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

TSBlondieNYC Launches Official Website Through PAYSITE

TSBlondieNYC has launched an official website through PAYSITE.

Teasr Launches Live Shopping Platform for Creators and Sexual Wellness Brands

Teasr has officially launched its live-selling and social-shopping platform for wellness brands, creators, educators, and artisans.

JulModels Launches Cross-Paysite Royalty Generation Feature for Performers and Creators

JulModels has introduced JulRoyalty, a feature that allows performers and creators to earn royalties from their existing scenes and clips.

FSC Hails Members, Allies in SCREEN Act Victory

The Free Speech Coalition (FSC) released a statement today praising its members and allies after a successful lobbying effort to prevent the SCREEN Act, a nationwide age verification bill, from advancing out of the Commerce Committee for a full vote on the Senate floor.

SCREEN Act Stalls in Senate Committee Over Technicality

The Senate Commerce Committee on Wednesday voted to approve the SCREEN Act, which would mandate nationwide site-based age verification of users seeking to access adult content online, but a procedural issue blocked the bill from advancing to the full Senate.

DarkFans Adds Time-Limited Content Pricing

DarkFans has debuted its Configure Limits feature for automating content promotions.

Clips4Sale, Free Speech Coalition Partner for 'Creator Workflow' Webinar

Clips4Sale (C4S) and Free Speech Coalition (FSC) partnered for a webinar titled “Organization & Workflow: Simple Systems for Busy Creators.”

Pineapple Support, Streamate Partner for 'Self-Parenting' Support Group

Pineapple Support and Streamate are hosting a free online support group focused on self-care for performers, titled "Self-Parenting: Becoming Your Own Safe Space."

Nerds of Porn to Relaunch Site Through MyMember.site

Nerds of Porn is relaunching its membership site through MyMember.site on Aug. 14.

Show More