Share

US votes for ban on internet access taxes

Washington - The House of Representatives voted on Tuesday to permanently bar US states from taxing internet access and replace a 17-year-old temporary ban that had been extended multiple times and was due to expire on October 1.

The bipartisan measure, passed by voice vote, also bans discriminatory taxes on e-commerce.

"This legislation prevents a surprise tax hike on Americans' critical services this fall," said the bill's sponsor, Republican House Judiciary Committee Chairman Bob Goodlatte.

A similar bill introduced in the US Senate has 49 co-sponsors, including 11 Democrats, likely enough to secure passage.

But the House's "Permanent Internet Tax Freedom Act" fails to address thorny questions over state sales taxes on goods and services sold via the internet.

Currently, 45 states have imposed sales taxes on online purchases, but only some states require e-tailers to actually collect these revenues from customers.

Brick-and-mortar retailers have pushed for years for legislation that ensures full and consistent collection of online sales taxes in all 45 states. They argue that the current, patchwork system gives many online merchants a pricing advantage over traditional stores that must, under law, collect taxes from customers.

Online shoppers are supposed to submit payment for tax due, but almost no one does. As a result, many online purchases are effectively tax-free and cheaper than in-store purchases.

A House Judiciary Committee aide said lawmakers were working on a proposal to address the sales tax issue but declined to provide further details.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders