Mayor of Dallas Sends Letter to Senator Kay Bailey Hutchison
to express concerns about HR 49/S 150

September 26, 2003

The Honorable Kay Bailey Hutchison
United States Senate
Washington DC 20510

Dear Senator Hutchison:

I would like to convey my concerns over the current draft of S 150, the "Internet Tax Non-Discrimination Act" that is before the Senate. The companion bill, HR 49, passed the House last week.

Because the language of HR 49, as reported to the Senate, and S 150 could be interpreted to exempt all telecommunications providers from local government taxes, including franchise fees for cable and telephone (because they provide access to the Internet), I am greatly concerned how the potential huge loss of revenue could impact Dallas during a time when costs have increased and revenues have decreased.

If the proposed legislation is interpreted broadly enough to affect the collection of access line fees, license fees for telecommunication companies and cable franchise fees, the City of Dallas alone stands to lose more than $44 million per year. This is in addition to lost revenues from sales taxes collected by the state on behalf of Texas cities on Internet Service Provider charges (Internet access) specifically and on telecommunication services generally.

Therefore, I am writing to ask for your help in order to preserve cities' historical right to collect fees for use of the rights-of-way and to protect existing revenue streams that make possible the services we provide our citizens and your constituents. You have been our champion on this and other telecommunication issues. We desperately need your leadership again. Since our FY 2003-04 budget has already been adopted, the City Council can only absorb such revenue losses through reduced services to the citizens of Dallas.

Thank you for your consideration of this matter. Please let me know if I can help in any way.

Sincerely,

Laura Miller
Mayor

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