II
Calendar No. 662
106TH CONGRESS
2D SESSION
H. R. 3916
[Report No. 106–328]
IN THE SENATE OF THE UNITED STATES
MAY 25, 2000
Received; read twice and referred to the Committee on Finance
JULY 5, 2000
Reported under authority of the order of the Senate of June 30, 2000, by
Mr. ROTH, with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
AN ACT
To amend the Internal Revenue Code of 1986 to repeal
the excise tax on telephone and other communication services.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. REPEAL OF FEDERAL COMMUNICATIONS EX-
CISE TAX.
(a) IN GENERAL.—Chapter 33 of the Internal Rev-
enue Code of 1986 (relating to facilities and services) is
amended by striking subchapter B.
(b) PHASE-OUT OF TAX.—Paragraph (2) of section
4251(b) of such Code (defining applicable percentage) is
amended to read as follows:
‘‘(2)
APPLICABLE
PERCENTAGE.—The
term
‘applicable percentage’ means—
‘‘(A) 2 percent with respect to amounts
paid pursuant to bills first rendered on or after
the 30th day after the date of the enactment of
this subparagraph and before October 1, 2001,
and
‘‘(B) 1 percent with respect to amounts
paid pursuant to bills first rendered after Sep-
tember 30, 2001, and before October 1, 2002.’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 4293 of such Code is amended by
striking ‘‘chapter 32 (other than the taxes imposed
by sections 4064 and 4121) and subchapter B of
chapter 33,’’ and inserting ‘‘and chapter 32 (other
than
the
taxes
imposed
by
sections
4064
and
4121),’’.
(2)(A) Paragraph (1) of section 6302(e) of such
Code is amended by striking ‘‘section 4251 or’’.
(B) Paragraph (2) of section 6302(e) of such
Code is amended—
(i) by striking ‘‘imposed by—’’ and all that
follows through ‘‘with respect to’’ and inserting
‘‘imposed by section 4261 or 4271 with respect
to’’, and
(ii) by striking ‘‘bills rendered or’’.
(C) The subsection heading for section 6302(e)
of such Code is amended by striking ‘‘COMMUNICA-
TIONS SERVICES AND’’.
(3) Section 6415 of such Code is amended by
striking ‘‘4251, 4261, or 4271’’ each place it ap-
pears and inserting ‘‘4261 or 4271’’.
(4) Paragraph (2) of section 7871(a) of such
Code is amended by inserting ‘‘or’’ at the end of
subparagraph (B), by striking subparagraph (C),
and by redesignating subparagraph (D) as subpara-
graph (C).
(5) The table of subchapters for chapter 33 of
such Code is amended by striking the item relating
to subchapter B.
(d) EFFECTIVE DATES.—
(1) REPEAL.—The amendments made by sub-
sections (a) and (c) shall apply to amounts paid pur-
suant to bills first rendered after September 30,
2002.
(2) PHASE-OUT.—The
amendment
made by
subsection (b) shall apply to amounts paid pursuant
to bills first rendered on or after the 30th day after
the date of the enactment of this Act.
SECTION 1. REPEAL OF EXCISE TAX ON TELEPHONE AND
OTHER COMMUNICATIONS SERVICES.
(a) IN GENERAL.—Chapter 33 of the Internal Revenue
Code of 1986 (relating to facilities and services) is amended
by striking subchapter B.
(b) CONFORMING AMENDMENTS.—
(1) Section 4293 of such Code is amended by
striking ‘‘chapter 32 (other than the taxes imposed by
sections 4064 and 4121) and subchapter B of chapter
33,’’ and inserting ‘‘and chapter 32 (other than the
taxes imposed by sections 4064 and 4121),’’.
(2)(A) Paragraph (1) of section 6302(e) of such
Code is amended by striking ‘‘section 4251 or’’.
(B) Paragraph (2) of section 6302(e) of such
Code is amended by striking ‘‘imposed by—’’ and all
that follows through ‘‘with respect to’’ and inserting
‘‘imposed by section 4261 or 4271 with respect to’’.
(C) The subsection heading for section 6302(e) of
such Code is amended by striking ‘‘COMMUNICATIONS
SERVICES AND’’.
(3) Section 6415 of such Code is amended by
striking ‘‘4251, 4261, or 4271’’ each place it appears
and inserting ‘‘4261 or 4271’’.
(4) Paragraph (2) of section 7871(a) of such
Code is amended by inserting ‘‘or’’ at the end of sub-
paragraph (B), by striking subparagraph (C), and by
redesignating subparagraph (D) as subparagraph (C).
(5) The table of subchapters for chapter 33 of
such Code is amended by striking the item relating to
subchapter B.
(c) STUDY REGARDING CONTINUING ECONOMIC BEN-
EFIT OF REPEAL.—
(1) STUDY.—The Comptroller General of the
United States, after consultation with the Chairman
of the Federal Communications Commission, shall
study and identify—
(A) the extent to which the benefits of the re-
peal of the excise tax on telephone and other
communication services under subsection (a) are
passed through to individual and business con-
sumers, and
(B) any actions taken by communication
service providers or others that diminish such
benefits, including increases in any regulated or
unregulated communication service provider
charges or increases in other Federal or State
fees or taxes related to such service occurring
since the date of such repeal.
(2) REPORT.—By not later than September 1,
2001, the Comptroller General of the United States
shall submit a report regarding the study described in
paragraph (1) to the Committee on Ways and Means
of the House of Representatives and the Committee on
Finance of the Senate.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply to amounts paid pursuant to bills first
rendered after August 31, 2000.
Calendar No. 662
106TH CONGRESS
2D SESSION
H. R. 3916
[Report No. 106–328]
AN ACT
To amend the Internal Revenue Code of 1986 to
repeal the excise tax on telephone and other com-
munication services.
JULY 5, 2000
Reported with an amendment