On the recordMay 10, 2000
The truth is that this legislation alone does not address sales tax. This legislation alone does not affect the States' ability to collect sales tax, to fund law enforcement, to fund education. However, there is a fear, a legitimate fear, that this legislation may slow the process of addressing the states and their ability to collect sales and use taxes. This is an important issue. Now, let me say first of all, we say that this legislation extends 'the moratorium.' What is the meaning of 'extends the moratorium?' Well, the Internet Tax Freedom Act of 1998 banned taxes on Internet access and it banned multiple or discriminatory taxes on electronic commerce. The Act did not ban the collection of sales and use taxes on sales made over the Internet. I repeat, the Act did not ban the collection of sales and use taxes on sales made over the Internet. So extending this moratorium will not ban the collection of sales and use taxes.
Source
govinfo.gov




