WASHINGTON-The House Wednesday passed legislation permanently banning Internet access taxes and prohibiting states and localities from imposing multiple and discriminatory taxes on electronic commerce.
The bill, which passed overwhelmingly on a voice vote, now moves to the Senate for consideration. A temporary ban on these taxes is set to expire Nov. 1.
“Failure to make the moratorium permanent could result in the imposition of a complex web of taxes that would create uncertainty for the information technology industry-a sector of the economy which can ill afford further setbacks,” said House Judiciary Committee Chairman James Sensenbrenner (R-Wis.) “This permanent moratorium will vitalize the IT economy, benefit consumers and stimulate equal access to the invaluable resource that is the Internet. Further, we must encourage equal participation in the digital age by keeping Internet access as affordable as possible.”
The measure does not exempt Internet retailers from collecting and remitting sales taxes to the states and is technology neutral by providing tax freedom for all forms of Internet access, including wireless.
Commerce Secretary Donald Evans and Treasury Secretary John Snow praised the House vote, saying they “will continue to pursue this issue to make sure a permanent moratorium is available for President Bush to sign by the November 1 deadline.”
