Bush Signs Leahy-Backed Bill
Extending Internet Tax Moratorium

WASHINGTON (Thurs., Nov. 29) – President Bush Wednesday signed into law a bill cosponsored by Sen. Patrick Leahy that will extend the ban on discriminatory Internet taxes that expired Oct. 21.

Without the moratorium, 30,000 separate jurisdictions across the country could levy discriminatory or multiple Internet taxes on e-commerce. The extension gives governors and state legislatures time to simplify their sales tax rules and reach consensus on a workable national system for collecting sales taxes on e-commerce. Leahy also took a leading role in advancing the initial Internet tax moratorium law, enacted in 1998.

"E-commerce should not be saddled with new taxes that do not apply to other commerce," said Leahy.

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