Senate Ban on Internet Taxes Passes House

WASHINGTON — The House of Representatives today unanimously approved the seven-year ban on Internet access taxes passed by the Senate last week.

The extension must be signed by President Bush before the current moratorium ends Thursday, or it will expire.

The Internet tax moratorium originally was passed in 1998, and this is the third time it has been extended. The House passed a four-year extension on Oct. 16, but senators who wanted a permanent ban passed a seven-year bill last week, sending the seven-year bill back to the House.

"By extending the ban on Internet access taxes for a longer period of time, we give businesses the certainty they need to spend billions of dollars to construct, maintain and update the broadband Internet infrastructure throughout the country," said Rep. Anna G. Eshoo, D-Calif., whose district includes much of Silicon Valley in Northern California. "This legislation will help keep the cost of Internet access down so that all individuals will continue to use the great informational tool that is the Internet."

Eshoo was among the lawmakers who supported a permanent ban, which also was supported by Internet companies such as Google Inc. and Yahoo Inc., and Internet service providers including AT&T Inc., Verizon Communications Inc. and Time Warner Inc.

But local and state governments pushed for the extension to only be temporary, arguing that Congress might need to adjust the legislation in the future as more services move to the Internet.

The bill states that services like telephone and TV provided over the Internet are not exempted from taxes. Local and state governments depend on money from such taxes.

Services related to Internet access, such as instant messaging, email and personal online storage, are included in the ban.

"This action came just in the nick of time," said Dorothy Coleman, vice president for tax policy at the National Association of Manufacturers, which along with the U.S. Chamber of Commerce and other business trade groups, supported a permanent extension. "American businesses of all sizes rely on high-speed, broadband Internet access to remain competitive in the global marketplace."

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

Alabama Notifying Adult Sites of New Tax Set to Take Effect Sept. 1

The Alabama Department of Revenue has begun sending notices to adult site operators about a new 10% tax on their revenues, set to be enforced starting Sept. 1.

Ondato, CCBill Announce Strategic Partnership for Global High-Risk Market

Age and identity verification firm Ondato and payment processor CCBill have formed a strategic partnership to serve the global high-risk market.

Ofcom Investigates 4 More Adult Companies for OSA Compliance

U.K. media regulator Ofcom has launched investigations into whether four companies operating adult websites have implemented requisite age assurance measures under the Online Safety Act, the agency announced Thursday.

Taylor Nicole Launches New Site Through YourPaysitePartner

Creator Taylor Nicole has launched her new official website through YourPaysitePartner (YPP).

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Report: VPN Downloads Soar in UK Following Age Verification Deadline

Virtual private network apps, which can be used to circumvent geo-specific age verification requirements, are topping Apple App Store downloads in the U.K. in the wake of new Online Safety Act rules, the BBC is reporting.

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Show More