Congressional Budget Office Finds Excessive Costs to States and Localities from Internet Tax Moratorium

Thursday, July 3, 2014

The Congressional Budget Office estimated that the Permanent Internet Tax Freedom Act (H.R. 3086), if enacted, would cost states and localities several hundred million dollars a year. The bill would permanently preempt state and local governments’ authority to assess taxes on Internet access and would specifically remove that authority from ten states that are currently permitted under current law to assess such taxes. The House Judiciary Committee recently approved H.R. 3086, GFOA-opposed legislation, and the bill will be considered by the full House soon after Congress returns from the July 4th recess. GFOA members should immediately urge their Congressional delegations to vote no on the passage of H.R. 3086, the Permanent Internet Tax Freedom Act.