House to Vote On Extending Internet Tax Moratorium

Share this content:
The U.S. House of Representatives is scheduled today to vote on the Internet Non-Discrimination Act, H.R. 3709, which will extend the current nationwide ban on new, special and discriminatory Internet taxes for five years.


Currently, the moratorium is due to expire Oct. 21, 2001. The bill would extend the ban until Oct. 21, 2006.


The extended moratorium "gives the states the time to simplify," said Ross Starek, senior vice president for the catalog industry at the Direct Marketing Association, Washington.


Last week, the House Judiciary Committee approved the bill by a vote of 29-8, and it has swiftly moved to the House, where it is likely to be approved. If the bill is approved, it would be sent to the Senate for consideration.


In addition to banning new taxes for five years, the bill, sponsored by Rep. Christopher Cox, R-CA, and its companion in the Senate sponsored by Senator Ron Wyden, D-OR, would do away with the previously grandfathered Internet taxes that a few states were able to impose before the original act passed.


H.R. 3709 also would limit the ability of states to tax remote sales made over the Internet because it designates several Internet-related items as not sufficient to qualify as nexus. These items include a retailer's Internet service provider, digital data on a server and the use of telecommunications services.


The bill also permanently bans Internet access charges and repeals the excise tax on telephone bills.


In related news, Rep. George Gekas, R-PA, chairman of the Commercial and Administrative Law Subcommittee of the House Judiciary Committee is holding a hearing May 17 to look at aspect of I-taxes. It will be the first in a series of hearings that will include examination of the states' expanded duty to collect sales and use tax.
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above