Senate Ban on Internet Taxes Passes House

WASHINGTON — The House of Representatives today unanimously approved the seven-year ban on Internet access taxes passed by the Senate last week.

The extension must be signed by President Bush before the current moratorium ends Thursday, or it will expire.

The Internet tax moratorium originally was passed in 1998, and this is the third time it has been extended. The House passed a four-year extension on Oct. 16, but senators who wanted a permanent ban passed a seven-year bill last week, sending the seven-year bill back to the House.

"By extending the ban on Internet access taxes for a longer period of time, we give businesses the certainty they need to spend billions of dollars to construct, maintain and update the broadband Internet infrastructure throughout the country," said Rep. Anna G. Eshoo, D-Calif., whose district includes much of Silicon Valley in Northern California. "This legislation will help keep the cost of Internet access down so that all individuals will continue to use the great informational tool that is the Internet."

Eshoo was among the lawmakers who supported a permanent ban, which also was supported by Internet companies such as Google Inc. and Yahoo Inc., and Internet service providers including AT&T Inc., Verizon Communications Inc. and Time Warner Inc.

But local and state governments pushed for the extension to only be temporary, arguing that Congress might need to adjust the legislation in the future as more services move to the Internet.

The bill states that services like telephone and TV provided over the Internet are not exempted from taxes. Local and state governments depend on money from such taxes.

Services related to Internet access, such as instant messaging, email and personal online storage, are included in the ban.

"This action came just in the nick of time," said Dorothy Coleman, vice president for tax policy at the National Association of Manufacturers, which along with the U.S. Chamber of Commerce and other business trade groups, supported a permanent extension. "American businesses of all sizes rely on high-speed, broadband Internet access to remain competitive in the global marketplace."

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

TeamSkeet, MYLF to Launch New Website FamilyStrokes.com

Sister studios TeamSkeet and MYLF are launching a new website, FamilyStrokes.com.

AV Bulletin: Age Verification Hits the Mainstream, Ofcom Sets a Date

Industry stakeholders and free speech advocates have anxiously been awaiting the Supreme Court’s decision in Free Speech Coalition v. Paxton, which could significantly impact state age verification laws around the country. In the meantime, state legislatures continue to weigh and pass AV bills, AV tech providers continue to tout their services, and legal challenges continue to play out in the courts — with some cases on hold pending the SCOTUS ruling in Paxton.

Segpay Names Kristi Greer VP of Sales

Segpay has promoted long-time employee Kristi Greer to the position of vice president of sales.

BranditScan Names Subgirl Newest Brand Ambassador

BranditScan has named content creator Subgirl its newest brand ambassador.

Arcom Reports Age Verification Enforcement Actions Against 5 Adult Sites

French media regulator Arcom released a statement Tuesday detailing recent actions to enforce age verification rules as set forth under France’s Security and Regulation of the Digital Space (SREN) law.

Pineapple Support, Clips4Sale to Host Performers' Partners Support Group

Pineapple Support and Clips4Sale are hosting a free online support group for partners and family members of adult industry professionals.

FSC Mourns the Loss of Board Director Emeritus Mark Kernes

Free Speech Coalition has released a statement regarding the passing of Board Director Emeritus Mark Kernes.

Alexa Creed Launches New Paysite

Creator Alexa Creed has launched a new membership site through MyMember.site.

Choice Talent Management Launches Fan Platform 'ChoiceFilmz'

Choice Talent Management CEO Chris Crisco has launched a new fan platform called ChoiceFilmz.

Dredd to Launch Official Site

Dredd has announced his new website OfficialDreddXXX.com, launching April 20.

Show More