Internet Tax Moratorium Extended for Three Years

Originally published 4^th Quarter 2004

On December 3, 2004, President George W. Bush signed the Internet Tax Nondiscrimination Act (S. 150). The Act reinstates and extends until November 1, 2007, the moratorium on taxes on Internet access and multiple and discriminatory taxes on e-commerce imposed by the Internet Tax Freedom Act (ITFA). The ITFA was signed into law on October 21, 1998, imposing a three-year moratorium on state and local government taxes on Internet access, as well as on any multiple or discriminatory taxes on Internet-based transactions. In 2001, Congress approved the Internet Tax Nondiscrimination Act (H.R. 1552, 107^th Congress), which amended the ITFA by extending the tax moratorium through November 1, 2003. S. 150 is retroactive to November 2003.