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

2026 XBIZ Miami Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Miami, set to take place May 11-14 at the Goodtime Hotel in South Beach.

Court of International Trade Rejects Trump 'Replacement' Tariffs

The U.S. Court of International Trade on Thursday ruled that President Trump’s 10% global tariff under the Trade Act of 1974, imposed after the Supreme Court invalidated the administration’s broad “Liberation Day” tariff regime, is illegal — but stopped short of a nationwide injunction against the tariff.

UPDATED: Utah VPN Rule Enforcement Paused in Aylo Lawsuit

Provisions of a new Utah law making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification, which were set to come into force on Wednesday, have been put on hold until Sept. 3.

JustFor.fans Launches 'JFF Create' iPhone App

JustFor.fans (JFF) has launched its new iPhone creator management app, JFF Create.

ShootXEvents Joins ASACP as Media Sponsor

ShootXEvents has signed on as an in-kind media sponsor for the Association of Sites Advocating Child Protection (ASACP).

Pornhub Unblocks UK Users on iOS Devices, Citing Apple AV Effectiveness

Pornhub parent company Aylo on Tuesday announced that users in the United Kingdom will once again be able to access the popular site if they are using Apple devices and have confirmed their age through Apple’s U.K. age-verification process.

North Carolina Weighing Tax on Brick-and-Mortar Sales of Adult DVDs, Mags

The North Carolina state legislature is considering a bill that would impose a new 10% tax on adult DVDs, magazines and other visual material sold by physical retailers in the state.

FSC Launches 'Know Your Rights' 1st Amendment Resource Page

The Free Speech Coalition (FSC) has launched "Know Your Rights," a resource page detailing First Amendment protest guidelines.

Utah VPN Rule for Adult Sites Takes Effect This Week

A new law in Utah comes into force Wednesday, making adult websites liable if minors in the state circumvent geolocation efforts to bypass age verification.

UPDATED: Court Approves Class Action in Labor Claims Against VMG

A U.S. district court has granted class certification in a civil lawsuit filed against Vixen Media Group (VMG) by retired performer Kenzie Anne, making it possible for additional performers to join in a class action against the company.

Show More