House Subcommittee Holds Hearing on Extending Internet Tax Moratorium

Share this content:
Extending the moratorium on Internet access taxes was the main subject of a hearing held yesterday by the House Subcommittee on Commercial and Administrative Law, chaired by Rep. Bob Barr, R-GA.

The hearing centered on a bill sponsored by Rep. Christopher Cox, R-CA, called the Internet Tax Nondiscrimination Act, that would make permanent the ban on Internet access taxes. The current moratorium expires Oct. 21.

A panel with four witnesses offered testimony. They were: Cox; Gov. James Gilmore, R-VA; Gov. John Engler, R-MI; and Robert Comfort, vice president and tax counsel for

While the focus was on Internet access tax, in his testimony, Engler called on Congress to expand interstate sales tax collection for all remote sales, regardless of whether a company has nexus, or physical presence, in a state. Comfort's testimony also addressed interstate sales tax collection. However, he said there should be no expansion of the current rules on interstate sales tax collection unless there is substantial tax simplification among states.

Under a 1992 Supreme Court decision, states cannot require retailers to collect sales taxes unless they have a physical presence in that state.

The Direct Marketing Association yesterday urged the House subcommittee to support extending the moratorium.

"Extending the moratorium … is critical to keeping the on-ramp to the information superhighway open for all Americans," said H. Robert Wientzen, president/CEO of the DMA. "Instead of ramming through a scheme that will create hardship for small- and medium-sized businesses, Congress should extend the moratorium and not consider a new tax collection burden unless and until it sets objective parameters for significantly simplifying the more than 7,600 existing sales tax codes."

The committee has not yet taken up either of Cox's bills.

Meanwhile, a deal is reportedly is being negotiated by Senate Democrats and Republicans that would consider granting state and local governments more power to tax e-commerce if at least 25 states simplify their sales tax codes.


Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

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