House votes for permanent Net tax ban
Last modified: September 17, 2003, 8:58 AM PDT
The U.S. House of Representatives voted on Wednesday to make a ban on Internet use taxes permanent and require nine states to repeal existing taxes on access fees.
Lawmakers passed a bill by voice vote that would cement a ban on Internet access and traffic taxes currently due to expire in November, and remove a grandfather clause that allows a handful of states to levy taxes that were in place before the ban was first passed in 1998.
The tax moratorium applies to all methods of Internet access, including pricier high-speed links taxed by some states.
However, the ban does not apply to online sales taxes, which are already prohibited under a Supreme Court decision unless the retailer has a substantial in-state presence.