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

Texas Resumes AV Lawsuit Against Aylo Following SCOTUS Decision

A district court judge in Texas has unfrozen the state’s $1.6 million lawsuit against Aylo for allegedly failing to comply with age verification requirements, Bloomberg Law is reporting.

JuicyAds Wins Trademark Infringement Case Against Fraudulent Domain

JuicyAds has won its World Intellectual Property Organization (WIPO) case against a website using a similar domain to impersonate the company's site and defraud customers.

Anissa Kate, Jordan Starr Top AEBN for Q2 of 2025

AEBN has published its top-selling stars for the second quarter of 2025, with Anissa Kate landing atop the leaderboard for straight theaters and Jordan Starr heading up the gay rankings.

AEBN Reveals Eva Maxim as Top Trans Star for Q2 of 2025

AEBN has published its top trans stars list for the second quarter of 2025, with Eva Maxim landing atop the leaderboard.

France Reinstates Age Verification Rule for EU Sites

France’s highest court, the Council of State, on Tuesday reinstated age verification rules for EU-based sites under the country’s Security and Regulation of the Digital Space (SREN) law, ruling in favor of the French government and against Hammy Media.

Whisper Fans Joins Pineapple Support as Supporter-Level Sponsor

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

Utherverse Launches 'Red Light Center' Virtual World

Virtual reality and metaverse technology company Utherverse has launched its new virtual world, RedLightCenter.io.

European Commission Approves AV Guidelines, Unveils Prototype App

The European Commission on Monday released its final, approved guidelines for protecting minors online under the EU’s Digital Services Act (DSA) and made public a “white label” age verification app intended to help sites and platforms comply with age verification rules under the DSA.

Show More