The 1998 Internet Tax Freedom Act is a United States law authored by Representative Christopher Cox and Senator Ron Wyden that established national policy regarding federal and state taxation of the internet, based upon its unique characteristics as a mode of interstate and global commerce uniquely susceptible to multiple and discriminatory taxation. The law prohibits state and local governments from imposing taxes directly on the internet or online activity, such as email taxes, internet access taxes, bit taxes, and bandwidth taxes. It categorizes taxes targeted specifically to the internet itself or to online commerce as “discriminatory.” Discriminatory taxes are outlawed.[1][2]
When it was originally signed into signed into law as Title XI of Pub.L. 105-277[3] on October 21, 1998 by President Bill Clinton, the Act imposed a ten-year moratorium on discriminatory and multiple taxation of the internet and electronic commerce. The law was subsequently extended on multiple occasions by Congress, and on February 24, 2016, it was made permanent as Pub.L. 114-125, §922(a).
In both its original and permanent form, the law's stated purpose is to promote and preserve the commercial, educational, and informational potential of the Internet.[4][5]
- ^ Brief of Chris Cox as Amicus Curiae, pp. 1-2, in South Dakota v. Wayfair, 138 S. Ct. 2080 (2018), https://www.supremecourt.gov/DocketPDF/17/17-494/23030/20171207151532703_Amicus%20Brief.pdf.
This article incorporates text from this source, which is in the public domain.
- ^ "Public Law 105-277, Title XI" (PDF).
- ^ Pub. L. 105–277 (text) (PDF)
- ^ Robinson, Sal (October 23, 2013). "Illinois Supreme Court rules against 'Amazon tax'". Brooklyn: Melville House. Retrieved November 7, 2013.
- ^ SCHREIBER, SALLY (October 21, 2013). "Internet Tax Freedom Act preempts Illinois click-through nexus law". Durham: Journal of Accountancy. Retrieved November 7, 2013.
