Internet Tax Freedom Act

Internet Tax Freedom Act - Prohibits, for three years after enactment of this Act, any State or political subdivision from imposing, assessing, collecting, or attempting to collect taxes on Internet access, bit taxes, or multiple or discriminatory taxes on electronic commerce. Provides an exception for such taxes imposed by certain States and in effect on the date of enactment of this Act (requiring such States, within one year, to expressly affirm that such a tax is imposed on Internet access).

Establishes the Advisory Commission on Electronic Commerce to study State and local taxation of transactions using the Internet and Internet access, examine model State legislation with respect to such taxation and simplified administrative procedures concerning such taxation, and transmit to the President and the Congress proposed legislation reflecting the findings of such study and examination. Directs the President to review such proposals and submit to the Congress such policy recommendations as deemed necessary or expedient. Provides for the expedited consideration of the proposed legislation.

(Sec. 3) Amends the Communications Act of 1934 (the Act) to prohibit the Federal Communications Commission or any State commission from having regulatory authority or jurisdiction with respect to charges paid by subscribers for Internet access or online services.

(Sec. 4) Exempts providers of such services from Federal regulatory fees. Requires the National Telecommunications and Information Administration to determine whether any direct or indirect Federal regulatory fees, other than the fees identified under the Act, are imposed on such providers, and if so, make recommendations to the Congress regarding whether such fees should be modified or eliminated.

(Sec. 5) Requires the Secretary of Commerce to examine: (1) barriers imposed in foreign markets on U.S. providers of property, goods, services, or information engaged in electronic commerce and on U.S. providers of telecommunications services; (2) how the imposition of such barriers will affect U.S. consumers, the competitiveness of U.S. citizens acting as such providers in foreign markets, and the growth and maturing of the Internet; and (3) measures the Government should pursue to foster, promote, and develop electronic commerce in the United States and in foreign markets. Directs: (1) the Secretary to report to the Congress on the results of the examination; and (2) the President to review such report and submit to the appropriate congressional committees such policy recommendations as deemed necessary or expedient.

(Sec. 6) Expresses the sense of the Congress that the President should seek bilateral and multilateral agreements to remove barriers to global electronic commerce through various international organizations to require that the provision of Internet access or online services be free from undue and discriminatory regulation by foreign governments and that electronic commercial transactions between U.S. and foreign providers of property, goods, services, and information be free from undue and discriminatory regulation, international tariffs, and discriminatory taxation.