Politicians weigh renewal of Net access tax ban

WASHINGTON--With only months left on a moratorium restricting state governments from taxing Internet access, the U.S. House of Representatives on Tuesday began a debate over whether the ban should be made permanent or allowed to lapse.

At issue is the scheduled expiration on November 1 of a law, initially enacted in 1998, that says local governments generally cannot tax Internet access, including DSL (digital subscriber line), cable modem and BlackBerry-type wireless transmission services. The law also prohibits governments from taxing items sold online in a different manner than those sold at brick-and-mortar stores, but it does not deal with sales taxes on online shopping.

That's the way it should remain, some politicians said at a brief hearing here convened by a House of Representatives panel on commercial and administrative law.