Puerto Rican Telecommunications Alliance asks FCC to evaluate bill to tax internet service

By this letter, the Puerto Rican Telecommunications Alliance (PRTA) urgently requests the immediate attention of the Federal Communications Commission in a matter presently before Puerto Rico's House of Representatives. In the dark of night, Puerto Rico's Senate has already passed Senate Bill PS1333 that will impose taxes on Internet Access services in flagrant violation of the spirit of the Internet Tax Freedom Act (ITFA) and an affront to the US' and this FCC's goal of advancing the deployment of affordable and reliable high-speed broadband Internet Access services to all Americans, including the American citizen residents of Puerto Rico. Industry experts estimate the new tax would increase the existing tax burdens on providers of telecommunications and broadband services by up to 1,000% and would, for the very first time, impose taxes on Internet Access services. 

The PRTA hereby requests [FCC Chairman Ajit Pai] to take notice of the Puerto Rico legislature's attempt to tax the Internet and broadband Internet access services....Further, to consider the impact of such pending legislation will have on increasing the operating costs of telecommunications and broadband companies in Puerto Rico, how such massive increases in costs through the imposition of taxes will discourage investment, and ultimately increase the price of service to Puerto Rican consumers of broadband Internet Access services. And finally, to evaluate whether the proposed legislation would interfere with the reconstruction of Puerto Rico's telecommunications infrastructure or otherwise dilute, diminish, or redirect to unintended recipients the economic benefits that were bestowed upon the island by the U.S. Congress and FCC in the aftermath of Hurricanes Irma and Maria in 2017, recent earthquakes, and the on-going COVID-19 pandemic.