Congress Blocks Tax on Internet Connections

WASHINGTON — Congress on Friday blocked state and local governments from taxing consumer Internet connections — both traditional dial-up services high-speed broadband lines — for the next three years.

The bill, which will now be sent to President Bush for his signature, also blocks multiple state and local taxes from being imposed on merchandise and services purchased over the Internet, including online adult content.

States that had started taxing Internet access before the first ban, enacted in 1998, can continue collecting those fees. States that tax fast DSL lines must start phasing out the levies. The tax moratorium ends in November 2007.

The decision to block an Internet tax comes a day after researchers testified to a Congress subcommittee on “porn addiction.”

Online adult material is hooking adults into an addiction compared to heroin or crack that threatens their jobs and families, a panel of anti-porn advocates told the hearing organized by Sen. Sam Brownback, R-Kan., a Christian conservative.

Mary Anne Layden, a researcher from the University of Pennsylvania, told of one patient, a business executive, who arrived at his office at 9 a.m. each day, logged onto online adult sites, and didn't log off until 5 p.m.

She called on Congress to provide funds for billboards and bus ads warning people to avoid porn, strip clubs and prostitutes.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Jennifer White Launches Official Site, Debuts 1st Release

Reigning XMAs Female Performer of the Year Jennifer White has launched her new website, JenniferWhite.com, and announced the first feature-length showcase from her new production company.

Adult Game Fest Announces Nominees for Inaugural Awards Show

Organizers for the inaugural Adult Game Fest convention and trade show have announced the nominees for the event's awards ceremony, taking place Saturday, Sept. 26, at 5 p.m. (PDT).

Byborg Enterprises Joins Pineapple Support as Sponsor

Byborg Enterprises has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

XBIZ 2027 Hotel Room Booking Now Open

Hotel booking is now open for XBIZ 2027, giving attendees the opportunity to secure their stay at the host venue, JW Marriott L.A. Live.

FSC Case Against Tennessee AV Law Can Go Forward, Court Rules

A U.S. district court on Tuesday denied the Tennessee attorney general’s motion to dismiss a Free Speech Coalition lawsuit challenging the Protect Tennessee Minors Act.

AEBN Publishes Popular Searches for July, August

AEBN has published the top search terms for July and August from its straight and gay theaters in all 50 states and the District of Columbia.

2027 XMA 'Fan Favorite' Pre-Nominations Period Now Open

XMA event organizers have announced that the pre-nomination period for Fan Favorite categories for the January 2027 ceremony is now open.

California Legislature Passes Stricter UGC Rules for Adult Sites

A bill to impose tighter compliance standards for user-generated content (UGC) on adult websites has been approved by the California state legislature and now awaits the governor’s signature.

CollabGPS Rolls Out 'Verification Badge' Update

CollabGPS has launched a badge system for user verification.

X3 Amsterdam Imports Hollywood Glitz With Continental Style

A throng of fans from across Europe and around the globe descended on the Passenger Terminal building on Friday, eager to meet their favorite adult stars at the inaugural X3 Amsterdam fan expo.

Show More