HR 3916 RFS

May 25, 2000

Received; read twice and referred to the Committee on Finance

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 Representatives of the United States of America in Congress assembled,

SECTION 1. REPEAL OF FEDERAL COMMUNICATIONS EXCISE 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 `applicable 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 September 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 subparagraph (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 subsections (a) and (c) shall apply to amounts paid pursuant to bills first rendered after September 30, 2002.

(2) PHASE-OUT- The amendment made by subsection (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.

Passed the House of Representatives May 25, 2000.

Attest:

JEFF TRANDAHL,

Clerk.

END