Texas official appeals to senators to defeat S. 150.

As a member of the City Council of Piano, Texas, I write to ask that you oppose S. 150 (Internet Tax Non-Discrimination Act) and support S. 2084 (Internet Access Tax Ban Extension and Improvement Act) as a substitute bill. I understand that S. 150 will be on the floor for a final vote shortly.

S. 150 will deprive Piano of up to $4.8 million of revenue that it currently derives from gross tax receipts, right-of-way fees and other existing taxes on telecommunications services. It also preempts local taxing authority by EXPANDING the definition of "Internet access" to include telecom services, such as DSL and cable modem, and exempting same from all state and local telephone and utility taxes. In part, Piano must continue to provide right-of-way but will no longer receive rent for its use.

S. 2084, on the other hand, CONTINUES to allow local governments to tax telecom and right-of-way, and extends for two years the existing moratorium on imposition of new telecom taxes. This provides Congress with time to evaluate tax policy for this rapidly changing industry.

Internet access provides a vital service to the citizens of Piano, especially its many home-based businesses. The telecommunications industry also provides jobs for many Piano citizens. I am vitally interested in seeing the telecom industry recover from its slump and prosper going forward. In my opinion, changing the tax structure is not a required ingredient for the industry to regain its footing, but will severely hurt local governments.

It is my understanding that you are supportive of S. 2084 as an alternative to S. 150. In that case, let me thank you in advance for your favorable consideration of my comments and your vote.

Sincerely, Shep Stahel Deputy Mayor Pro-Tern City of Piano

This letter was sent to U.S. Sens. Kay Bailey Hutchinson (R-Tex.) and John Cornyn (R-Tex.) last week. Shep Stahel also serves on the board of directors of the National League of Cities and is treasurer of the Collin County Republican Party.