July 31,2003

Baucus Applauds Permanent Ban on Internet Access Tax

Senate Commerce Committee Passes Access Tax Moratorium

(WASHINGTON, D.C.) U.S. Senator Max Baucus today applauded the passage of legislationin the Senate Commerce Committee that will permanently ban taxes on access to the Internet.

"Passage of this important bill will ensure that access to the Internet will remainpermanently tax-free," Baucus said. "The Internet provides a wealth of information that shouldbe available to everyone and this bill will prevent high taxes from barring access."

In addition to permanently extending the Internet access tax moratorium, the legislationalso bans taxes that treat Internet purchases differently from other sales and prevents online salesfrom being taxed by more than one state.

"I'm pleased that the Commerce Committee dealt with the Internet access tax issueseparately from the Internet sales tax issue. It's important that we continue to examine theprocess for taxing Internet sales, but in the meantime, this legislation will prevent Internet salesfrom being unfairly over taxed by multiple states and will ensure that access to the Internet willnot be limited by taxes," Baucus said.

The House Judiciary Committee passed similar legislation earlier this month and theBush Administration has voiced their support for both the Senate and House versions.