By Julia Pulidindi
This week, the House plans to vote on the Permanent Internet Tax Freedom Act (PITFA, H.R. 3086), a bill that would strip local governments of the authority to tax Internet access. Please contact your representatives and ask them to vote against this bill.
To help foster the growth of the Internet, the Internet Tax Freedom Act (ITFA) was first passed in 1998 and placed a temporary ban on taxing Internet access; the current ban expires on November 1, 2014.
On June 18, over opposition from NLC, the House Judiciary Committee approved PITFA. Besides a permanent ban on Internet taxes, PITFA would end the ability of the ten states that were "grandfathered" under ITFA to continue imposing existing taxes on Internet access.
Last month, the Congressional Budget Office reported that, due to the removal of the grandfather clause, PITFA would impose an unfunded mandate on state and local governments. The revenue losses would be significant: Texas could lose an estimated $358 million in revenue; Ohio could lose $65 million; South Dakota could lose $13 million; and Wisconsin could lose $127 million.
To help defeat this bill, NLC is calling on city leaders to contact their representatives and urge them to vote "No" on H.R. 3086. For more information on how to do this, see NLC's Action Alert.