President Bush Signs Continuation of Ban on Internet Access Tax

On October 31, 2007, President Bush signed into law a seven-year extension of the moratorium on state and local taxes on internet access. The measure will amend the Internet Tax Freedom Act Amendments Act of 2007, includes a new definition of “internet access” which means a service that enables users to connect to the Internet to access content, information, or other services. The grandfather clause that permits Internet access taxes that were generally imposed and actually enforced prior to October 1, 1998, is also extended until November 1, 2014. However, the grandfather clause will not apply to any state that has, more than 24 months prior to the enactment of this legislation, repealed its tax on Internet access or issued a rule that it no longer applies such a tax. [H.R. 3678, as agreed to by the U.S. House of Representatives, October 30, 2007]

Posted on March 30, 2008