President Bush Signs Internet Tax Freedom Act
The previous three-year moratorium on imposing state and local taxes on the Internet was set to expire today.
President Bush has extended the moratorium on state and local government Internet access taxes.
Bush signed H.R. 3678, the "Internet Tax Freedom Act Amendment Acts of 2007," into law this week. The law prohibits multiple and discriminatory taxes on electronic commerce until Nov. 1, 2014.
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Lawmakers first placed a moratorium on charging taxes for Internet access or applying multiple taxes to a single online transaction in 1998. They extended it in 2004. The moratorium prohibits tax schemes that would discriminate against online business. The previous three-year moratorium was set to expire Thursday.
Congress voted unanimously in favor of the extension Tuesday. Bush signed it into law Wednesday. The Computing Technology Industry Association (CompTIA) praised the last-minute move.
"The president's signing of the Internet Tax Freedom Act today represents a historic victory for small businesses, consumers, and all American taxpayers," Roger Cochetti, group director of U.S. Public Policy for CompTIA, said in a statement.
"Congress' decision to extend the moratorium on Internet access taxes and multiple or discriminatory taxes on internet sales for an unprecedented seven years signals this Congress' firm belief that the Internet is priceless engine for economic, social and civic advancement in the United States that must not be burdened with discriminatory and abusive tax schemes," Cochetti said.
Wireless companies, Internet service providers, and online businesses support the extension, which now encompasses forms of e-commerce other than Web access and online shopping. They include e-mail, voice and video messaging, and personal storage. Many want a permanent ban.