House Passes Internet Tax Freedom Act

June 10, 2015

Yesterday the U.S. House of Representatives passed the permanent Internet Tax Freedom Act (ITFA) by a voice vote. ITFA, which was first passed into law in 1998, bars federal, state and local governments from taxing Internet access and from imposing discriminatory Internet-only taxes. This is incredibly important as ITFA is one of the laws that allows internet commerce to exist. ITFA must be renewed periodically, and was done so yesterday by the House. Unfortunately, in the past, proponents of the so-called Marketplace Fairness Act (MFA) tried to attach MFA to an ITFA extension bill, even though the two are in no way related. Although MFA proponents were unsuccessful at doing this in the past, we fully expect them to try this approach again in the Senate as ITFA expires again on October 1st, 2015. As eBay has done since the introduction of the Marketplaces Fairness Act, we will continue to resist the passing of tax legislation that is unfair and harmful to small, Internet-enabled businesses.