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Internet Tax Moratorium

In the late 1990s, as the Internet was gaining traction, some state governments imposed telecommunications taxes on Internet dial-up services.  Congress believed these were inappropriate and could harm a fledgling industry, so it banned state and local governments from imposing taxes on Internet access.  Some already-enacted taxes were grandfathered, however.  That moratorium expired on November 1, 2007, but was renewed for another seven years, and is now set to expire on November 1, 2014.  Congress will need to pass a new bill to extend the moratorium again.

June 27, 2014
On June 19, 2014, the House Judiciary Committee approved H.R. 3086, the Permanent Internet Tax Freedom Act, by a vote of 30-4.