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Senate OK's Net Access Tax Ban

by Mike Godfrey, for LawAndTax-News.com, Washington

03 May 2004

The US Senate on Thursday voted 93-3 to restore a ban on internet access taxes imposed by state and local governments.

The House of Representatives had already voted last year to impose a permanent ban on the taxation of internet access services, but the bill stalled in the Senate following pressure from state governors.

According to an Associated Press report, the terms of the bill approved last week stipulate that the the ban does not apply to the taxation of Voice over Internet Protocol (VoIP) services, although it does apply to high speed internet connections.

However, states which started taxing internet access prior to the imposition of the original ban in 1998 will be allowed to continue imposing the levies.

The House and Senate must now reconcile their differences on the issue before the bill can become law.

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