Tag Archive for ITFA

Internet Tax Freedom Act Extended

The Internet Tax Freedom Act (ITFA), originally enacted in 1998 (P.L. 105-277, 10/21/98) and renewed twice, was set to expire on November 1, 2014. Its original expiration date was October 21, 2001 and then November 1, 2007. The ITFA prohibits state and local governments from imposing taxes on Internet access fees (unless already imposed and enforced before 10/1/98) or imposing any multiple or discriminatory taxes on electronic commerce.

H.J. Res 124, Continuing Appropriations Resolution 2015, was signed into law on 9/19/14 (P.L. 113-164). It provides funding to keep the government running until 12/11/14 and extends the ITFA to that date as well. This resolution was passed in the House on 9/17/14 (319-108) and in the Senate on 9/18/14 (78-22). Read More

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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