Internet Access Tax Ban Reintroduced in Senate

WASHINGTON — A bill that would renew the ban on taxes on Internet access that is set to expire Nov. 1 has been reintroduced in the Senate by Sen. John Sununu, R-N.H. The bill is identical to a bill Sununu introduced in January.

If the tax ban is not extended, state and local governments will be able to tax Internet access, including DSL, cable modem and Blackberry-type wireless transmission services.

Sununu filed this bill under the Senate's Rule 14, which makes the bill eligible for immediate consideration on the Senate floor instead of passing through subcommittee and committee votes.

In late September, a bill that would have extended the ban for four more years was removed from consideration by the Senate Commerce Committee by committee chairman Daniel Inouye, D-Hawaii.

The day after the bill was removed from consideration a statement from the committee said "further negotiations were warranted," but no vote has been scheduled. The House of Representatives Judiciary Committee is considering similar legislation, which is scheduled for discussion by the committee today.

Sununu said he reintroduced his bill under Rule 14 because he believes enacting legislation to make the Internet tax ban permanent is so important that there's a need to "keep every door open."

Senate Republican leader Mitch McConnell of Kentucky and Sens. Trent Lott, R-Miss., and John McCain, R-Ariz., joined Sununu in introducing the bill, but another original cosponsor — Sen. Ron Wyden, D-Ore., who authored the first Internet tax ban in 1998 — did not. His office didn't respond immediately to reporters' requests for an explanation.

State officials and Internet and broadband companies still disagree over whether Internet access taxes should be banned permanently, and reports indicate that it seems likely that a limited-time extension will be passed and the question will be revisited again in a few years.

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

BranditScan Rolls Out 2 New Platform Features

BranditScan has introduced its new Traffic Optimization and Doxing Protection features for creators.

NMG Management Partners With Cosplayground to Scale Distribution

NMG Management has partnered with Cosplayground to expand the studio’s digital distribution and licensing operations.

Dreamcam Rolls Out 'Voice Translator AI'

Dreamcam has introduced a Voice Translator AI to its livestreaming platform.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a pending ban on “step” content to apply only if adult performers role-play as minors.

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Climaxx Media Launches Networking Platform

Climaxx Media has officially launched its new networking platform.

Italian Court in Aylo Case Limits International Reach of AV Rules

An Italian administrative court has ruled that Italy’s recently-enacted age verification rules for adult content may not currently be enforced against sites based in other EU member states, pending further procedural action under the EU’s Directive on Electronic Commerce.

OCC, FDIC Prohibit Use of 'Reputation Risk' by Regulators

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on Tuesday issued a final rule codifying the elimination of ‘reputation risk’ as a criterion in their supervision of financial institutions.

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in Wisconsin, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

Show More