Permanent Internet Access Tax Ban Clears Congress

The Senate passed the Permanent Internet Tax Freedom Act (PITFA), which would permanently bar states and localities from imposing taxes on Internet access. The bill has already passed the House, so now goes to the President's desk. PITFA was included on a Trade Customs Enforcement bill that passed overwhelmingly by a vote of 75 to 20. Paving the way for passage of the Internet tax ban was Senate Majority Leader Mitch McConnell's agreement to consider a version of Internet sales tax legislation in this session of Congress.

Federal Communications Commissioner Ajit Pai responded to the bill’s passage saying, “This is a great day for American consumers. The U.S. Senate passed the Permanent Internet Tax Freedom Act with a strong bipartisan vote. This confirms a national consensus that state and local taxes on Internet access should be taken off the table once and for all. These taxes would make (and in some places already have made) broadband more expensive, reducing consumers’ ability and willingness to get online. This, in turn, would reduce private sector investment in deploying broadband, especially in rural areas, and inhibit entrepreneurship. I hope the bill is enacted soon—Americans need and want the certainty that the digital world will be spared the taxman.”