Dreier Votes to Extend Ban on Unfair Internet Taxes

October 16, 2001

WASHINGTON - Pointing to continued growth on the Internet as key to economic recovery, Congressman David Dreier (R-CA), Chairman of the House Rules Committee, voted today to extend a moratorium on Internet taxation. The Internet Tax Nondiscrimination Act, H.R. 1552, was approved by the House today by a voice vote.

“As we work to get our economy back on track, we need to ensure that access to the information superhighway remains free and unfettered,” Dreier said. “The Internet was the engine of our economic growth during the last decade, and it will continue to be a key marketplace for entrepreneurs and innovators. The government shouldn’t be preventing its future growth. Passage of this legislation today means that it will be free to flourish in the future.”

The Internet Tax Nondiscrimination Act extends the moratorium on access fees, new taxes and discriminatory taxes on the Internet to November 1, 2003. The extension of the moratorium means that more than 10,000 state and local agencies with taxing authority over the Internet will continue to be barred not only from taxing Internet access, but also from subjecting buyers and sellers of electronic commerce to taxation in multiple states, or discriminating against Internet commerce with taxes that don’t apply off-line.

“With the challenges currently facing the high tech sector and entrepreneurs working to make the Internet even more efficient and useful for consumers, now is not the time to change the ground rules for Internet taxation,” said Dreier. “The moratorium has worked successfully in the past, we shouldn’t change course now. I hope the Senate will act quickly on this important legislation and keep the Internet free from discriminatory taxation.”