CARPER & ALEXANDER COMMEND HOUSE FOR EXTENDING MORATORIUM ON STATE & LOCAL TAXES ON INTERNET ACCESS

Posted on October 30, 2007

U.S. Sens. Tom Carper (D-Del.) and Lamar Alexander (R-Tenn.) issued the following statement commending the passage today by the House of Representatives of Internet tax legislation (H.R. 3678, the Internet Tax Freedom Act Amendments Act of 2007) which extends for seven years the moratorium on state and local taxes on Internet access: “House passage of this Internet tax legislation today clears the way for presidential approval of this common sense agreement that protects both Internet users and state and local governments. “This bipartisan legislation continues the moratorium on Internet taxation, prevents unfunded federal mandates on cities and states, updates the definition of Internet access, and allows Congress to review after seven years the continued need for an Internet moratorium.” • Late last Thursday, Oct. 25, the Senate passed the same legislation, a compromise crafted by Sens. Carper and Alexander, which passed the Senate by unanimous consent. • In May, Sens. Carper and Alexander introduced S. 1453, a bill to update the definition of Internet access and extend the Internet tax moratorium for four years. A bipartisan agreement was struck late last week with Sen. John Sununu (R-N.H.) to extend the Internet tax moratorium for seven years, and that legislation was passed under the suspension rules in the House today. • The Internet tax ban – first passed in 1998 and last updated in 2004 – was set to expire on Thursday, Nov. 1, but this final legislation will now go to the President for his signature.