Internet Tax Act Passes House Panel

A subcommittee of the House Judiciary Committee voted yesterday to make permanent the Internet Tax Non-Discrimination Act, which is due to expire in November. It goes to the full committee for a vote.

It prohibits taxes on Internet access and discriminatory taxes that treat Internet purchases differently from other types of sales. It does not address the issue of online sales taxes.

The measure, H.R. 49, was introduced in January by Rep. Christopher Cox, R-CA, and Sen. Ron Wyden, D-OR. Cox and Wyden wrote the original law, the Internet Tax Freedom Act, which was enacted in 1998 and expired in October 2001. The two then wrote the Internet Tax Non-Discrimination Act, which President Bush signed into law in November 2001.

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