Web Sites Lose Illegal-Tax Claim

Web site operators lost a U.S. Supreme Court bid to overturn $62 million in taxes that Network Solutions Inc. collected when it was the official government registrar of Internet addresses. The justices refused to review a lower court ruling upholding fees Network Solutions collected from individuals and businesses to assign Internet addresses. Web site operators contended that $30 of the $100 fee charged by Network Solutions from 1995 to 1998 was an illegal tax. Network Solutions shares climbed $42.56, nearly 18%, to close at $280.31 on Nasdaq, even though the Supreme Court decision does not have any direct financial effect on the company.