According to Financial Times  (registration required), the U.S. House of Representatives voted to extend a tax moratorium yesterday. The ban was first adopted in 1998 to promote internet access and to stop the creeping local taxation in the early days of the net. Specifically, the ban prevents internet access from being taxed and eliminates discriminatory taxes treating internet sales differently than other types of sales. Despite opposition from state and local government, the moratorium will be extended for seven years and is considered a victory for technology companies. "While we continue to fight for a permanent measure, for the next seven years at least, the private sector can invest in e-commerce and broadband deployment without fear of discrimination," said Phil Bond, head of the Information Technology Association of America.

The Senate approved the legislation last week, and now President Bush is expected to sign it before the current tax ban expires on Thursday.