The U.S. Senate is dithering over an Internet taxation bill, leaving Lawrence officials concerned for the future of an important cash source for the city.

Assistant City Manager Dave Corliss said Lawrence could lose hundreds of thousands of dollars if Congress mishandled legislation proposing a moratorium on Internet access taxes, and created a blanket ban on all Internet taxes and fees.

The city gets about $600,000 in franchise fees for utility rights of way from cable and telephone companies. Those companies also provide Web access.

“That’s a very significant revenue source for cities,” Corliss said. “There is a concern that if they extend the moratorium or make it permanent that it will be written so sloppily that it might include those franchise fees.”

The city gets $400,000 a year from cable franchise fees and $200,000 from telephone franchise fees.

Earlier this month, the Senate failed to act on a bill that would permanently ban taxes on Internet access charges. The bill already had been passed by the House in a voice vote and was favored by 3rd District Democratic Rep. Dennis Moore and 2nd District Republican Rep. Jim Ryun.

The bill has stalled in the Senate. Kansas Republican Sens. Sam Brownback and Pat Roberts also favor a permanent ban on Internet access taxes, representatives in their offices said. It was unclear when the issue might be taken up again, the senators’ aides said.

The ability to collect sales taxes from Internet sales — currently banned by federal law — also might be affected by passage of a moratorium concerning access taxes, Corliss said.

An Internet sales tax would allow states and municipalities to collect taxes on purchases made by their residents over the Internet.

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The League of Kansas Municipalities estimates such a tax could bring local governments $75 million to $150 million in revenue, Executive Director Don Moler said. Lawrence officials, who have long advocated for the authority, don’t know how much they could raise from Internet sales taxes.

“That would certainly be good to know,” Corliss said.

If the access tax bill isn’t complete by Congress’ expected adjournment Friday, approval will have to wait until at least January.