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

Platform Pulse: Inside the Technology and Trends Powering the Direct-to-fan Economy

For a brief, glittering moment, the fan-platform boom felt like a modern-day gold rush. The premise seemed simple: Open an account, post some tantalizing content and watch the subscriptions roll in. OnlyFans became a household name, "selling feet pics" became a cultural punchline and creators poured into the market hoping to claim their share of the action.

FSC Sets Dates, Qualifiers for December Board of Directors Election

The Free Speech Coalition (FSC) has published dates and qualifiers for its upcoming board of directors election.

Aylo Wins Preliminary Injunction Against Utah AV Law's VPN Rule

A federal court on Thursday issued a preliminary injunction preventing the state of Utah from enforcing a legal provision that would make adult websites liable if minors in the state circumvent geolocation efforts in order to bypass age verification.

Ofcom Investigates Pornhub's Device-Based UK Age Checks

U.K. media regulator Ofcom has opened an investigation to determine whether Pornhub parent company Aylo’s use of device-based age verification complies with the U.K.’s Online Safety Act.

'Studio Vanniall' Launches Through PAYSITE

Vanniall's official website StudioVanniall.com has launched through PAYSITE.

France Weighs Ban on Purchase of 'Remote' Sexual Services

The French National Assembly is considering a proposal to criminalize the purchase, and/or facilitation by online platforms, of sexual services performed remotely by streamers and custom content creators.

YourVids Launches Customizable Subscription Feature for Creators

YourVids has rolled out YourFans, a service that allows creators to design customizable subscription tiers, from which they receive 100% of the revenue.

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 upcoming release of the first feature-length title from her new production company.

Adult Game Fest Announces Nominees for Inaugural Awards Show

Organizers of the inaugural Adult Game Fest virtual trade show have announced the nominees for their inaugural 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.

Show More