Ayotte Renews Call to Keep Internet Tax-Free

Press Release

On the Senate floor today, U.S. Senator Kelly Ayotte (R-NH) urged her colleagues to pass the House-passed Permanent Internet Tax Freedom Act (ITFA), which would permanently extend the current ban on Internet access taxes. The current tax moratorium is set to expire on October 1 and failure to renew the measure could cost taxpayers close to $15 billion annually. Ayotte called for the Senate to extend the tax moratorium without attaching an online sales tax provision - similar to the Marketplace Fairness Act - that would harm New Hampshire's Internet retailers.

"Unfortunately...some see this extension of the moratorium on internet taxation as an opportunity to attach another piece of legislation that would burden our online businesses and would tremendously disadvantage a state like my home state of New Hampshire, that has made the legislative decision not to have a sales tax...There's nothing fair about this Act, when it comes to our online businesses having to collect taxes for nearly [10,000] taxing jurisdictions. You can imagine the bureaucratic nightmare that would occur," said Ayotte.

The original ITFA, enacted in 1998, prevented state and local jurisdictions from imposing new taxes on the Internet and multiple and discriminatory taxes on e-commerce. Congress has reauthorized ITFA five times, and earlier this year, Senator Ayotte helped reintroduce the bipartisan Internet Tax Freedom Forever Act, which would permanently extend the current ban on Internet access taxes.

Ayotte has also fought to protect New Hampshire Internet businesses from online sales tax requirements, and she has led congressional opposition to the mis-named "Marketplace Fairness Act," which would require Internet businesses to collect sales taxes for nearly 10,000 jurisdictions across the country.

Many New Hampshire businesses oppose the Marketplace Fairness Act, including Garnet Hill in Franconia, E&R Laundry and Dry Cleaners in Manchester, Frederick's Pastries in Nashua, Mt. Cube Sugar Farm in Orford, Maine-ly New Hampshire in Portsmouth, Whaddy.com in Nashua, CB Gitty Crafter Supply in Barrington, Polaris Direct in Hooksett and TradePort USA in Somersworth.

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