Internet Taxation Overview
Issues and Proposed Solutions
The Internet Tax Freedom Act was enacted on October 21, 1998,as part of the omnibus Consolidated and Emergency SupplementalAppropriations Act. The Act imposed a three-year moratorium onthe ability of State or local governments to impose new taxeson "Internet access services" or to impose any "multipleor discriminatory taxes on electronic commerce." The moratoriumis scheduled to expire October 2, 2001. The Act expressed Congress’sopposition to imposing new Federal taxes on the Internet and tointernational taxes, tariffs, and regulation of the Internet andtelecommunications.The Act also created the Advisory Commission on ElectronicCommerce to study a variety of issues related to the taxationof electronic commerce…
