Internet Tax Ban Passes Senate

Reuters wrote this morning that the U.S. House of Representatives has passed (402-0) legislation to extend the moratorium on state internet access taxes for seven years.

The U.S. Senate had passed the same exact bill last week, so now the bill goes to President Bush for an expected signature.

Sen. John Sununu, who wrote the 7-year extension as a compromise between a 4-year extension and a permanent ban, said he still hopes to permanently end the tax.

The ban is on internet-only (access and a "bit" tax on information as it transits a taxing jurisdiction) taxes. The ban protects instant messaging and e-mail, including voice and video messaging.

While proponents had argued for a permanent ban as encouraging broadband adoption and economic expansion. Opponents were concerned about local and state government revenue opportunities and the precedent of exemption for VOIP.