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Taxing News

All good things come to an end--as might the tax-free Internet

This story appears in the February 2000 issue of Entrepreneur. Subscribe »

The money grab is in overdrive. Cities, counties and states, wowed by e-commerce, want their taste of Net profits--namely, the sales tax revenues that government officials say they're losing out on when buyers shop online.

A national Advisory Commission on Electronic Commerce, commissioned by Congress, is busily chewing on these complaints, but for now there's little local officials can do. The Internet Tax Freedom Act, a federal law enacted in October 1998, prohibits for three years imposition of sales and use taxes on Internet access charges or any discriminatory taxes on e-commerce.

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