Internet access tax reform lingers in Senate

 

[June 13, 2015]  By Josh Peterson / June 12, 2015
 
 WASHINGTON, D.C. — A bill permanently banning Internet access taxes is currently lingering in a Senate committee following the unanimous approval of its House counterpart on Tuesday.

The Senate’s Internet Tax Freedom Forever Act, introduced to the upper chamber in February, would permanently ban Internet access taxes at the state and local levels.

The bill, sponsored by Sen. John Thune (R-S.D.), has received the support of the wireless industry, after a failed attempt at a permanent ban last year.

“With today’s vote, Americans are one step closer to keeping their Internet access tax free,” said CTIA-The Wireless Association, the wireless industry’s trade association, in a statement on Tuesday.

“We hope the Senate will follow suit as soon as possible to avoid potentially negative consequences for consumers if ITFA lapses,” said the organization.
 

The Internet Tax Freedom Act, which both the Senate bill and its House counterpart (the Permanent Internet Tax Freedom Act) seek to amend, was first passed in 1998 as a way to encourage Internet adoption during the early days of the consumer Internet.

Congress agreed to temporarily extend ITFA until Oct. 1 this upcoming fall.

As the battle over the FCC’s regulation of broadband continues, however, the matter is even more pressing for the Internet Tax Freedom Coalition — a broad coalition representing center-right organizations, and the wireless, cable, and ecommerce industries.

“Throughout all the discussion that took place while the FCC was considering this change, even Chairman Tom Wheeler identified consumers would be protected from any adverse tax consequences because of ITFA,” said Jay Driscoll, executive director of the ITFA Coalition, in a statement.

“This makes it is even more important for Congress to act now to make ITFA permanent so these pro-consumer tax policies never expire,” said Driscoll.

The FCC’s Open Internet Order went into effect Friday, which places broadband providers under utility-style regulations of Title II of the Communications Act of 1934.