Internet Access Tax Moratorium
Internet access—and its concomitant ability to communicate, educate, and telework—should not be taxed. At a time when most people agree that the U.S. needs more broadband, Internet access taxes will slow broadband deployment, particularly in rural and low-density areas. Fewer consumers will buy a higher-priced taxed product. A smaller pool of potential customers means providers can’t justify investment in new broadband infrastructure build-out. More>>
Internet Sales Taxes
State governments have long grappled with the challenges of collecting sales and use tax on purchases from out-of-state retailers. Mail-order catalog sales, telephone, and most recently, Internet commerce have all presented a challenge to state tax administrators seeking to tax, with e-commerce being just the latest iteration of a decades old concern.
The 1992 Quill decision by the US Supreme Court upheld the premise of “nexus”, such that only businesses with a physical presence in a state can be forced to collect sales taxes for that state. State governments are hoping to overcome the nexus requirement by simplifying and streamlining their tax codes, and are now seeking a Congressional mandate to ensure compliance by retailers nationwide. More>>