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U.S. House of Representatives Passes Four-Year Extension of Internet Tax Ban

6:30 am on October 18, 2007 | Category: Internet, Regulation, Telecom Services

The U.S. House of Representatives has approved a piece of legislation extending the current ban on state-imposed internet taxes for a further four years, but stopped short of legislating a permanent extension.

Representatives voted 405-to-2 to continue the moratorium, which exempts DSL, cable broadband, and other ISP services from sales taxes, and is designed to make home internet access more accessible. It was set to expire on November 1.

The four-year extension proposal provoked criticism from some lawmakers, especially Republicans, who argued that a permanent ban on internet taxes was necessary to increase investment in the broadband sector. Some Republicans accused House Democratic leaders of deliberately blocking a vote on a permanent moratorium.

“It would have passed by an overwhelming margin. It would have supplanted the legislation that we’re having here on the floor today,” said Virginia Republican, Bob Goodlatte, before the House vote.

Attention now shifts to the U.S. Senate, where members of the Energy and Commerce Committee have been vigorously disputing whether to make the ban temporary or permanent.

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