Late last week, Senator Kelly Ayotte (R-NH) spoke on the floor of the U.S. Senate about the importance of keeping the Internet sales tax bill off of the important Internet Tax Freedom Act.  The Internet Tax Freedom Act protects consumers from the increased costs in accessing and using the Internet and prevents multiple and discriminatory taxation of Internet sales. 

The current Internet Tax Freedom Act expires on November 1, 2014 and the U.S. House of Representatives passed a permanent extension of the bill earlier in July.  Although the bill has broad bipartisan support in the U.S. Senate, Senate leadership has announced plans to only move a 10-year extension of the Internet Tax Freedom Act and marry it with the Senate passed Internet sales tax bill.   

In her speech, Senator Ayotte expressed her concern at what “shenanigans” may occur if the Internet Tax Freedom Act is not permanently extended.  In particular, she raised concerns with efforts to attach the Internet sales tax bill to this must pass legislation.  Ayotte explained that, if passed, the Marketplace Fairness Act would take thriving Internet businesses and turn them into tax collectors for over 10,000 taxing jurisdictions nationwide.

Watch Senator Ayotte’s speech on the floor of the U.S. Senate.