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CTIA-The Wireless Association Statement on Digital Goods and Services Tax Fairness Act of 2011

After U.S. Senators Ron Wyden (D-OR) and John Thune (R- SD) and U.S. Representatives Lamar Smith (R-TX-21) and Steve Cohen (D-TN-9) introduced the Digital Goods and Services Tax Fairness Act of 2011 (S. 971; H.R. 1860), which would prevent unfair state and local taxes to be levied on wireless services and products purchased via the Internet with mobile devices or other Internet connections by establishing a national tax framework, I released the following statement:

“CTIA and the wireless industry appreciate the leadership of Senators Wyden and Thune and Congressmen Smith and Cohen for introducing this legislation as a way to stop the discriminatory taxes and fees on consumers who purchase items via the Internet. It makes no sense to levy additional, and sometimes hidden, state and local taxes against items that consumers purchase via the Internet and not in stores. Once passed, this legislation would provide tax administrators and consumers a better understanding of how music, books and other downloadable products should be taxed. At the same time, it would continue to encourage digital commerce to flourish and assist the nation’s economic recovery and enhance American economic competitiveness.

“We look forward to working with these sponsors and other supporters of the Digital Goods and Services Tax Fairness Act of 2011 to get this bill passed, which will provide consumers with some much needed clarity and assurances that their online purchases are not being taxed unfairly.”

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