Internet Access Tax Ban

Wednesday, May 23rd 2007, 6:25 am

By: News On 6

OKLAHOMA CITY (AP) -- An Oklahoma Tax Commission official testifies before Congress about the impact of a possible permanent federal government ban on taxing Internet access. According to a story from The Oklahoman's Washington bureau, commission Vice Chairman Jerry Johnson told a U.S. House subcommittee Tuesday that Congress shouldn't make a moratorium on taxing Internet access permanent or should do so only temporarily.

Now that consumers are buying Internet access, cable television services and even phone services from single providers, Johnson says tax commissioners nationwide are concerned that companies could argue their entire package of services qualifies as Internet access.

In Oklahoma, the 4.5% sales tax applies to phone and cable services.

Johnson told lawmakers they should ensure the definition of Internet access doesn't go beyond the original intent, which is to provide tax-free connection to basic Internet content.