WASHINGTON-The Senate Commerce Committee Thursday passed a permanent ban on Internet access taxes after committee members agreed to debate the more controversial issue of state sales and use taxes at a later time.
“The Commerce Committee blazed a new trail through the mountains of taxes that had previously loomed between consumers and the Internet,” said Steven Berry, senior vice president of government affairs for the Cellular Telecommunications & Internet Association. “Americans access the Internet in a myriad of ways; this legislation ensures that no matter the method, that access will be tax free.”
As the wireless industry moves from voice services to a mobile data environment, complete with m-commerce and even perhaps advertising-sponsored wireless data, the Internet taxation issue has been followed more closely.
The bill passed by voice vote, but there was considerable discussion about the definition portion after senators expressed concern that taxes on telecommunications services could be banned because the language was not clear.
“There is no need for overly broad language,” said Sen. Frank Lautenberg (D-N.J.). “The language is ambiguous. … I am not sure what the rush is.”
The authors of the bill, although disagreeing about whether the language was ambiguous, agreed to tighten it before the bill is debated on the Senate floor.
The current moratorium on Internet access taxes expires in November.
The House Judiciary Committee passed similar legislation earlier this month.
“A permanent moratorium means permanent innovation. Keeping the Internet free of multiple or discriminatory taxes in electronic commerce will help create an environment for innovation and help ensure that electronic commerce remains a vital part of our economy. As policy-makers, we need to encourage the rollout of new Internet services and not stifle innovation by imposing new taxes,” said Treasury Secretary John Snow and Commerce Secretary Donald Evans in a joint statement.
