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ITFA Gets Year Extension in Funding Bill

The moratorium on Internet access taxes will be around at least for another year.

A one-year extension is part of the omnibus—1,603-page—government funding bill expected to pass in the next few days to avoid a government shutdown. That moratorium sunsets Dec. 11 unless it is renewed and could lead to a "swift increase" in Internet access bills, said one bill backer.

The Internet Tax Freedom Act (ITFA) has been extended three times since it first passed in 1998. It had been scheduled to expire Nov. 1, 2014, but was extended as legislators worked on a House-passed version that would have made it permanent, and a Senate version that combined it with the Marketplace Fairness Act (MFA), which would give states and localities the ability to tax online sales.

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