Senate Finally Backs Internet Tax Ban

WASHINGTON – After laboring over the issue of Internet taxation since November 2003, the U.S. Senate voted 93 to 3 to give the ban on taxing high-speed, wireless and dial-up services another four years.

The temporary extension was presented as a salvo by senators who felt that a permanent moratorium on online telecommunications services would unduly harm state and local governments and deprive them of badly needed revenue.

The decision is considered a compromise and is expected to spur the rollout of high-speed and wireless services.

The original ban, which was passed in 1998 as the Internet Tax Freedom Act, occurred before the advent of high-speed access and only applied to dial-up services. Prior to this week's decision, high-speed access was subject to taxation, although service providers are now expected to phase out that taxation process over the next two years, taking a projected loss of $100 million.

The bill that passed through the Senate yesterday was an amended version of the former, and managed to strike middle ground in the fierce debate among lawmakers.

"The bottom line is, the Senate passed a bill that will end technological discrimination and save consumers millions of dollars," said Ron Wyden (D-Ore.), one of the authors of the original bill, which asked lawmakers to approve a permanent ban on Internet taxation.

The Senate vote also ended the controversial debate over the 10 states that had been exempt from the 1998 tax ban, which enabled them to tax both dial-up and high-speed access. Lawmakers in favor of keeping those states exempt were concerned that revenue losses would tally into the billions of dollars. According to the Senate's vote, those states will remain exempt from the four-year ban.

Those states include Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas, Washington and Wisconsin.

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

NATS Launches Integrated Content Management System

Too Much Media (TMM) has rolled out an integrated, no-charge Content Management System (CMS) to its NATS platform.

AEBN Reveals Avery Lust as Top Trans Star for Q3 of 2025

AEBN has published its top trans stars list for the third quarter of 2025, with Avery Lust landing atop the leaderboard.

FSC: California's Device-Based AV Law Does Not Apply to Adult

The Free Speech Coalition (FSC) put out an advisory today explaining that California's new device-based age verification law does not apply to adult websites.

Reena Sky Launches New Paysite

Reena Sky has launched her new official paysite, ILoveReenaSky.com.

NextGen Payment Joins ASACP as Corporate Sponsor

NextGen Payment has signed on as the latest corporate sponsor for the Association of Sites Advocating Child Protection (ASACP).

Lauren Phillips, Derek Kage Cap AEBN's Top Stars for 3rd Quarter of 2025

AEBN has revealed its most popular performers in straight and gay theaters for the third quarter of 2025.

XBIZ 2026 Conference to Debut All-New Company Lounges, Community Track

The event website for XBIZ 2026 is now live, unveiling details for North America’s largest adult industry conference, including two all-new show features: Company Lounges and a Community Track.

Mymember.site Integrates VR Functionality

Mymember.site has added virtual reality playback capability to its website management platform.

Texas Patti to Launch Fetish Platform 'EmpireDom'

Performer and content creator Texas Patti is launching a new platform for doms and fetish creators, EmpireDom.com.

Ohio AG Threatens Action Against 'Major' Adult Sites Over AV Law

Ohio Attorney General Dave Yost announced today that his office is sending "notice of violation" letters to 19 adult websites for failure to comply with the state's recently enacted age verification law.

Show More