Internet Tax Freedom Act Made Permanent

Feb 24th, 2016

Congress passed a permanent version of the Internet Tax Freedom Act (ITFA), and President Obama has now signed it into law. ITFA bans state taxes on internet access.

The ban on taxing internet access has been around in some form since 1998, and Congress has extended the ban by increments several times. The ban has not been permanent until now. Congress passed the permanent ITFA provision as a part of the Trade Facilitation and Trade Enforcement Act. President Obama signed the bill into law on February 24, 2016.

Under ITFA, seven states have been allowed to impose tax on internet access. Those states will have to stop collecting that tax by June 30, 2020.