Senate Passes Internet-Tax Ban


Exempting voice calls made over the Internet from the Internet-access-tax ban was key to Senate passage of a compromise bill brokered by Sen. John McCain (R-Ariz.) to extend the moratorium for four years.

The Senate Thursday passed legislation extending an expired moratorium prohibiting new state and local taxes on Internet access by a 93-3 vote.

Points of contention leading up to the final passage of the bill included language clarifying voice over Internet protocol’s exemption from the ban, the duration of a grandfather clause allowing states already taxing to continue and various digressions of the debate into energy and transportation policy.

The House and Senate will now have to formally work out their differences on the issue and send it to the president to sign into law. The House passed a bill permanently extending the ban last year, and President Bush supports a permanent ban.

States News Service