House Panel OKs Internet Tax Moratorium

A House Judiciary subcommittee Thursday afternoon approved a bill to permanently extend the existing moratorium on new and discriminatory Internet taxes. The measure now goes to the full Judiciary Committee for a vote.

A House Judiciary subcommittee Thursday afternoon approved a bill to permanently extend the existing moratorium on new and discriminatory Internet taxes. The measure now goes to the full Judiciary Committee for a vote. The current temporary moratorium on Internet taxes — including taxes on Internet access, multiple-state taxation of a single item bought online, and discriminatory taxes that treat Internet purchases differently than other types of sales — is set to expire in November.

In the Senate, Ron Wyden (D-Ore.) and Conrad Burns (R-Mont.) have filed bills (H.R. 49 and S. 51) to keep the Internet tax free. The two sponsored the original three-year moratorium in 1998. It was extended for another two years in 2001 on legislation also sponsored by Wyden and Cox.

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