Internet Tax Freedom Act Amendments Act of 2007
PL 110-108 (H.R.3678), enacted 10/31/2007

121 STAT. 1024 
PUBLIC LAW 110–108—OCT. 31, 2007 
Public Law 110–108 
110th Congress 
An Act 
To amend the Internet Tax Freedom Act to extend the moratorium on certain 
taxes relating to the Internet and to electronic commerce. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Internet Tax Freedom Act Amend-
ments Act of 2007’’. 
SEC. 2. MORATORIUM. 
The Internet Tax Freedom Act (47 U.S.C. 151 note) is 
amended— 
(1) in section 1101(a) by striking ‘‘2007’’ and inserting 
‘‘2014’’, and 
(2) in section 1104(a)(2)(A) by striking ‘‘2007’’ and inserting 
‘‘2014’’. 
SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS. 
Section 1104 of the Internet Tax Freedom Act (47 U.S.C. 151 
note) is amended by adding at the end the following: 
‘‘(c) APPLICATION OF DEFINITION.— 
‘‘(1) IN GENERAL.—Effective as of November 1, 2003— 
‘‘(A) for purposes of subsection (a), the term ‘Internet 
access’ shall have the meaning given such term by section 
1104(5) of this Act, as enacted on October 21, 1998; and 
‘‘(B) for purposes of subsection (b), the term ‘Internet 
access’ shall have the meaning given such term by section 
1104(5) of this Act as enacted on October 21, 1998, and 
amended by section 2(c) of the Internet Tax Nondiscrimina-
tion Act (Public Law 108–435). 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply until June 
30, 2008, to a tax on Internet access that is— 
‘‘(A) generally imposed and actually enforced on tele-
communications service purchased, used, or sold by a pro-
vider of Internet access, but only if the appropriate 
administrative agency of a State or political subdivision 
thereof issued a public ruling prior to July 1, 2007, that 
applied such tax to such service in a manner that is incon-
sistent with paragraph (1); or 
‘‘(B) the subject of litigation instituted in a judicial 
court of competent jurisdiction prior to July 1, 2007, in 
which a State or political subdivision is seeking to enforce, 
in a manner that is inconsistent with paragraph (1), such 
Applicability. 
Effective date. 
Internet Tax 
Freedom Act 
Amendments Act 
of 2007. 
Communications 
and tele- 
communications. 
47 USC 609 note. 
Oct. 31, 2007 
[H.R. 3678] 
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121 STAT. 1025 
PUBLIC LAW 110–108—OCT. 31, 2007 
tax on telecommunications service purchased, used, or sold 
by a provider of Internet access. 
‘‘(3) NO INFERENCE.—No inference of legislative construc-
tion shall be drawn from this subsection or the amendments 
to section 1105(5) made by the Internet Tax Freedom Act 
Amendments Act of 2007 for any period prior to June 30, 
2008, with respect to any tax subject to the exceptions described 
in subparagraphs (A) and (B) of paragraph (2).’’. 
SEC. 4. DEFINITIONS. 
Section 1105 of the Internet Tax Freedom Act (47 U.S.C. 151 
note) is amended— 
(1) in paragraph (1) by striking ‘‘services’’, 
(2) by amending paragraph (5) to read as follows: 
‘‘(5) INTERNET ACCESS.—The term ‘Internet access’— 
‘‘(A) means a service that enables users to connect 
to the Internet to access content, information, or other 
services offered over the Internet; 
‘‘(B) includes the purchase, use or sale of telecommuni-
cations by a provider of a service described in subparagraph 
(A) to the extent such telecommunications are purchased, 
used or sold— 
‘‘(i) to provide such service; or 
‘‘(ii) to otherwise enable users to access content, 
information or other services offered over the Internet; 
‘‘(C) includes services that are incidental to the provi-
sion of the service described in subparagraph (A) when 
furnished to users as part of such service, such as a home 
page, electronic mail and instant messaging (including 
voice- and video-capable electronic mail and instant mes-
saging), video clips, and personal electronic storage 
capacity; 
‘‘(D) does not include voice, audio or video program-
ming, or other products and services (except services 
described in subparagraph (A), (B), (C), or (E)) that utilize 
Internet protocol or any successor protocol and for which 
there is a charge, regardless of whether such charge is 
separately stated or aggregated with the charge for services 
described in subparagraph (A), (B), (C), or (E); and 
‘‘(E) includes a homepage, electronic mail and instant 
messaging (including voice- and video-capable electronic 
mail and instant messaging), video clips, and personal elec-
tronic storage capacity, that are provided independently 
or not packaged with Internet access.’’; 
(3) by amending paragraph (9) to read as follows: 
‘‘(9) 
TELECOMMUNICATIONS.—The 
term 
‘telecommuni-
cations’ means ‘telecommunications’ as such term is defined 
in section 3(43) of the Communications Act of 1934 (47 U.S.C. 
