Internet tax moratorium extended
For a while it looked like Congress was going to dither until the moratorium on taxes on Internet connections expired on November 1. However, despite the heavy lobbying against its renewal, both houses of Congress have now passed bills extending the tax moratorium. Ars Technica reports:
With the ban on taxing Internet connections set to expire at the end of October, both houses of Congress are taking action. Last night, the Senate passed a bill that would extend the 1998 Internet Tax Freedom Act yet again, this time for seven years. A version of the legislation passed by the House earlier this week would only extend it for another four years.
The moratorium was originally enacted in 1998 and has since been extended twice, in 2001 and 2004. Under the law, local governments are prohibited from levying access taxes on Internet connections (purchases can be subject to applicable state taxes). The nine states that managed to enact ‘Net access taxes prior to the moratorium’s enactment in 1998 are exempt from the ban, and would continue to be under the just-passed legislation.
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