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 © 2025 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

German Court Puts PornHub, YouPorn 'Network Ban' on Hold

The Administrative Court of Düsseldorf has temporarily blocked the State Media Authority of North Rhine-Westphalia (LfM) from forcing telecom providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

FSC: NC Law Invalidating Model Contracts Takes Effect December 1

The Free Speech Coalition (FSC) announced today that North Carolina's Prevent Exploitation of Women and Minors Act goes into effect on December 1.The announcement follows:

NYC Adult Businesses Seek SCOTUS Appeal in Zoning Case

Attorneys representing a group of New York City adult businesses are asking the U.S. Supreme Court to hear an appeal of a lower court’s decision allowing enforcement of a 2001 zoning law aimed at forcing adult retail stores out of most parts of New York City.

Teasy Agency Launches Marketing Firm

Teasy Agency has officially launched Teasy Marketing firm.

Ofcom Investigates More Sites in Wake of AV Traffic Shifts

U.K. media regulator Ofcom has launched investigations into 20 more adult sites as part of its age assurance enforcement program under the Online Safety Act.

MintStars Launches Debit Card for Creators

MintStars has launched its MintStars Creator Card, powered by Payy.

xHamster Settles Texas AV Lawsuit, Pays $120,000

Hammy Media, parent company of xHamster, has settled a lawsuit brought by the state of Texas over alleged noncompliance with the state’s age verification law, agreeing to pay a $120,000 penalty.

RevealMe Joins Pineapple Support as Partner-Level Sponsor

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

OnlyFans Institutes Criminal Background Checks for US Creators

OnlyFans will screen creators in the United States for criminal convictions, CEO Keily Blair has announced in a post on LinkedIn.

Pineapple Support to Host 'Healthier Relationships' Support Group

Pineapple Support is hosting a free online support group on enhancing connection and personal growth.

Show More