Union Calendar No. 346
106TH CONGRESS
2D SESSION
H. R. 3916
[Report No. 106–631]
A BILL
To amend the Internal Revenue Code of 1986 to
repeal the excise tax on telephone and other com-
munication services.
MAY 22, 2000
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union,
and ordered to be printed
IB
Union Calendar No. 346
106TH CONGRESS
2D SESSION
H. R. 3916
[Report No. 106–631]
To amend the Internal Revenue Code of 1986 to repeal the excise tax
on telephone and other communication services.
IN THE HOUSE OF REPRESENTATIVES
MARCH 14, 2000
Mr. PORTMAN (for himself, Mr. MATSUI, Mr. DREIER, Mr. FROST, Mr.
WATTS of Oklahoma, Mr. CARDIN, Mr. MCCRERY, Mr. BECERRA, Ms.
DUNN, Ms. LOFGREN, Mr. GARY MILLER of California, Mr. SMITH of
Washington, Mr. MCINNIS, Mr. SNYDER, Mr. TERRY, and Mr. BENTSEN)
introduced the following bill; which was referred to the Committee on
Ways and Means
MAY 22, 2000
Additional sponsors: Mrs. EMERSON, Mr. COX, Mr. DAVIS of Virginia, Mr.
BOEHNER, Mr. BOUCHER, Mr. THOMAS, Mr. SHAYS, Mr. JONES of North
Carolina, Mr. WELDON of Florida, Ms. MCCARTHY of Missouri, Mr.
NUSSLE, Mr. HAYWORTH, Mr. SALMON, Mr. ARMEY, Mr. MCDERMOTT,
Mr. EHRLICH, Mr. WATKINS, Mr. HOBSON, Mr. FOLEY, Mr. RAMSTAD,
Mrs. JOHNSON of Connecticut, Mrs. MYRICK, Mr. SAM JOHNSON of
Texas, Mr. BLUNT, Mr. KENNEDY of Rhode Island, Mr. FOSSELLA, Ms.
BERKLEY, Mr. , Mr. PASTOR, Mr. STEARNS, Mr. ISTOOK, Mr. COLLINS,
Mr. HERGER, Mr. DEAL of Georgia, Mr. MANZULLO, Mr. OXLEY, Mr.
BARTON of Texas, Mr. HALL of Texas, Mr. BAKER, Mr. CUNNINGHAM,
Mr. BEREUTER, Mr. COBURN, Mrs. LEWIS of Kentucky, Mr. FRELING-
HUYSEN, Mr. CAMP, Mr. CRANE, Mr. HOUGHTON, Mr. HULSHOF, Mr.
SHAW, Mr. WELLER, Mr. JEFFERSON, Ms. DANNER, Mr. GILCHREST,
Mr. PICKERING, Mr. GILLMOR, Mr. MCKEON, Mrs. CAPPS, Mr. CHABOT,
Mr. DUNCAN, Mr. REYNOLDS, Mr. RAHALL, Mr. GORDON, Mr. GEKAS,
Mr. SMITH of New Jersey, Mr. ISAKSON, Mr. MENENDEZ, Mr. LARGENT,
Mr. MCHUGH, Mr. TANCREDO, Mr. SWEENEY, Mrs. TAUSCHER, Mrs.
THURMAN, Mr. GONZALEZ, Mr. DOOLEY of California, Mr. TURNER, Mr.
ROGAN, Mr. MEEKS of New York, Mr. FORD, Mr. KNOLLENBERG, Mr.
HUTCHINSON, Mr. GREEN of Texas, Mr. GREEN of Wisconsin, Mr. WAL-
DEN of Oregon, Mr. FRANKS of New Jersey, Mr. PALLONE, Ms. RIVERS,
Mr. LOBIONDO, Mr. FORBES, Mr. MILLER of Florida, Mr. CONDIT, Mr.
LIPINSKI, Mr. RODRIGUEZ, Mr. MORAN of Virginia, Mr. ROYCE, Mr.
GOODLATTE, Mr. GIBBONS, Mr. RUSH, Mr. POMBO, Mr. SHADEGG, Mrs.
KELLY, Mr. WHITFIELD, Mr. SUNUNU, Mr. PRICE of North Carolina,
Mr. RADANOVICH, Mr. WELDON of Pennsylvania, Mr. SPENCE, Mr. SES-
SIONS, Mrs. MCCARTHY of New York, Mr. DOOLITTLE, Mr. HOEKSTRA,
Mr. PASCRELL, Mr. ORTIZ, Mr. QUINN, Mr. DEFAZIO, Ms. SANCHEZ,
Mr. GALLEGLY, Ms. ROYBAL-ALLARD, Ms. JACKSON-LEE of Texas, Mr.
HOEFFEL, Mrs. BIGGERT, Mr. CROWLEY, Mr. EVANS, Mr. GREENWOOD,
Mr. SENSENBRENNER, Mr. BOEHLERT, Mr. CRAMER, Mr. ETHERIDGE,
Mrs. JONES of Ohio, Mr. WICKER, Mr. HILLEARY, Mr. THUNE, Mr.
WISE, Mr. FALEOMAVAEGA, Mr. BARRETT of Wisconsin, Mr. WALSH,
Mr. PICKETT, Mr. HILL of Indiana, Mr. KUYKENDALL, Mr. OSE, Mrs.
ROUKEMA, Mr. BARR of Georgia, Mr. GRAHAM, Mr. BARTLETT of Mary-
land, Mr. MORAN of Kansas, Mr. TOOMEY, Mr. GOSS, and Mr. HINOJOSA
MAY 22, 2000
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
A BILL
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 EXCISE TAX ON TELEPHONE AND
OTHER COMMUNICATIONS SERVICES.
(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) 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.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid pursuant to bills
first rendered more than 90 days after the date of the
enactment of this Act.
SECTION 1. REPEAL OF FEDERAL COMMUNICATIONS EX-
CISE TAX.
(a) IN GENERAL.—Chapter 33 of the Internal Revenue
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 ‘ap-
plicable 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 ‘‘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.
(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 sub-
section (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.