153(43)) and ‘telecommunications service’ as such term is 
defined in section 3(46) of such Act (47 U.S.C. 153(46)), and 
includes communications services (as defined in section 4251 
of the Internal Revenue Code of 1986 (26 U.S.C. 4251)).’’, and 
(4) in paragraph (10) by adding at the end the following: 
‘‘(C) SPECIFIC EXCEPTION.— 
‘‘(i) SPECIFIED TAXES.—Effective November 1, 2007, 
the term ‘tax on Internet access’ also does not include 
a State tax expressly levied on commercial activity, 
Effective date. 
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121 STAT. 1026 
PUBLIC LAW 110–108—OCT. 31, 2007 
modified gross receipts, taxable margin, or gross 
income of the business, by a State law specifically 
using one of the foregoing terms, that— 
‘‘(I) was enacted after June 20, 2005, and 
before November 1, 2007 (or, in the case of a 
State business and occupation tax, was enacted 
after January 1, 1932, and before January 1, 1936); 
‘‘(II) replaced, in whole or in part, a modified 
value-added tax or a tax levied upon or measured 
by net income, capital stock, or net worth (or, 
is a State business and occupation tax that was 
enacted after January 1, 1932 and before January 
1, 1936); 
‘‘(III) is imposed on a broad range of business 
activity; and 
‘‘(IV) is not discriminatory in its application 
to providers of communication services, Internet 
access, or telecommunications. 
‘‘(ii) MODIFICATIONS.—Nothing in this subpara-
graph shall be construed as a limitation on a State’s 
ability to make modifications to a tax covered by clause 
(i) of this subparagraph after November 1, 2007, as 
long as the modifications do not substantially narrow 
the range of business activities on which the tax is 
imposed or otherwise disqualify the tax under clause 
(i). 
‘‘(iii) NO INFERENCE.—No inference of legislative 
construction shall be drawn from this subparagraph 
regarding the application of subparagraph (A) or (B) 
to any tax described in clause (i) for periods prior 
to November 1, 2007.’’. 
SEC. 5. CONFORMING AMENDMENTS. 
(a) ACCOUNTING RULE.—Section 1106 of the Internet Tax 
Freedom Act (47 U.S.C. 151 note) is amended— 
(1) by striking ‘‘telecommunications services’’ each place 
it appears and inserting ‘‘telecommunications’’, and 
(2) in subsection (b)(2)— 
(A) in the heading by striking ‘‘SERVICES’’, 
(B) by striking ‘‘such services’’ and inserting ‘‘such 
telecommunications’’, and 
(C) by inserting before the period at the end the fol-
lowing: ‘‘or to otherwise enable users to access content, 
information or other services offered over the Internet’’. 
(b) VOICE SERVICES.—The Internet Tax Freedom Act (47 U.S.C. 
151 note) is amended by striking section 1108. 
SEC. 6. SUNSET OF GRANDFATHER PROVISIONS. 
Section 1104(a) of the Internet Tax Freedom Act is amended 
by adding at the end thereof the following: 
‘‘(3) EXCEPTION.—Paragraphs (1) and (2) shall not apply 
to any State that has, more than 24 months prior to the 
date of enactment of this paragraph, enacted legislation to 
repeal the State’s taxes on Internet access or issued a rule 
or other proclamation made by the appropriate agency of the 
State that such State agency has decided to no longer apply 
such tax to Internet access.’’. 
47 USC 151 note. 
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121 STAT. 1027 
PUBLIC LAW 110–108—OCT. 31, 2007 
LEGISLATIVE HISTORY—H.R. 3678 (S. 2128): 
HOUSE REPORTS: No. 110–372 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 153 (2007): 
Oct. 16, considered and passed House. 
Oct. 25, considered and passed Senate, amended. 
Oct. 30, House concurred in Senate amendment. 
SEC. 7. EFFECTIVE DATE. 
This Act, and the amendments made by this Act, shall take 
effect on November 1, 2007, and shall apply with respect to taxes 
in effect as of such date or thereafter enacted, except as provided 
in section 1104 of the Internet Tax Freedom Act (47 U.S.C. 151 
note). 
Approved October 31, 2007. 
47 USC 151 note. 
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