Legislative update: House approves permanent internet tax ban
House approves permanent internet tax ban
The House last evening approved, by voice vote, H.R. 235, the Permanent Internet Tax Freedom Act.
H.R. 235 would make permanent a moratorium on state and local taxation of internet access and on multiple or discriminatory taxes on electronic commerce.
The House passed H.R. 235 under suspension of the rules—a procedure that requires the vote of at least two-thirds of voting members to pass a bill.
The Internet Tax Freedom Act currently:
- Prohibits state and local governments from imposing taxes on internet access and some taxes on electronic commerce until October 1, 2015.
- Contains “grandfather rules” that allow some state and local governments to continue taxing internet access if such tax was generally imposed and actually enforced before October 1, 1998. The grandfather rules generally apply until October 1, 2015.
H.R. 235 would make permanent the prohibition on taxes on internet access and certain taxes on electronic commerce, but would not extend the grandfather rules.
The Senate has not scheduled action on similar legislation, S. 431 the Internet Tax Freedom Forever Act.
© 2023 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://kpmg.com/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.
Connect with us
- Find office locations kpmg.findOfficeLocations
- Social media @ KPMG kpmg.socialMedia
Stay up to date with what matters to you
Gain access to personalized content based on your interests by signing up today