VA Governor Urges Extension of Internet Tax Moratorium

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Gov. James Gilmore, R-VA, the former chairman of the National Advisory Commission on Electronic Commerce, urged Congress over the weekend to act promptly to extend the Internet sales tax moratorium, which lapsed on Sunday.

Gilmore's call follows a letter urging all senators and representatives to extend the Internet Tax Freedom Act moratorium on Internet access and multiple and discriminatory taxes on remote sales when they return to Washington this week. The letter was also signed by Govs. Jane Swift of Massachusetts and Bill Owens of Colorado.

"The Internet tax moratorium is critical to maintaining stability in the technology economy," Gilmore said. "Extending the Internet tax moratorium permanently will not only stimulate economic activity but also aid in the economic recovery of the United States."

The three governors advocate extension of the moratorium to instill confidence in the technology sector and among consumers during the economic downturn.

Last week, the House approved H.R. 1552, which provides a two-year extension of the tax moratorium. The Senate last week failed to act on extending the moratorium.

A spokeswoman for Gilmore said action on the moratorium is slated to take place this week.


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