Congress will extend net tax moratorium for two years.(moratorium on Internet access and electronic commerce tax)(Brief Article)

Purchasing, November, 2001

Faced with expiration of its three-year moratorium on new Internet access and sales taxes. Congress is moving to extend the ban for two more years. But, in passing their extension bill, House sponsors made it clear they were leaving the door open for Congress to consider lifting the ban once the extension expires. Some Senators, meantime, have vowed to insert language that will allow sales taxes to be imposed if the states can come up with a harmonized taxation system.

Despite expiration of the original moratorium last month, no one expects state or local tax authorities to quickly levy e-commerce sales or Internet service providers (ISPs). Jurisdictions that already had levies on ISPs before the original 1998 ban can continue to maintain those revenue...

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