Congress Makes Decision on State Internet Tax
A measure that has languished in Congress, is one that would allow States to tax its residence for their internet usage. After years of debate, they have finally come to a decision. According to the Reporter-Herald, Congress, in a vote of 75-20, has voted to ban local Internet taxes. This decision came to pass, in a bipartisan bill, that is expected to be signed into law by President Obama.
The main sticking point that has held this bill up in the past, is that many, were attaching the State Internet Tax, with States being allowed to charge sales tax to resident that buy products online. This bill, separates the two, with both parties in Congress agreeing to address the State online sales tax at a later date. Some still believe that this is a missed opportunity to address the sales tax, however the majority are happy that they were able to knock down the first pin in a peaceful, bipartisan effort.
Currently, there are seven states that charge their residents an Internet tax. These states are Hawaii, New Mexico, North and South Dakota, Ohio, Texas and Wisconsin. These states collect a combined $563 million a year from this tax, and have until 2020 to phase it out.