Home > News > House, Senate Consider Renewing Ban on Internet Access Tax • Bookmark   • Newsletters   • Register Search Options


House, Senate Consider Renewing Ban on Internet Access Tax

House, Senate Consider Renewing Ban on Internet Access Tax
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.
May 23, 2007 2:30 PM PDT    Text size: 
WASHINGTON — The U.S. House of Representatives began a debate on Tuesday on a law currently restricting state governments from taxing Internet access.

The Internet Tax Freedom Act, passed in 1998, says that local governments generally cannot tax Internet access, including DSL, cable modem and BlackBerry-type wireless transmission services. The law also prohibits governments from taxing items sold online differently from items sold at brick-and-mortar stores. It does not deal with sales taxes on online shopping.

The House Judiciary Committee's Subcommittee on Commercial and Administrative Law held a brief oversight hearing on whether the restriction should be made permanent or allowed to lapse on Nov. 1.

"If we could liken the Internet to a mall, a place where you can go in and purchase goods and services, and also liken it to a library, a place where you can go and pull a book, pull a resource, and obtain some information," Rep. Hank Johnson, D-Ga., said, "Why would we tax a person upon entering a mall or why would we tax a person upon entering the library?

Internet access providers support making the tax ban permanent, and Rep. Anna Eshoo, D-Calif., who represents California's Silicon Valley, introduced the "Permanent Internet Tax Freedom Act" in January. Similar bills have been proposed in the Senate.

State and local governments want to end the tax ban, because extending it would deprive states of revenue indefinitely, and that the original purpose of the tax ban — encouraging use of the Internet — has essentially been accomplished.

"If a moratorium is made permanent, there is a slippery slope where other industries will seek their own preemptions of state laws," David Quam, director of federal relations for the National Governors Association, said.

Quam said that the NGA supports extending the ban in a limited sense and for a defined time period. Reports by government auditors and the University of Tennessee have shown no statistical correlation between levels of broadband penetration and the existence of Internet access taxes, according to Quam.

"Taxes always impact everything else in our economy," Rep. Jim Jordan, R-Ohio, one of 66 House members who co-sponsored the permanent ban proposal, said. "I would assume they've had a major impact in this area as well."

A U.S. Senate committee considered the issue at its own hearing Wednesday.

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Data Privacy Is Tightening Up in the E.U.

Have you begun preparing for GDPR? If you are like most, you haven’t even heard of GDPR, but also if you are like most, it is going to affect your business, starting May 25, 2018. The GDPR, or General... More »

Preventing Legal Problems Before They Start

Dentists typically recommend that a person’s teeth be cleaned every six months and that oral X-rays be taken at least once every year. Internists recommend that a person receive a physical examination... More »

Could Adult Content Be Banned?

Earlier this month, I met with the Free Speech Coalition’s board of directors for our annual review. Despite the headwinds our industry faces, politically and economically, we are, as an organization,... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.


Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport


Aug 03 - Aug 06
Montreal, Quebec

XBIZ Berlin 2017

Sep 11 - Sep 14
Berlin, Germany
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!