Internet Tax Ban Extension Stalls in Senate

WASHINGTON — The Senate Commerce Committee canceled a vote on Thursday that would have extended a moratorium on state Internet access taxes for at least four more years. The ban on access taxes has been in place since 1998, and was last reinstated by Congress in 2004 for a period of three years, ending Nov. 1.

"I am disappointed that the Commerce Committee was unable to act on legislation to extend the Internet tax moratorium at today's [meeting]," Commerce Committee Chairman Sen. Daniel Inouye, D - Hawaii, said in a statement.

The question of extending the ban on Internet access taxes was discussed last May in a hearing before the House Judiciary Committee's Subcommittee on Commercial and Administrative Law.

The bill under consideration Thursday, sponsored by Senators Tom Carper, D - Del., and Lamar Alexander, R - Tenn., would extend the Internet tax moratorium for another four years. A similar measure was recently introduced in the House by John Conyers, D. - Mich., chairman of the House Judiciary Committee.

Senators on both sides of the issue had sought a compromise that would have extended the moratorium to six years. The four-year extension is backed by the National Governors Association and includes a "grandfather" clause that would allow the handful of states which had Internet access taxes in place in 1998 to continue imposing the taxes.

Internet service providers, including telephone and cable companies, favor a different bill backed by Senators John Sununu, R - N.H., and John McCain, R - Ariz., which would make the ban permanent. Inouye canceled the vote on Thursday when it became apparent that several senators from both parties would vote for the permanent ban.

Internet service providers have claimed that the price of Internet access could rise by as much as 17 percent if the moratorium on state taxes is allowed to expire.

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

Florida Congressman Files Latest Bill to Repeal Section 230

Rep. Jimmy Patronis of Florida has become the latest member of Congress to propose legislation that would repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Irish Parliamentary Committee Weighs Stricter AV Laws

The Irish national parliament’s Joint Committee on Arts, Media, Communications, Culture and Sport met Wednesday to discuss regulation of online platforms and improving online safety, including calls for stricter age verification by adult sites.

Ofcom Issues Guidance on Age Check Placement for Adult Sites

U.K. media regulator Ofcom on Wednesday published its recommendations for where and how adult sites should deploy age checks as required for compliance with the Online Safety Act.

Tubes Booster Launches Web Hosting Solutions

Content hosting platform Tubes Booster has launched two new hosting solutions.

YourPaysitePartner Rebrands as Paysite.com

YourPaysitePartner has officially been rebranded as Paysite.com.

SWR Data Announces 2026 'State of Creator' Winter Report

Adult industry market research outfit SWR Data has announced that it will release data from its annual State of the Creator survey at an XBIZ LA workshop, taking place at the Kimpton Everly Hotel.

Holly Randall Launches Marketing Firm, Signs Stripchat Deal

Holly Randall has launched her new marketing firm, Holly Randall Agency, and signed the agency’s first deal with Stripchat.

2026 XBIZ Conference Speaker Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ 2026, the latest edition of North America’s largest adult industry conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Dreamcam Rolls Out Browser-Based Passthrough VR

Dreamcam has introduced passthrough VR to its livestreaming platform.

2026 TEAs Nominees Announced

Nominees for the 2026 Trans Erotica Awards (TEAs), presented by Clips4Sale, have been announced. The ceremony will return to the Avalon in Hollywood on Sunday, March 8.

Show More