WASHINGTON, D.C. — A coalition of cities and counties dedicated to preserving local governments' interests in federal telecommunications policymaking has serious reservations about S. 150, the "Internet Tax Non-Discrimination Act."

The TeleCommUnity Alliance wants Congress to understand that the industry is misrepresenting the concerns of local governments. It also wants to clarify that the industry seeks to use what was to be a simple extension of the Internet moratorium to eliminate taxes that the industry has traditionally paid.

"Local governments are not opposed to the extension of the Internet Tax moratorium. But we are opposed to S. 150, as it would expand the types of services and companies that are exempt from taxes," explained Montgomery County, Maryland, Council Member Marilyn Praisner, chair of the TeleCommUnity Alliance.

Council Member Praisner continued: "Local governments do not seek to tax e-mail, as some would have the public believe. We are concerned that S. 150 threatens local governments' existing rights to collect fair rent for the use of the public's rights-of-way and to use broad based and nondiscriminatory taxes to support local government's first responders, make local infrastructure investments and operate our schools."

Council Member Praisner also praised a floor statement made by Senator Lamar Alexander on the issue. "We believe the manner in which Senator Alexander framed the issue is the correct formulation of the question before the Senate," she said. "Senator Alexander challenged his colleagues that unless they 'want to transfer responsibilities for local schools, colleges, prisons, sate parks and roads to Washington DC ... [they have] no business telling state and local governments how they can pay the bill for legitimate services.'"

The TeleCommUnity Alliance is urging lawmakers to extend the Internet tax moratorium for 18 months, during which time TeleCommUnity pledges to work with the bill's authors to determine what, if any, additional changes to the moratorium are warranted.

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Read Senator Alexander's floor statement here.

Read more about S 150 and the local government response here.

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