Spotlight: Wilson Signs Off on Tax Moratorium for Net Activity

Gov. Pete Wilson has signed a bill that forbids any new taxes on Internet activity for the next three years. The California Internet Tax Freedom Act is intended to help companies dependent on the Internet create new products, services and jobs. The new state act imposes a moratorium on taxes for any Internet activity, including online purchases and server accounts. Internet companies that are based in California but do manufacturing in other states or ship their products will be exempt from California sales tax.