Internet Taxes - Current Law and Future Prospects

Current Law and Future Prospects

The 1998 Internet Tax Freedom Act was authored by Representative Christopher Cox, R-CA and Senator Ron Wyden, D-OR and signed into law on October 21, 1998 by President Bill Clinton in an effort to promote and preserve the commercial potential of the Internet. This law bars federal, state, and local governments from taxing Internet access and from imposing discriminatory Internet-only taxes such as bit taxes, bandwidth taxes, and e-mail taxes. The law also bars multiple taxes on electronic commerce.

The bill has been extended three times by the United States Congress since its original enactment and was last renewed on October 30, 2007 for 7 years.

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