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Senate Approves Seven Year Internet Tx Ban Extension; Now To House For Approval

October 26, 2007

A compromise bill just passed by the U.S. Senate would extend the ban on state-imposed or locality-imposed  Internet access taxes for another seven years.

The U.S. House of Representatives, which is the "lower" body of the U.S. Congress, passed a three-year extension of the tax.

There is a current ban in place, but it is set to expire next Thursday.

The Senate bill includes some provisions the House's bill does not. The proposal says in part that states are forbidden to tax "home page electronic mail and instant messaging (including voice--and video--capable electronic mail and instant messaging), video clips, and personal electronic storage capacity, that are provided independently or not packaged with Internet access."

The Senate measure now needs the approval of the House by November 1- an event seen as likely by Congressional sponsors of this measure.  At this time, it is unclear whether President Bush will sign it into law.

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