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).


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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