Ban on Internet Tax Clears House Panel

The House Commerce Committee approved a three-year moratorium on new taxes on companies selling products over the Internet. The bill, sponsored by Reps. Christopher Cox (R-Newport Beach) and Rick White (R-Wash.), also would bar the Federal Communications Commission from imposing new charges on customers for Internet access and other online services and from collecting fees from companies that provide these services. The tax moratorium, which doesn’t include state sales taxes, would cover levies on Internet access or online services. The bill, passed by the panel on a 41-0 vote, also would create a congressional study panel to determine how to tax Internet and mail-order sales. President Clinton has endorsed the bill, which has been referred to two other committees. The Senate is crafting its own version of the bill.