Senate Passes Internet Access Tax Moratorium

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The U.S. Senate passed the Internet Tax Non-Discrimination Act by a 93-3 vote last week.


The bill would ban taxes on Internet access through Nov. 1, 2007. The Senate bill must now be reconciled with the House of Representatives version, which was passed in November and would ban taxes on Internet access permanently.


The Senate version covers DSL connections, which many states and local governments taxed during the original moratorium. In the new bill, DSL taxes would have to be phased out within two years. However, the bill excludes Voice over IP services that let consumers use the Internet to make telephone calls.


"We are pleased that the Senate has passed this important legislation," said Jerry Cerasale, the Direct Marketing Association's senior vice president, government affairs. However, he said, "it remains our hope that the final resolution of this issue will be a permanent moratorium on Internet access taxes."


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