The House of Representatives has passed H.R. 1552, a bill which extends the moratorium on states and localities taxing Internet sales and access for another two years, to November 2006.
The Direct Marketing Association voiced its approval of the House’s action.
“While The DMA believes the moratorium should be extended for a period of five years or more, it is absolutely critical that this legislation not be allowed to expire on Oct. 21,” said DMA president H. Robert Wientzen, in a statement. (He noted that the bill would help foster growth in the online marketing industry.)
The Senate, which is working on similar legislation, will have to act quickly because of the Sunday expiration date.
Earlier, Rep. Christopher Cox, the bill’s main sponsor, said this bill would prevent more than 10,000 state and local agencies “from taxing Internet access but also subjecting buyers and sellers of electronic to taxation in multiple states or discriminating against Internet commerce with taxes that don’t apply offline.” (DIRECT Newsline, Oct. 12).