U.S. Internet Tax Exemption Extended

U.S. president George Bush has signed the “Internet Tax Freedom Act Amendment Acts of 2007,” into law, extending the he moratorium on state and local government Internet access taxes by seven years.

The act, H.R. 3678, prohibits multiple and discriminatory taxes on online commerce was set to expire November 1. It was first approved in 1998 for a three year period and was since extended twice.

The U.S. Congress and House of Representatives approved the act, but while expressing strong support for it, decided against a permanent moratorium. Concerns over potential long-term impact on state and local governments were cited.

The legislation specifically prohibits taxation on e-mail and instant messaging services "that are provided independently or not packaged with Internet access."

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