WASHINGTON -- U.S. House and Senate negotiators have reached agreement on a four-year extension of the expired federal moratorium on Internet taxes. The measure is expected to be approved by week's end, reinstating a ban that lapsed a year ago but lawmakers had been unable to come to agreement on how best to address.
The ban affects only Internet services, not purchases, blocking state and local officials from imposing taxes on Internet connections and related services.
However, states that began collecting Internet taxes prior to the initial inception of the ban in 1998, can continue to do so.
Although the House approved a permanent ban last year, it did not have enough support to pass the Senate.
Along with the temporary extension, the agreement also clarified the ban does not impact new technologies that use the Internet, such as telephone service.
