Permanent ban on Internet taxes a possibility.

Many panelists and lawmakers have been in discussions recently to decide what the implications of trying to establish an Internet tax will have on electronic commerce. A push for the enactment of the Internet Nondiscrimination Act (H.R. 49) has been started as there is some concern that imposing an internet tax could hinder the use of the internet for commerce purposes. The Internet Tax Freedom Act, set in motion in 1998, will expire in November of 2003 and with the Nondiscrimination Act, there is an interest in preventing unfair tax treatment of Internet sales, not necessarily preventing the online sales tax as a whole. (House Judiciary Subcommittee on Commercial and Administrative Law Hearing, Washington, April 1, 2003, and interview with Harley T. Duncan following hearing.)

Posted on April 15, 2003