NGA Urges Congress to Pass 4-Year Moratorium on Internet Access Taxes

Yesterday, the National Governors Association (NGA) called on the House of Representatives to adopt legislation passed last week by the Senate that puts in place a four-year moratorium on Internet access taxes.

The Senate-passed bill, NGA officials said, strikes the appropriate balance between the interests of states, consumers and industry. The Senate bill varies from legislation passed by the House that would create a permanent moratorium with a broad definition of Internet access. That expanded definition would cost states billions of dollars annually by creating an unprecedented tax-free zone for telecommunications services.

"A temporary Internet tax moratorium makes sense. This allows the Congress, consumers and the private sector to revisit the issue and adjust to emerging technologies and market realities," said NGA Executive Director Ray Scheppach, noting that the original 1998 moratorium was temporary, in part for this reason.

"Given today's ever-changing telecommunications landscape and the billions of dollars at stake, it is vitally important to avoid the unintended consequences a permanent moratorium would have generated," stated Scheppach. "The House should not delay by convening a conference committee. They should follow the Senate's lead and quickly reinstate the moratorium."