. 

21 For the purposes of this Act the following definitions 

22 apply: 

23 (1) AFFILIATE.—The term ‘‘affiliate’’ means 

24 any entity that controls, is controlled by, or is under 

25 common control with a seller. 


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1 (2) GOVERNING BOARD.—The term ‘‘Governing 

2 Board’’ means the governing board established by 

3 the Streamlined Sales and Use Tax Agreement. 

4 (3) MEMBER STATE.—The term ‘‘Member 

5 State’’— 

6 (A) means a Member State as that term is 

7 used under the Streamlined Sales and Use Tax 

8 Agreement as of the date of enactment of this 

9 Act; 

10 (B) does not include associate members 

11 under the Agreement; and 

12 (C) includes any federally recognized In13 dian Tribe that is accorded Member State sta14 tus under the Agreement pursuant to section 5. 

15 (4) NATIONWIDE.—The term ‘‘nationwide’’ 

16 means throughout each of the several States and the 

17 District of Columbia, the Commonwealth of Puerto 

18 Rico, Guam, American Samoa, the Virgin Islands, 

19 the Northern Mariana Islands, and any other terri20 tory or possession of the United States. 

21 (5) NONDISCRETIONARY DUTY OF THE GOV22 ERNING BOARD.—The phrase ‘‘nondiscretionary 

23 duty of the Governing Board’’ means any duty of 

24 the Governing Board specified in the Agreement as 


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1 a requirement for action by use of the term ‘‘shall’’, 

2 ‘‘will’’, or ‘‘is required to’’. 

3 (6) PERSON.—The term ‘‘person’’ means an in4 dividual, trust, estate, fiduciary, partnership, cor5 poration, federally recognized Indian Tribe or Tribal 

6 government, State or local government, or any other 

7 legal entity. 

8 (7) REMOTE SALE.—The term ‘‘remote sale’’ 

9 refers to a sale of goods or services attributed to a 

10 particular Member State with respect to which a 

11 seller does not have adequate physical presence to 

12 establish nexus under the law existing on the day be13 fore the date of enactment of this Act so as to allow 

14 such Member State to require, without regard to the 

15 authority granted by this Act, the seller to collect 

16 and remit sales or use taxes with respect to such 

17 sale. 

18 (8) REMOTE SELLER.—The term ‘‘remote sell19 er’’ means any seller who makes a remote sale. 

20 (9) STATE.—The term ‘‘State’’ means any 

21 State of the United States of America and includes 

22 the District of Columbia, Puerto Rico, and any other 

23 territory or possession of the United States. 

24 (10) STREAMLINED SALES AND USE TAX

25 AGREEMENT.—The term ‘‘Streamlined Sales and 


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1 Use Tax Agreement’’ (or ‘‘the Agreement’’) means 

2 the multistate agreement with that title adopted on 

3 November 12, 2002, as amended through the date of 

4 enactment of this Act and unless the context other5 wise indicates as further amended from time to time. 

6 (11) TAX ON TELECOMMUNICATIONS SERV7 ICES.—The term ‘‘tax on telecommunications serv8 ices’’ or ‘‘taxes on telecommunication services’’ shall 

9 encompass the same taxes, charges, or fees as are 

10 included in section 116 of title 4, United States 

11 Code, except that ‘‘telecommunication services’’ shall 

12 replace ‘‘mobile telecommunications services’’ when13 ever such term appears. 

14 (12) TELECOMMUNICATIONS SERVICE.— 

15 (A) IN GENERAL.—The term ‘‘tele16 communications service’’ means the electronic 

17 transmission, conveyance, or routing of voice, 

18 data, audio, video, or any other information or 

19 signals to a point, or between or among points. 

20 (B) INCLUSION.—The term ‘‘telecommuni21 cation service’’— 

22 (i) includes transmission services in 

23 which computer processing applications are 

24 used to act on the form, code, or protocol 

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1 mission, conveyance, or routing without re2 gard to whether such services are referred 

3 to as voice over Internet protocol services 

4 or are classified by the Federal Commu5 nications Commission as enhanced or value 

6 added services; and 

7 (ii) does not include the data proc8 essing and information services that allow 

9 data to be generated, acquired, stored, 

10 processed, or retrieved and delivered by an 

11 electronic transmission to a purchaser 

12 where the primary purpose of such pur13 chaser for the underlying transaction is the 

14 processed data or information. 

15 SEC. 11. SENSE OF THE CONGRESS ON DIGITAL GOODS AND 

16 SERVICES. 

17 It is the sense of the Congress that each State that 

18 is a party to the Agreement should work with other States 

19 that are also party to the Agreement to prevent double 

20 taxation in situations where a foreign country has imposed 

21 a transaction tax on a digital good or service. 

Æ 


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