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January 31. 2013 7:54PM

Ayotte introduces bill to ban Internet taxes permanently

WASHINGTON - U.S. Sen. Kelly Ayotte, R-N.H., introduced legislation Wednesday that would permanently extend the current ban on Internet access taxes.


The Permanent Internet Tax Freedom Act would prevent state or local governments from imposing new taxes on Internet access, and prohibit multiple or discriminatory taxes on e-commerce.

"E-commerce is thriving largely because the Internet is free from burdensome tax restrictions. Unfortunately, tax collectors see it as a new revenue source, and they must be stopped," said Ayotte, a member of the Senate Commerce Committee.

The Internet Tax Freedom Act, originally enacted in 1998, was designed to prevent state taxes on Internet access, to ensure that multiple jurisdictions could not tax the same transaction, and to ensure that commerce online was not singled out for discriminatory tax treatment.

Congress has extended the act multiple times, but it is scheduled in expire in November 2014.

Last week, Ayotte announced she is working with Sen. Ron Wyden, D-Ore., to reintroduce a resolution expressing the sense of the Senate against any federal legislation that would give states the authority to impose sales tax collecting requirements on Internet businesses and entrepreneurs.


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