that does not involve any additional charges or con-
tinued payment in order to maintain possession of 
the digital good or access to or usage of the digital 
service, audio or video programming service, or VoIP 
service. 
(16) STATE.—The term ‘‘State’’ means— 
(A) any of the several States, the District 
of Columbia, or any territory or possession of 
the United States; and 
(B) any governmental entity or person act-
ing on behalf of an entity described in subpara-
graph (A) and with the authority to assess, im-
pose, levy, or collect taxes. 
(17) TAX.— 
(A) IN GENERAL.—The term ‘‘tax’’ means 
any charge imposed by any State or local juris-
diction for the purpose of generating revenues 
for governmental purposes, including any tax, 
charge, or fee levied as a fixed charge or meas-
ured by gross amounts charged, regardless of 
whether such tax, charge, or fee is imposed on 
the seller or the customer and regardless of the 
terminology used to describe the tax, charge, or 
fee. 
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(B) EXCLUSIONS.—The term ‘‘tax’’ does 
not include an ad valorem tax, a tax on or 
measured by capital, a tax on or measured by 
net income, apportioned gross income, appor-
tioned revenue, apportioned taxable margin, or 
apportioned gross receipts, or a State or local 
jurisdiction business and occupation tax im-
posed on a broad range of business activity in 
a State that enacted a State tax on gross re-
ceipts after January 1, 1932, and before Janu-
ary 1, 1936. 
(18) VOIP SERVICE.—The term ‘‘VoIP service’’ 
means any interconnected VoIP service, as defined 
in section 9.3 of title 47, Code of Federal Regula-
tions, or any successor technology. 
SEC. 8. EFFECTIVE DATE; APPLICATION. 
(a) GENERAL RULE.—This Act shall take effect 60 
days after the date of enactment of this Act. 
(b) EXCEPTIONS.—A State or local jurisdiction shall 
have 2 years from the date of enactment of this Act to 
modify any State or local tax statute enacted prior to the 
date of enactment of this Act to conform to the provisions 
set forth in sections 4 and 5 of this Act. 
(c) APPLICATION
TO LIABILITIES
AND PENDING 
CASES.—Nothing in this Act shall affect liability for taxes 
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accrued and enforced before the effective date of this Act 
or affect ongoing litigation relating to such taxes. 
SEC. 9. SAVINGS PROVISION. 
If any provision or part of this Act is held to be in-
valid or unenforceable by a court of competent jurisdiction 
for any reason, such holding shall not affect the validity 
or enforceability of any other provision or part of this Act 
unless such holding substantially limits or impairs the es-
sential elements of this Act, in which case this Act shall 
be deemed invalid and of no legal effect as of the date 
that the judgment on such holding is final and no longer 
subject to appeal. 
Æ 
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