WASHINGTON, D.C. – The United States Senate tonight approved an extension of the Internet tax moratorium for seven years.  The moratorium to protect consumers was established as part of the Internet Tax Freedom Act in 1998.  Congress has twice extended the moratorium to prohibit these taxes on consumer Internet access.  The Act prevents states and localities from taxing Internet access and is currently set to expire on November 1, 2007. The moratorium affects many services that American consumers have come to rely on, including wireless transmission devices, cable modems, and Internet service over phone lines.  The House passed a four year extension earlier this month.

“I am pleased to see bipartisan support for extending the Internet tax moratorium,” said Senator Ted Stevens (R-Alaska).  “The Internet has provided a powerful economic boost to our nation, and has become an important everyday tool for millions of Americans.  By keeping Internet access tax-free and affordable, Congress can encourage Internet use for distance learning, telemedicine, commerce and other important services.”

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