SALT Report 3775 – On February 11, 2016, the permanent ban on internet access was passed by the senate (the house passed the bill in December). HR 644 Trade Facilitation and Trade Enforcement Act of 2015 is a 157 page piece of legislation containing many other important provisions relating to imports and commerce with the last section (Section 922) making the moratorium on internet access taxation permanent.
SEC. 922. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES AND ON MULTIPLE AND DISCRIMINATORY TAXES ON ELECTRONIC COMMERCE.
(a) Permanent Moratorium.—Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking “during the period beginning November 1, 2003, and ending October 1, 2015”.
(b) Temporary Extension.—Section 1104(a)(2)(A) of the Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by striking “October 1, 2015” and inserting “June 30, 2020”.
There are presently 6 states with grandfathered internet access taxes enacted prior to the first Internet Tax Freedom Act passed in 1998. Those 6 states will be allowed 4 more years (June 30, 2020) to unwind their taxing scheme to a match the permanent intent of this ban. The POTUS is expected to sign the bill into law.
(75 senators – Yea and 20 senators – Nay)
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