Senators look to extend ban on Internet taxes

Today two Senators introduced a bill that would ban federal, state and local governments from taxing Internet access. The current version of the Internet Tax Freedom Act, originally enacted in 1998, is set to expire in November 2014. After that, the bill from Republican Sens. Kelly Ayotte (N.H.) and Dean Heller (Nev.) would extend the ban indefinitely.

"E-commerce is thriving largely because the Internet is free from burdensome tax restrictions. Unfortunately, tax collectors see it as a new revenue source, and they must be stopped," Ayotte said in a statement. "This legislation will provide certainty to the marketplace, helping the Internet continue to be a driving force for jobs and growth."

However, the newly introduced bill doesn't affect the recent taxes that Californians have seen when they purchase goods on Amazon.com, since it only bars federal, state, and local agencies from taxing Internet-only services. As of last fall, California began charging between 7.25 percent to 9.75 percent on online purchases.

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