112 STAT. 2681-719 PUBLIC LAW 105-277—OCT. 21, 1998 Internet Tax TITLE XI—MORATORIUM ON CERTAIN TAXES Freedom Act. 47 USC 151 note. SEC. 1100. SHORT TITLE. This title may be cited as the "Internet Tax Freedom Act". SEC. 1101. MORATORIUM. (a) MORATORIUM. — No State or poUtical subdivision thereof shall impose any of the following taxes during the period beginning on October 1, 1998, and ending 3 years after the date of the enactment of this Act— (1) taxes on Internet access, unless such tax was generally imposed and actually enforced prior to October 1, 1998; and (2) multiple or discriminatory taxes on electronic commerce. (b) PRESERVATION OF STATE AND LOCAL TAXING AUTHORITY.— Except as provided in this section, nothing in this title shall be construed to modify, impair, or supersede, or authorize the modification, impairment, or superseding of, any State or local law pertaining to taxation that is otherwise permissible by or under the Constitution of the United States or other Federal law and in effect on the date of enactment of this Act. (c) LIABILITIES AND PENDING CASES.— Nothing in this title affects liability for taxes accrued and enforced before the date of enactment of this Act, nor does this title affect ongoing litigation relating to such taxes. (d) DEFINITION OF GENERALLY IMPOSED AND ACTUALLY ENFORCED. —For purposes of this section, a tax has been generally imposed and actually enforced prior to October 1, 1998, if, before that date, the tax was authorized by statute and either— (1) a provider of Internet access services had a reasonable opportunity to know by virtue of a rule or other public proclamation made by the appropriate administrative agency of the State or political subdivision thereof, that such agency has interpreted and applied such tax to Internet access services; or (2) a State or political subdivision thereof generally collected such tax on charges for Internet access. (e) EXCEPTION TO MORATORIUM. — (1) IN GENERAL. —Subsection (a) shall also not apply in the case of any person or entity who knowingly and with knowledge of the character of the material, in interstate or foreign commerce by means of the World Wide Web, makes any communication for commercial purposes that is available to any minor and that includes any material that is harmful to minors unless such person or entity has restricted access by minors to material that is harmful to minors— (A) by requiring use of a credit card, debit account, adult access code, or adult personal identification number; (B) by accepting a digital certificate that verifies age; or (C) by any other reasonable measures that are feasible under available technology. (2) SCOPE OF EXCEPTION.— For purposes of paragraph (1), a person shall not be considered to making a communication for commercial purposes of material to the extent that the person is— (A) a telecommunications carrier engaged in the provision of a telecommunications service;
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