State and Local Leaders Back Revised Internet Tax Bill

Local leadership groups last week endorsed the direction Congress is taking in advancing Internet tax legislation. Seven associations representing state and local governments last week took part in a press conference designed to endorse the Internet Tax Freedom Act (H.R. 1054), sponsored by Rep. Christopher Cox (R-Calif.). The bill's intent is to preclude state and local taxes "that discriminate against or single out the Internet" (see www.house.gov/chriscox/nettax for more information).

The revamped legislation would limit state and local tax moratoriums to six specific taxes that directly affect electronic commerce. The bill also reduces to three years the length of the moratorium that local governments must observe before instigating Internet-related tax efforts. The bill was expected to advance to the House floor for a vote as early as March 30. The National League of Cities, the National Association of Counties, the National Governors Association, the Council of State Governments, the U.S. Conference of Mayors and the International City/County Management Association all expressed support for the bill.