Tag Archive for H.R. 3086

Internet Tax Freedom Act – Why Not Let It Expire?

On June 18, 2014, the House Judiciary Committee passed H.R. 3086 to make the Internet Freedom Act (ITFA) permanent. Otherwise, it expires on November 1, 2014. It has expired before. The main reason offered to extend it years ago was to help make sure the Internet grew. I think it would have grown even without the Internet Tax Freedom Act (ITFA). The ITFA is a federal prohibition on tax actions of state and local governments. The ITFA says that state and local governments cannot impose tax on Internet access fees. When enacted back in 1998 (P.L. 105-277), very few states even imposed such taxes and they were grandfathered in. The ITFA also prohibits discriminatory taxes on e-commerce. I think that existing laws, such as the commerce clause, already covered that prohibition.

So, basically, it prohibits state and local governments from doing something they likely Read More

Written by | Posted in Sales/Use Tax

The House Judiciary Committee Approves Legislation to Permanently Prohibit State Taxes on Internet Access

On June 18th the House Judiciary Committee approved H.R. 3086, entitled “The Permanent Internet Tax Freedom Act” (hereinafter “PITFA”), by a large margin vote of 30 to 4. The bipartisan bill has more than 220 cosponsors. The legislation would make permanent the provisions of the Internet Tax Freedom Act, which temporarily bans states from taxing Internet access or placing multiple or discriminatory taxes on e-commerce. Most states currently do not tax Internet access, although several states do such as Ohio and Texas, which were grandfathered under the original legislation. The new bill would remove that exemption. By striking the 2014 expiration date from the bill, the PITFA makes the suspension permanent instead of requiring reauthorization every few years.

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Written by | Posted in State And Local Tax (SALT)