Internet Tax Freedom Act Extended… Temporarily
The Internet Tax Freedom Act (ITFA) has been extended through December 11, 2014 following President Barack Obama signing H.J. Res. 124, the Continuing Appropriations Resolution, 2015 (Public Law 113-164) on September 19, 2014. ITFA, which bans federal, state, and local governments from taxing Internet access charges, as well as from assessing multiple or discriminatory taxes on electronic commerce, was set to expire on November 1, 2014, H.J. Res. 124, Continuing Appropriations Resolution, 2015, 09/17/2014.
The permanence of ITFA is uncertain. In July, the House passed the Permanent Internet Tax Freedom Act. The Senate, however, stalled over attempts to tie the Marketplace Fairness Act (MFA) to the ITFA. Congress’ decision will be closely watched because the days of unburdened Internet access may be replaced by a complicated patchwork of federal, state, and local taxes.