Wireless Tax Fairness Act of 2015

To restrict any State or local jurisdiction from imposing a new discriminatory tax on cell phone services, providers, or property. 1. Short title This Act may be cited as the Wireless Tax Fairness Act of 2015 2. Findings Congress finds the following: (1) It is appropriate to exercise congressional enforcement authority under section 5 of the 14th Amendment to the Constitution of the United States and Congress’ plenary power under article I, section 8, clause 3 of the Constitution of the United States (commonly known as the commerce clause (2) In light of the history and pattern of discriminatory taxation faced by providers and consumers of mobile services, the prohibitions against and remedies to correct discriminatory State and local taxation in section 306 of the Railroad Revitalization and Regulatory Reform Act of 1976 ( 49 U.S.C. 11501 3. Moratorium (a) In general No State or local jurisdiction shall impose a new discriminatory tax on or with respect to mobile services, mobile service providers, or mobile service property, during the 5-year period beginning on the date of enactment of this Act. (b) Definitions In this Act: (1) Mobile service The term mobile service (2) Mobile service property The term mobile service property (3) Mobile service provider The term mobile service provider (4) New discriminatory tax The term new discriminatory tax (A) a mobile service and is not generally imposed, or is generally imposed at a lower rate, on or with respect to, or measured by, the charges, receipts, or revenues from other services or transactions involving tangible personal property; (B) a mobile service provider and is not generally imposed, or is generally imposed at a lower rate, on other persons that are engaged in businesses other than the provision of mobile services; or (C) a mobile service property and is not generally imposed, or is generally imposed at a lower rate, on or with respect to, or measured by the value of, other property that is devoted to a commercial or industrial use and subject to a property tax levy, except public utility property owned by a public utility subject to rate of return regulation by a State or Federal regulatory authority; unless such tax was imposed and actually enforced on mobile services, mobile service providers, or mobile service property prior to the date of enactment of this Act. (5) State or local jurisdiction The term State or local jurisdiction (6) Tax (A) In general The term tax (B) Exclusion The term tax (i) used to preserve and advance Federal universal service or similar State programs authorized by section 254 of the Communications Act of 1934 ( 47 U.S.C. 254 (ii) specifically dedicated by a State or local jurisdiction for the support of E–911 communications systems; or (iii) used to preserve and advance Federal telecommunications relay services or State programs implementing this Federal mandate pursuant to title IV of the Americans with Disabilities Act of 1990 ( Public Law 101–336 47 U.S.C. 225 (c) Rules of construction (1) Determination For purposes of subsection (b)(4), all taxes, tax rates, exemptions, deductions, credits, incentives, exclusions, and other similar factors shall be taken into account in determining whether a tax is a new discriminatory tax. (2) Application of principles Except as otherwise provided in this Act, in determining whether a tax on mobile service property is a new discriminatory tax for purposes of subsection (b)(4)(C), principles similar to those set forth in section 306 of the Railroad Revitalization and Regulatory Reform Act of 1976 ( 49 U.S.C. 11501 (3) Exclusions Notwithstanding any other provision of this Act— (A) the term generally imposed (i) specific services; (ii) specific industries or business segments; or (iii) specific types of property; and (B) the term new discriminatory tax (i) (I) replaces one or more taxes that had been imposed on mobile services, mobile service providers, or mobile service property; and (II) is designed so that, based on information available at the time of the enactment of such new tax or such modification, the amount of tax revenues generated thereby with respect to such mobile services, mobile service providers, or mobile service property is reasonably expected to not exceed the amount of tax revenues that would have been generated by the respective replaced tax or taxes with respect to such mobile services, mobile service providers, or mobile service property; or (ii) is a local jurisdiction tax that may not be imposed without voter approval, provides for at least 90 days’ prior notice to mobile service providers, and is required by law to be collected from mobile service customers. 4. Enforcement Notwithstanding any provision of section 1341 of title 28, United States Code, or the constitution or laws of any State, the district courts of the United States shall have jurisdiction, without regard to amount in controversy or citizenship of the parties, to grant such mandatory or prohibitive injunctive relief, interim equitable relief, and declaratory judgments as may be necessary to prevent, restrain, or terminate any acts in violation of this Act. (1) Jurisdiction Such jurisdiction shall not be exclusive of the jurisdiction which any Federal or State court may have in the absence of this section. (2) Burden of proof The burden of proof in any proceeding brought under this Act shall be upon the party seeking relief and shall be by a preponderance of the evidence on all issues of fact. (3) Relief In granting relief against a tax which is discriminatory or excessive under this Act with respect to tax rate or amount only, the court shall prevent, restrain, or terminate the imposition, levy, or collection of not more than the discriminatory or excessive portion of the tax as determined by the court. 5. GAO study (a) Study The Comptroller General of the United States shall conduct a study, throughout the 5-year period beginning on the date of the enactment of this Act, to determine— (1) how, and the extent to which, taxes imposed by local and State jurisdictions on mobile services, mobile service providers, or mobile property, impact the costs consumers pay for mobile services; and (2) the extent to which the moratorium on discriminatory mobile services taxes established in this Act has any impact on the costs consumers pay for mobile services. (b) Report Not later than 6 years after the date of the enactment of this Act, the Comptroller General shall submit, to the Committee on the Judiciary of the House of Representatives and the Committee on the Judiciary of the Senate, a report containing the results of the study required under subsection (a) and shall include in such report recommendations for any changes to laws and regulations relating to such results.

Summary: Wireless Tax Fairness Act of 2015 This bill prohibits states or local governments from imposing any new discriminatory tax on or with respect to mobile services, mobile service providers, or mobile service property for five years after the enactment of this Act. A "new discriminatory tax" is a tax imposed on mobile services, providers, or property that is not generally imposed on other types of services or property, or that is generally imposed at a lower rate, unless such tax was imposed and actually enforced prior to the enactment date of this Act. The bill grants jurisdiction to federal district courts to provide injunctive and other appropriate relief to prevent, restrain, or terminate any acts in violation of this Act. The bill requires the Government Accountability Office to study and report on the impact of: (1) state and local taxes on mobile services, providers, or property on the costs consumers pay for mobile services; and (2) the prohibition in this Act against discriminatory mobile services taxes on such costs.