On Tuesday, June 9th The House of Representatives passed H.R. 235 entitled the “Permanent Internet Tax Freedom Act” (hereinafter “PITFA”) by voice vote permanently banning states from taxing internet access or placing multiple or discriminatory taxes on e-commerce. It should be duly noted that the PITFA legislation would simply remove the current end date of October 1st of 2015 from the Internet Tax Freedom Act which was originally signed into law in 1998.

PITFA’s bipartisan legislative intent is clearly aimed at keeping the current moratorium on taxes on internet access in place and extending it indefinitely. As a historical synopsis, Congress passed a temporary moratorium on multi-state taxes collected for internet access back in 1998. The ban has been extended numerous times in the 17 years since, Read More

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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