Internet Tax Bills in the 105th Congress

Publication Date: August 1998

Publisher: Library of Congress. Congressional Research Service

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Research Area: Media, telecommunications, and information

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Abstract:

This report tracks the evolution and content of the Internet tax freedom bills. In general, the bills would impose a federal moratorium on the ability of state and local governments to impose taxes on certain aspects of the Internet and would establish a temporary federal commission to study selected issues and make policy recommendations. This report traces the bills introduced in the 105th Congress, including H.R. 1054, H.R. 3529, H.R. 3849, H.R. 4105 (passed by the House on June 23, 1998), and S. 442, S. 442 as approved by the Commerce Committee, S. 442 as amended by the Finance Committee, and S. 1888. The report presents background on issues of concern to different interest groups regarding state and local taxation of the Internet; identifies the major components of the legislation and compares the positions taken in each of the bills; explains reactions to the proposals; and summarizes congressional activity to date on each of the bills. This report will be updated as events warrant. For a description of the main elements of H.R. 4105, see CRS Report 98-597, Internet Tax Freedom Act: H.R. 4105 as Passed by the House, by Nonna A. Noto.