WASHINGTON — Internet access, as well as e-mail and text messaging, will remain tax-free for at least another seven years if President Bush, as expected, signs a bill passed Tuesday by the House that extends a moratorium on such taxes.
The final bill, approved on a vote of 402-0, was the result of last-minute maneuvering between the Senate, which passed its version last week, and the House, which had approved a four-year extension of the tax ban.
The current moratorium, first enacted in 1998 and renewed twice since, was to expire Thursday. Bush is expected to sign the measure promptly.
The moratorium does not affect sales taxes related to Internet purchases, but rather use taxes that local or state government might charge customers for Internet connections.
Many governors, other state officials and some congressional leaders objected to a permanent ban, saying it’d overstep state and local taxing authority.
A late fix in the bill closed a loophole that might have allowed taxation of e-mail, instant-messaging and other Web services.
Extending the moratorium had the support of Internet giants such as eBay and Google; Verizon and other telecommunications firms; and smaller businesses.
The final bill is not a comprehensive ban on taxing services delivered by the Internet. The moratorium does not include “voice, audio or video programming” that charges users a fee, such as phone and television services.
