By Larry Jones
July 16, 2007

Oklahoma City Mayor Mick Cornett told mayors attending the June 23 Urban Economic Policy Committee meeting that extending the Internet Tax Freedom Act and getting mayors prepared for the 2010 census are two of the committee’s top priorities in 2007. He explained that Senators Thomas Carper (DE) and Lamar Alexander (TN) introduced legislation last May that would extend the Internet Tax Freedom Act for four years in a manner that’s favorable to state and local governments. He also mentioned that the U.S. Census Bureau has redesigned the census to improve the accuracy of the next census count and provide more up-to-date data. He welcomed Jonathan Jones and Renee Jefferson-Copeland who spoke to the group on these issues.

Jones, former chief of staff for Carper, told mayors that he worked with Senator Carper the last two times the Internet tax legislation was reauthorized. The last time around in 2004, Carper and Alexander championed the cause for state and local governments by sponsoring legislation to extend the act for three years. Although their bill did not get adopted, it was the baseline for negotiations on a final compromise which protected the interest of state and local governments. Jones explained that the new Carper-Alexander bill, S. 1453, has been carefully crafted to again protect the interest of state and local governments. It calls for a four-year extension of the act, clarifying the definition of internet access, and extending the grandfather clause to protect state and local revenues derived from taxes on Internet access fees prior to October 1998, when the original bill was enacted.

While the Conference and other state and local groups are seeking a temporary extension, Jones told mayors that Senators Ron Wyden (OR), John McCain (AZ) and John Sununu (NH) introduced legislation, S. 156, in January that would make the Internet Tax Freedom Act permanent. He said Carper and Alexander agree with state and local groups that too many technological and market changes are occurring, which would make it unreasonable to enact permanent legislation at this time. The good news, he explained, is during the Senate Commerce Committee hearing last May, Chairman Senator Daniel Inouye (HI) acknowledged that due to the many changes and uncertainties in the market, he is not in favor of moving a permanent bill. Jones said the Carper-Alexander bill has strong bi-partisan support and predicted that if mayors and other state and local leaders urged their Senators to support it, there is a good chance it could be enacted.

Rene Jefferson-Copeland, acting chief of the Customer Liaison Office of the U.S. Census Bureau, provided mayors an update on the status of the U.S. Census Bureau’s preparation for 2010 census. She told mayors that the census has been redesigned with a number of improvements: the short form has been further cut, the American Community Survey has replaced the long form and will provide mayors and other leaders up-to-date information on an annual basis instead of every ten years, census enumerators will use handheld computers, and the Local Update of Census Addresses (LUCA) program will provide mayors the opportunity to help develop the address list that will be used to conduct the census.

She said the Bureau is on schedule and will be prepared to conduct the 2010 census in April 2010. Advance notice has been sent out to all mayors inviting them to participate in the LUCA program to help develop the census address list. The Bureau is also in the process of preparing for a census dress rehearsal in 2008 to test the programs and new technology designed to improve the census count. The rehearsal will be conducted in two sites: San Joaquin County (CA) and Fayetteville (NC) along with the surrounding nine counties. During the rehearsal, census workers will check address lists, deliver questionnaires, conduct an April 1 Census count, and conduct nonresponse followup. Jefferson-Copeland also urged mayors to establish full count committees and involve all segments of the community in efforts to encourage everyone to be counted in the 2010 census.

Members of the committee discussed and approved the following resolutions during the June 23 meeting:

• Urging Support for a Temporary Extension of the Internet Tax Freedom Act

• Urging the Repeal of the Local Government Withholding Provisions (Section 511) in the Tax Increase Prevention and Reconciliation Act of 2005

• Increasing the Federal Role in the Assessment, Development and Financing of Critical National Infrastructure

• Formation of a Federal Tax Policy for Energy Independence, Clean Technology Development and Climate Protection

• Urging Support for the Preserve America Act of 2007

• Funding the 2010 Census

• Using the Tax Code to Help Low-Income Families Develop Assets

• Reauthorizing the New Market Tax Credit Program

• Urging Support for the Dollar Wise Program

• Revising the Federal Definition of Poverty

• Supporting Filipino Veterans Equity Act of

• Providing Comparable Incentive for the Development of Renewable Energy by Public Entities

• Commending Congress and the President for Passing Legislation Increasing the Minimum Wage

• Increase Working Families’ Financial Literacy and Access to Banking Services