… ON THE PERMANENT INTERNET TAX MORATORIUM PROPOSED BY THE
INTERNET TAX NON-DISCRIMINATION ACT.
The Internet Tax Non-Discrimination Act promotes the growth
and expansion of the Internet by ensuring that all Americans have unencumbered
access to the information superhighway.
Rhett Dawson, president, Information Technology Industry
[The act] by preempting a variety of
activities that go beyond access by customers to the Internet and by expanding
the scope of the preemption to income, property and other business taxes
will reduce revenue from current taxes levied by the 50 states, the District of
Columbia and local governments a minimum of $4 billion and up to $8.75 billion
annually by 2006.
Revenue Impact on State and Local Governments of
Permanent Extension of the Internet Tax Freedom Act, published by the
Multistate Tax Commission
Much more serious in
our view is the expansion of the definition of Internet access to include
telecommunications services. This could have a dramatic impact on virtually all
state and local governments that collect any kind of tax on telecommunications
companies utility taxes, franchise taxes, gross receipts, property and other
taxes could be called into question.
All of this in a bill that has been touted as only making
permanent the current temporary ban on taxes on Internet access charges.
Ed Harrington, president, Government Finance Officers
|Information Technology Industry Council www.itic.org
Multistate Tax Commission www.mtc.gov
Government Finance Officers Association www.gfoa.org