Bill to Ban Internet Access Taxes Sent to President Bush

Internet access taxes be gone. The House on Tuesday accepted changes made by the Senate to a bill that would ban Internet access taxes for an additional seven years. The bill now heads to President Bush, who is expected to sign the bill.

At issue is the Internet Tax Freedom Act (ITFA), a bill enacted in 1998 that temporarily prevented states and localities from imposing taxes on Internet service. The law was renewed in 2001 and 2004, but is set to expire once again on Nov. 1, 2007. The House recently passed a bill (H.R. 3678) that would extend that ban for another four years, but a Senate amendment lengthened that period of time to seven years.

Republicans and Democrats have been battling for weeks over how long the moratorium should last. The GOP generally wants the ban to become permanent, but Democrats have expressed concern over imposing a permanent ban on something they consider to still be evolving. The seven-year ban is considered a compromise between the two sides; expect the permanent ban chatter to re-emerge in 2014.





Telecom groups were quick to champion the vote.

"Today's House vote ensures that American consumers will continue to enjoy another seven years of Internet access without the threat of being taxed for going online," Walter B. McCormick, Jr., said in a statement. "This is the longest extension of the Internet tax ban ever enacted into law and it clearly sends the right message that consumers should never be taxed simply for accessing the Internet."

"This is an important and critical step because it means that broadband services will continue to be affordable for all Americans," said Steve Largent, president and CEO of CTIA, the wireless association.