On November 28, President Bush signed into law legislation that extends for two years the current moratorium on internet taxes (H.R. 1552). The Senate passed the measure on November 8, while the House passed it on October 16.
The “Internet Tax Nondiscrimination Act” extends the ban on internet taxes to November 1, 2003, providing additional time for states and the federal government to address larger issues concerning taxation of electronic commerce. Any ILMA members who engage in electronic commerce will be affected by this development.
In his signing statement, President Bush noted that “the internet is an innovative force that enables such applications as distance learning and precision farming. Government must do its part to make access to these services affordable. It should not raise costs through additional taxation. Extending the moratorium is particularly important during this crucial holiday shopping season. Online spending is estimated to account for over 15 percent of total holiday purchases this year. H.R. 1552 will keep access to e-commerce services affordable. This law will be a big help to those Americans who shop from home because they are unable to travel to stores and malls.”
