House Committee Votes to Continue Internet Access Tax Ban

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Legislation to continue the ban on Internet access taxes made progress in the House of Representatives yesterday.

The House Judiciary Committee voted to continue the ban, which is due to expire in November. It also reportedly removed a grandfather clause that had allowed several states to issue taxes that were in place before the ban was passed in 1998. The committee also specified that the ban applies to high-speed links, which are taxed by some states, as well as dial-up connections.

Known as the Internet Tax Non-Discrimination Act, the legislation was originally co-authored by Sen. Ron Wyden, D-OR, and Rep. Christopher Cox, R-CA.

The Senate Commerce, Science and Transportation Committee also held a hearing yesterday on the Internet Tax Non-Discrimination Act. Witnesses expressed strong support for a permanent ban on Internet access taxes, and for keeping the issue separate from the effort by many states to collect sales taxes for online purchases.

A vote on the House floor and action in the Senate committee are expected soon.

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