Senate Says No to Internet Taxes for 7 More Years
Senate ban on Internet taxes falls short of permanence, protects taxpayers better than House

Washington, DC – With the November 1st expiration date of the Internet Tax Freedom Act quickly approaching, the Senate voted Thursday night on a seven-year extension of the ban on Internet taxation.  While the proposal passed fails to make the current moratorium permanent, the seven year extension is a step forward from the House’s four-year ban.  The Senate bill also makes important pro-taxpayer changes to the House’s narrow definition of Internet access. 

“Senators Wyden, Sununu and McConnell deserve a virtual pat on the back for their work to protect the Internet from the ravaging forces of state and local tax collectors,” said taxpayer advocate Grover Norquist, president of Americans for Tax Reform. “Although a permanent ban would go further to protect taxpayers and the innovation that grows the digital economy, the Senate’s 7 year extension is a victory.”

The Senate version’s changes to the definition as passed by the House take into account a Congressional Research Services report, requested by Sen. Ron Wyden (D-OR), that concluded the narrowed definition could open the door to taxes on some email and other products and services. 

 “When it comes to taxing the Internet, the definition of Internet access should be as broad as possible, the grandfather provisions for the handful of states allowed to tax the Internet should be eliminated and the loophole for states with gross receipts taxes should be closed,” continued Norquist. “I urge the House to swiftly pass the Senate moratorium on Internet taxation, which comes closer to a permanent ban than the House language.”