Internet Taxation and the State Fiscal Picture - October 20, 2003 Vol. 4 No. 21

October 20, 2003 Vol. 4 No. 21:

Published: 10/20/2003

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Internet Taxation and the State Fiscal Picture

The extension of the Internet services’ sales tax ban is due to expire November 1. However concerns remain, especially given the dire fiscal straits of most states. Besides making the ban permanent, the definition of the services that would be exempt from taxation is being expanded. The proposal under consideration also eliminates a "grandfather" clause that allowed state and local sales taxes on Internet access to continue in eleven states. See the new report by the Center on Budget and Policy Priorities (CBPP).