House Judiciary Subcommittee Passes Internet Tax Nondiscrimination Act

On August 2, the House Judiciary Commercial and Administrative Law Subcommittee passed H.R. 1552, the Internet Tax Nondiscrimination Act, sponsored by Representative Chris Cox (R-California). H.R. 1552 extends for five years the current moratorium on new and discriminatory taxes on the Internet, and makes permanent the ban on Internet access taxes. H.R. 1552 does not encumber the continuation of the necessary moratorium by including "simplification" provisions that would allow the states’ to shift their tax collection burdens to merchants outside of their jurisdictions.

Full passage of the Internet Tax Nondiscrimination Act, as written, will protect against multiple and unfair taxes on the Web while preserving the Supreme Court’s 1992 Quill decision, thereby promoting future growth in electronic commerce.

The full Judiciary Committee will consider the legislation sometime after Congress’ August recess.

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