Extension of Internet Tax Access Ban Passes House

November 19, 2004

WASHINGTON, D.C. - Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, praised House passage today of legislation that will extend for another four years, the ban on Internet access taxes and prohibit states and localities from imposing multiple and discriminatory taxes on electronic commerce. The Internet Tax Nondiscrimination Act, S. 150, was approved by a voice vote. It has already been approved by the Senate so it now heads to the President for signature.

“The Internet has transformed the way Americans live, work, play, and shop,” Dreier said. “It’s absolutely critical that we allow this incredible economic engine continue to develop without burdensome taxes at all levels. The American consumer is the real winner today. Internet commerce is moving all of us into a 21st century economy and all it entails - more choices, quicker delivery, and price competition.”

The House of Representatives unanimously passed a bill last year that would have permanently prohibited Internet access taxes. Opposition in the Senate, however, resulted in the temporary extension included in S. 150. The Internet Tax Nondiscrimination Act is retroactive to November 1, 2003. It will expire on November 1, 2007.