House Approves 7-Year Ban on Internet Tax
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Wednesday, October 31, 2007
The House approved a bill yesterday to bar states from taxing Internet access through 2014, clearing the way for President Bush to sign the measure into law before the current ban expires tomorrow.
The unanimous vote resolved a conflict with the Senate, which last week called for the longest-ever Internet-tax ban by passing the seven-year ban. The House had voted Oct. 16 to prohibit the taxes for four years.
House Speaker Nancy Pelosi (D-Calif.) urged Bush to sign the bill immediately.
Since 1998, a federal law has prohibited cities and states from taxing most forms of Internet access. The ban was last extended in 2004. Groups representing state and local officials had pushed for a four-year ban.
High-speed Internet service providers AT&T, Verizon Communications and Comcast, and Web companies such as Google, had sought a permanent ban but welcomed the seven-year renewal.
The legislation would allow states and cities to continue taxing all forms of telephone and pay-television service, even if carriers bundle those services with Internet access.
Most House Republicans wanted a permanent tax ban and "will continue to fight" for one after the seven-year renewal expires, Rep. Roy Blunt of Missouri, the second-highest-ranking Republican in the House, said in an e-mailed statement.
