House OKs Extension of Net-Access Tax Ban
The House approved continuing a ban on Internet access taxes for two years, a victory for state and local governments that opposed a longer moratorium favored by AOL Time Warner Inc. and other companies.
The ban, which expires Sunday, prevents state authorities from imposing taxes that target Internet service providers such as AOL Time Warner’s America Online service. The bill doesn’t address sales taxes on Internet commerce, which some lawmakers said will have to be dealt with later.
Backers said the bill, approved by voice vote, will protect information technology firms from taxes that would cut into profits while they are struggling with a slowing economy. The ban was first passed in 1998.
The Senate has yet to clear its own version of the bill.
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