The Senate passed a bill extending the moratorium on State’s imposing taxes on taxing internet service. Congress has a similar bill and a compromise is expected as the main difference is the amount of time this moratorium is to run. This moratorium, first put in place in 1998 was due to expire Nov1, 2007. Depending on the compromise, it will be extended again between 4 and 7 years.
I was quite surprised to see the moratorium extended. Many states are writing their budgets in red ink and looking for ways to generate more revenue. I question why after 9 years of playing with a moratorium they didn’t just pass a law making it illegal for states to tax internet service. But, in typical political fashion, they want to leave a back door open.
I’m sure with this in the news the world will be flooded with e-mails about email taxes again.
[tags]internet tax,chris pirillo,lockergnome,miiikeee[/tags]