Sample Letter Urging Senators to Support a Simple Extension of Current Law

Date

Honorable
United States Senate
Washington, D.C. 20510

RE: Opposition to S. 150

Dear [Senator]:

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Local governments urge you to oppose S. 150 because it unnecessarily expands the recently expired moratorium on Internet access taxes to include certain telecommunications services. The Multistate Tax Commission estimates that this expansion will cost state and local governments $4 to $8.75 billion annually. We estimate that the state of __________ and its local governments could lose up to ______ million annually in state and local tax revenue.

As you know, __________ has some of lowest utility taxes of any state. And like other states, we are facing a severe budget crisis. Congress should not be prohibiting state and local governments from requiring Internet and telecommunications service providers to pay the same state and local taxes that any other business in the state pays for the privilege of doing business in our communities. On behalf of the local governments responsible for delivering the bulk of services to __________ residents, we urge you to not take any action that that would strip away our existing tax authority and create a multi-billion dollar unfunded mandate.

State and local governments are not opposed to a temporary extension of the moratorium that expired November 1, 2003. We are opposed to any expansion or permanentization of the moratorium and the proposed “fixes” to the amended S. 150 do not take care of problems identified by state and local governments. Our best estimates are that the proposed changes would still cost state and local governments $2 to $4 billion annually. Because of the cost and uncertainty associated with both S. 150 and the proposed Managers’ amendment, __________ local governments join all the organizations of state and local elected officials – National Governors Association, National League of Cities, United States Conference of Mayors, National Association of Counties, International County and City Managers Association, National Association of Telecommunications Officers and Advisors, and TeleCommUnity – in pushing for a simple extension of current law until industry, Congress and state and local government groups can produce language that is thoughtful and fiscally fair.

We urge you to oppose S. 150 to support an amendment on the Senate floor to change S. 150 to a simple extension of the current moratorium. In the alternative, we ask you to ensure that state and local governments are afforded the opportunity to have a full debate on this issue, so please accept no time limits on debate. No state or local government official was ever given the opportunity to debate this matter in Committee.

Sincerely,

 

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