What Is the Internet Tax Freedom Act?


Quick Answer

The Internet Tax Freedom Act, or Permanent Internet Tax Freedom Act, places a permanent moratorium on taxes on Internet access and all e-commerce. As of July 2014, the bill has been passed by the House and in the Senate for consideration.

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Full Answer

According to GovTrack.us, this bill is technically titled H.R. 3086. The initials H.R. stand for House of Representatives, where the bill originated. The bill calls for a permanent extension of the Internet and e-commerce tax moratorium. This means there will be no extra or special Internet or e-commerce taxes imposed on any goods or services purchased online in addition to state or sales tax in perpetuity. Individual state and sales taxes will remain the same; they are determined by each state and are not affected by this bill. This bill amends the moratorium to a permanent status; a previous version gave a finite amount of time for the moratorium, stretching from November 1, 2003 to November 1, 2014. This bill was sponsored and introduced to the House of Representatives by Republican Representative Bob Goodlatte of Virginia, with Representatives Eshoo, Bachus, Cohen and Chabot. It is supported by over 130 other representatives as well, each of whom is listed on the bill.

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