Tax moratorium helps ISPs, does little for e-commerce

A new push began this month in Congress to extend legislation that is widely known as an Internet tax moratorium. But despite that moniker, the initial legislation hasn't had a significant impact on e-commerce except in one area: It stops states from imposing sales tax obligations on Internet service providers (ISP).

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Tax Freedom

The Internet Tax Freedom Act took effect in October 1998 and expires this October.
Who It Helped: It banned sales taxes on Internet service providers, except in states already charging sales tax.
New Issue: So-called “bundled” services such as telephony and music, which may be included as part of an Internet-access charge, may also be exempt from sales tax.

The two lawmakers who championed the legislation, Sen. Ron Wyden (D-Ore.) and Rep. Christopher Cox (R-Calif.), recently introduced a bill that would extend the ban on new and discriminatory Internet taxes

This story, "Tax moratorium helps ISPs, does little for e-commerce" was originally published by Computerworld.

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