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Permanent ITFA Signed Into Law - Broadcasting & Cable

Permanent ITFA Signed Into Law

Prevents new, sunsets old, taxes on Internet service
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The Permanent Internet Tax Freedom Act (PITFA) was signed into law today (Feb. 24) by the President.

The law, which passed Feb. 11, would permanently bar states and localities from imposing taxes on Internet access.

PITFA was included on a trade and customs enforcement bill that passed overwhelmingly (75 to 20).

seven states currently collect taxes on Internet access because they were grandfathered when a temporary ITFA passed in 1998. PITFA sunsets those taxes by 2020.

Rep. Anna Eshoo (D-Calif.), who was a lead sponsor of the legislation, said: "“At a time when affordability continues to be a key barrier to widespread broadband adoption, this bill bolsters our national commitment to universal broadband in America.”

Eshoo said that had the temporary Internet Tax Freedom Act been allowed to expire, it could have meant 10,000 states and localities levying taxes on Internet access service, which could send subscribers fleeing to the tune of some 15 million people.

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