House Passes Daines Co-Sponsored Internet Tax Freedom Bill

Press Release

The U.S. House of Representatives today passed legislation co-sponsored by Representative Steve Daines that makes permanent a ban on the taxation of internet access.

Congress first passed a temporary ban on state and local taxes on internet access in 1998 that has since been extended three times with bipartisan support. The Permanent Internet Tax Freedom Act (H.R. 3086) makes the ban permanent by striking the November 1, 2014 expiration date of the most recent extension.

"After spending 12 years in the technology sector, I know the internet plays an essential role in the operation of small businesses across the country. And as a father of four, I know how important it is as a tool for students and educators. The last thing Montanans need is another tax that will kill jobs and make accessing the internet more expensive," Daines said. "The Permanent Internet Tax Freedom Act will protect students doing research and grandparents emailing pictures of their grandchildren from excessive taxes on their internet access."

Taxes on internet access make high-speed broadband services more expensive for Americans who rely on them for business, education and communication. If the ban on internet taxes is not extended before its expiration, Americans could face a substantial new tax burden on internet access that is estimated to be more than twice the average rate of all other goods and services.

By making the moratorium on internet access taxation permanent, H.R. 3086 will provide Montana families and small businesses with much-needed certainty and help encourage economic growth and opportunity for millions of Americans.

In addition to opposing a tax on internet access, Daines has been a leader in opposing the so-called Marketplace Fairness Act, which would force Montana businesses conducting online sales to collect sales tax on behalf of more than 9,000 cities and states nationwide.

Earlier this month, Daines spearheaded successful efforts to discourage House leadership from including this burdensome and controversial provision in the Permanent Internet Tax Freedom Act and threatening its passage.

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