States Watching Congress on Internet Access Taxes

Americans in most states have paid no taxes on Internet access for 16 years, thanks to a federal law banning states and local governments from collecting such taxes.

Now, with the Internet Tax Freedom Act (ITFA) set to expire on Nov 1, state and local governments are watching closely to see if Congress will once again extend the tax moratorium, which was first enacted in 1998 and since renewed three times.

The online sales tax could reap $23 billion in revenue for the states.