Internet Taxation Moratorium Could Be Extended This Week

By John S. McClenahen On Capitol Hill a consensus to extend the current three-year moratorium on certain Internet taxes is emerging, says Jeffrey Friedman, a partner at KPMG LLP, Washington. The moratorium, which covers taxes on Internet access, multiple taxation and "discriminatory" taxation -- is slated to expire on Oct. 21. An extension could be voted on in the House and Senate yet this week. The debate over Internet taxation, which has been going on since 1998, pits technology companies and some business groups against many state and local governments. Many businesses fear sales taxes on Internet transactions will curtail the growth of e-commerce, while state and local governments, in many instances, want the revenue for education and other services.

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