House Approves Permanent Ban on Internet Use Tax. In a victory for e-commerce, the House of Representatives voted to make permanent the 1998 ban on Internet use taxes imposed by states. The House also voted to require the nine states that impose such taxes (under a grandfather provision) to repeal such legislation. Although this vote does not affect sales tax on the Internet (which is prohibited unless the retailer has a substantial presence in the taxing state), it may prevent (if approved by the Senate) what some had feared to be an unworkable Internet tax scheme that could grind e-commerce to a halt.
Posted by franchiselawblog at September 18, 2003 05:29 PM