Daines Secures Permanent Ban on Government Taxation of the Internet

WASHINGTON, D.C. — Senator Steve Daines today secured a permanent ban on state and local governments from taxing Internet access.  

Daines is an original cosponsor of the bipartisan Internet Tax Freedom Forever Act that passed the Senate this afternoon as part of H.R.644, the Trade Facilitation and Trade Enforcement Act. The Internet Tax Freedom Forever Act would permanently extend the current moratorium on taxing Internet access. Montana is one of a few states that would automatically impose a 3.75 percent tax on Internet access if the moratorium is lifted.

“The Internet is a critical avenue for Montana businesses to compete in the global marketplace and serves as a gateway for economic opportunity,” said Daines, a member of the Senate Commerce Committee. “This permanent ban on taxing the Internet protects small businesses and hardworking families from senseless new costs and ensures that the Internet will remain an strong engine of innovation and growth.”

Daines efforts to secure the permanent ban was applauded across Montana: 

Riley Johnson, Montana State Director National Federal of Independent Businesses: “Small business owners are increasingly reliant on the Internet and that’s especially true in rural areas – like Montana – where electronic commerce delivers more products and creates more opportunities than ever. Taxing it would obviously raise costs for small businesses that buy on the Internet and reduce sales for small businesses that sell on the Internet.”

Geoff Feiss, President Montana Telecommunications Association: “The Montana Telecommunications Association (MTA) appreciates Sen. Daines’ support of the Internet Tax Freedom Forever Act (ITFFA).  Montana’s rural telecommunications providers invest over $80 million a year in deploying an advanced broadband infrastructure that supports a wide spectrum of Internet-based activity.  By removing tax barriers to electronic commerce, the ITFFA complements this investment and encourages the growth of Internet products and services.  MTA looks forward to working with Sen. Daines to continue to find ways to promote broadband investment and adoption to enhance the benefits that broadband communications bring to Montana’s consumers.”?

Webb Brown, President and CEO of the Montana Chamber of Commerce: “Montana consumers and businesses face enough economic challenges – unnecessary and over-burdensome taxes on Internet access shouldn’t be added to the list. We applaud Senator Daines’ efforts to make permanent the Internet access tax moratorium.”