U.S. House Committee Approves Net Tax Bill

WASHINGTON (05/04/2000) - The U.S. House Judiciary Committee today approved a bill that would extend for five years a moratorium on new and discriminatory taxes on Internet sales.

The committee voted 29 to 8 in favor of the Internet Nondiscrimination Act, which was proposed in February. House Majority Leader Dick Armey, a Texas Republican, immediately scheduled a vote on the legislation in the House of Representatives next week, said Paul Wilkinson, a spokesman for Representative Chris Cox, a Republican from California, and one of the sponsors of the bill.

The original version of the Internet Nondiscrimination Act would have made the current moratorium permanent. [See "Extension of Internet Tax Moratorium Proposed," February 29] The bill was amended today, however, in favor of a five-year extension, which would have the moratorium expire in October 2006.

The committee decided to extend the moratorium for five years based on a recommendation of the Advisory Commission on Electronic Commerce, which studied the issue and reported to Congress last month. [See "U.S. Congress Receives Net Tax Report," April 12.] A three-year moratorium took effect in October 1998 under the Internet Tax Freedom Act. It prevents federal, state, cities and other local governments from implementing any new or discriminatory taxes on Internet sales.

The House can be reached at http://www.house.gov/.

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