(1) BIT TAX.—The term ‘‘bit tax’’ means any tax
on electronic commerce expressly imposed on or meas-
ured by the volume of digital information transmitted
electronically, or the volume of digital information
per unit of time transmitted electronically, but does
not include taxes imposed on the provision of tele-
communications services.
(2) COMPUTER
SERVER.—The term ‘‘computer
server’’ means a computer that functions as a central-
ized provider of information and services to multiple
recipients.
(3) DISCRIMINATORY TAX.—The term ‘‘discrimi-
natory tax’’ means—
(A) any tax imposed by a State or political
subdivision 
thereof 
on 
electronic 
commerce
that—
(i) is not generally imposed and legally
collectible by such State or such political
subdivision on transactions involving simi-
lar property, goods, services, or information
accomplished through other means;
(ii) is not generally imposed and le-
gally collectible at the same rate by such
State or such political subdivision on trans-
actions involving similar property, goods,
services, 
or 
information 
accomplished
through other means;
(iii) imposes an obligation to collect or
pay the tax on a different person or entity
than in the case of transactions involving
similar property, goods, services, or infor-
mation accomplished through other means;
or
(iv) establishes a classification of Inter-
net access provider or online service pro-
vider for purposes of establishing a higher
tax rate to be imposed on such providers
than the tax rate generally applied to pro-
viders of similar information services deliv-
ered through other means; or
(B) any tax imposed by a State or political
subdivision thereof, if—
(i) the use of a computer server by a
remote seller to create or maintain a site on
the Internet is considered a factor in deter-
mining a remote seller’s tax collection obli-
gation; or
(ii) a provider of Internet access or on-
line services is deemed to be the agent of a
remote seller for determining tax collection
obligations as a result of—
(I) the provider displaying a re-
mote seller’s information or content on
such provider’s computer server; or
(II) the provider maintaining or
taking orders through such provider’s
computer server.
(4) ELECTRONIC
COMMERCE.—The term ‘‘elec-
tronic commerce’’ means any transaction conducted
over the Internet or an online service, comprising the
sale, lease, license, offer, or delivery of property,
goods, services, or information, whether or not for
consideration, and includes the provision of Internet
access and online services.
(5) INFORMATION SERVICES.—The term ‘‘infor-
mation services’’ has the meaning given such term in
section 3(20) of the Communications Act of 1934 (47
U.S.C. 3(20)).
(6) INTERNET.—The term ‘‘Internet’’ means the
combination of computer facilities and electro-
magnetic transmission media, and related equipment
and software, comprising the interconnected world-
wide network of computer networks that employ the
Transmission Control Protocol/Internet Protocol, or
any predecessor or successor protocol, to transmit in-
formation.
(7) INTERNET ACCESS.—The term ‘‘Internet ac-
cess’’ means a service that enable users to access con-
tent, information, and other services offered over the
Internet, but does not mean a telecommunications
service.
(8) MULTIPLE TAX.—The term ‘‘multiple tax’’
means—
(A) any tax that is imposed by one State or
political subdivision thereof on the same or es-
sentially the same electronic commerce that is
also taxed by any other State or political sub-
division thereof (or the same State, except in the
case of sales taxes) whether or not at the same
rate or on the same basis without an offsetting
credit for taxes paid in other jurisdictions or
other similar mechanisms for avoiding double
taxation of the same transaction; or
(B) any tax on Internet access or online
services if the State or political subdivision
thereof classifies such services as telecommuni-
cations or communications services under State
law and such State or political subdivision
thereof has already imposed a tax on the under-
lying telecommunications services that are used
to provide such services without allowing a cred-
it for other taxes paid, a sale for resale exemp-
tion, or other mechanism for eliminating dupli-
cate taxation.
(9) ONLINE SERVICE.—The term ‘‘online service’’
means the offering or provision of information serv-
ices combined with Internet access to a user.
(10) REMOTE SELLER.—The term ‘‘remote sell-
er’’ means a person who sells, leases, licenses, offers,
or delivers property, goods, services, or information
from one State to a purchaser in another State using
the Internet.
(11) STATE.—The term ‘‘State’’ means any of
the several States, the District of Columbia, or any
territory or possession of the United States.
(12) TAX.—The term ‘‘tax’’ means—
(A) any levy, fee, or charge imposed under
governmental authority by any governmental en-
tity; or
(B) the imposition of or obligation to collect
and to remit to a governmental entity any such
levy, fee, or charge imposed by a governmental
entity.
Such term does not include any franchise fees or
similar fees imposed by a State or local franchising
authority, pursuant to section 622 or 653 of the Com-
munications Act of 1934 (47 U.S.C. 542, 573).
(13) 
TELECOMMUNICATIONS
SERVICES.—The
term ‘‘telecommunications services’’ has the meaning
given such term in section 3(46) of the Communica-
tions Act of 1934 (47 U.S.C. 3(46)).
SEC. 11. NO EXPANSION OF TAX AUTHORITY.
Nothing in this Act shall be construed to expand the
power of any State or political subdivision thereof to collect
taxes on Internet access, online services, bits, or electronic
commerce beyond the power that existed on March 1, 1998.
SEC. 12. PRESERVATION OF AUTHORITY.
Nothing in this Act shall limit or otherwise affect the
implementation of the Telecommunications Act of 1996
(Public Law 104–104) or the amendments made by such
Act.