(I) means the electronic trans-
mission, conveyance, or routing of 
voice, data, audio, video, or any other 
information or signals to a point, or 
between or among points; 
(II) includes such transmission, 
conveyance, or routing in which com-
puter processing applications are used 
to act on the form, code, or protocol 
of the content for purposes of trans-
mission, conveyance, or routing, with-
out regard to whether such service is 
referred to as VoIP service; and 
(III) does not include data proc-
essing and information services that 
allow data to be generated, acquired, 
stored, processed, or retrieved and de-
livered by an electronic transmission 
to a purchaser where such purchaser’s 
primary purpose for the underlying 
transaction is the processed data or 
information. 
(9) DISCRIMINATORY TAX.— 
(A) IN GENERAL.—The term ‘‘discrimina-
tory tax’’ means any tax imposed by a State or 
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local jurisdiction on digital goods or digital 
services that— 
(i) is not generally imposed and le-
gally collectible by such State or local ju-
risdiction on transactions involving similar 
property, goods, or services accomplished 
through other means; 
(ii) is not generally imposed and le-
gally collectible at the same or higher rate 
by such State or local jurisdiction on 
transactions involving similar property, 
goods, or services accomplished through 
other means; 
(iii) imposes an obligation to collect or 
pay the tax on a person, other than the 
seller, that the State or local jurisdiction 
would not impose in the case of trans-
actions involving similar property, goods, 
or services accomplished through other 
means; 
(iv) establishes a classification of dig-
ital services or digital goods providers for 
purposes of establishing a higher tax rate 
to be imposed on such providers than the 
tax rate generally imposed on providers of 
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pamtmann on DSKBFK8HB2PROD with BILLS
similar property, goods, or services accom-
plished through other means; or 
(v) does not provide a resale and com-
ponent part exemption for the purchase of 
digital goods or digital services in a man-
ner consistent with the State’s resale and 
component part exemption applicable to 
the purchase of similar property, goods, or 
services 
accomplished 
through 
other 
means. 
(B) CLARIFICATION.—For purposes of this 
paragraph, any tax that is limited in its appli-
cation to only certain services, providers, or in-
dustries shall not be considered to be generally 
imposed, with the exception of any State tax 
which is imposed— 
(i) in lieu of a generally imposed tax; 
and 
(ii) at a rate which is not greater than 
the rate of such tax. 
(10) LOCAL JURISDICTION.— 
(A) IN GENERAL.—The term ‘‘local juris-
diction’’ means— 
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pamtmann on DSKBFK8HB2PROD with BILLS
(i) any municipality, city, county, 
township, parish, transportation district, or 
assessment jurisdiction; 
(ii) any other local jurisdiction in the 
territorial jurisdiction of the United States 
with the authority to impose a tax; and 
(iii) any governmental entity or per-
son acting on behalf of an entity described 
in clause (i) or (ii) and with the authority 
to assess, impose, levy, or collect taxes. 
(B) EXCEPTION.—The term ‘‘local juris-
diction’’ shall not include a State. 
(11) MULTIPLE TAX.— 
(A) IN
GENERAL.—The term ‘‘multiple 
tax’’ means any tax that is imposed by one 
State, one or more of that State’s local jurisdic-
tions, or both on the same or essentially the 
same covered electronic good or service that is 
also subject to tax imposed by another State, 
one or more local jurisdictions in such other 
State (whether or not at the same rate or on 
the same basis), or both, without a credit for 
taxes paid in other jurisdictions. 
(B) EXCEPTION.—The term ‘‘multiple 
tax’’ shall not include a tax imposed by a State 
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pamtmann on DSKBFK8HB2PROD with BILLS
and one or more political subdivisions thereof 
on the same covered electronic good or service 
or a tax on persons engaged in selling covered 
electronic goods or services which also may have 
been subject to a sales or use tax thereon. 
(12) PRIMARY USE LOCATION.— 
(A) IN GENERAL.—The term ‘‘primary use 
location’’ means a street address representative 
of where the customer’s use of a covered elec-
tronic good or service will primarily occur, 
which shall be the residential street address or 
a business street address of the actual end user 
of the covered electronic good or service, includ-
ing, if applicable, the address of a donee of the 
customer that is designated by the customer. 
(B) CUSTOMERS THAT ARE NOT INDIVID-
UALS.—For the purpose of subparagraph (A), if 
the customer is not an individual, the primary 
use location is determined by the location of the 
customer’s employees or equipment (machine or 
device) that make use of the covered electronic 
good or service, but does not include the loca-
tion of a person who uses the covered electronic 
good or service as the purchaser of a separate 
good or service from the customer. 
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pamtmann on DSKBFK8HB2PROD with BILLS
(13) SALE AND PURCHASE.—The terms ‘‘sale’’ 
and ‘‘purchase’’, and all variations thereof, shall in-
clude the provision, lease, rent, license, and cor-
responding variations thereof. 
(14) SELLER.— 
(A) IN
GENERAL.—The term ‘‘seller’’ 
means a person making sales of covered elec-
tronic goods or services. 
(B) EXCEPTIONS.—A person that provides 
billing service or electronic delivery or transport 
service on behalf of another unrelated or unaf-
filiated person, with respect to the other per-
son’s sale of a covered electronic good or serv-
ice, shall not be treated as a seller of that cov-
ered electronic good or service. 
(C) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall preclude the person pro-
viding the billing service or electronic delivery 
or transport service from entering into a con-
tract with the seller to assume the tax collection 
and remittance responsibilities of the seller. 
(15) 
SEPARATE
AND
DISCRETE
TRANS-
ACTION.—The term ‘‘separate and discrete trans-
action’’ means a sale of a covered electronic good or 
service or digital code sold in a single transaction 
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