Federal Funding and Ban on Internet Access Taxes Extended; GFOA Urges Outreach to Congress

Wednesday, September 24, 2014

President Obama signed a short-term $1.012 trillion fiscal measure to keep the federal government running through December 11, 2014. The measure also includes an extension of the Internet Tax Freedom Act (ITFA) until that time. ITFA – the current law that prohibits state and local taxation of Internet access – would expire on November 1 without the language included in budget measure.

Senate leaders hope that the extension will give their colleagues more time to consider supporting the Marketplace and Internet Tax Fairness Act (S. 2609) or MITFA before the post-election session, when senators are expected to vote on the bill. The legislation packages the Marketplace Fairness Act with a 10-year extension of ITFA. GFOA has long supported the Marketplace Fairness Act, which will enable state and local governments to compel retailers to collect and remit taxes from online purchases. The GFOA also supports a 10-year extension of ITFA in lieu of legislation passed by the House on July 16 that would permanently extend ITFA.

While your Senators and Representatives are home campaigning or visiting their districts over the next two months, consider reaching out to them directly or through your local elected officials, and urge them to support the Marketplace and Internet Tax Fairness Act (MITFA- S. 2609) when Congress returns to Washington D.C. in November, and to oppose any efforts to make the moratorium on Internet access taxes permanent. Talking points in support of the measure can be found here.