Will You Soon Pay a State Broadband Tax? > Interstate Commerce

Interstate Commerce

I don't know how they justify it, but they have been charging state sales tax for internet service here in Texas all along....lucky us

A number of states are violating the current ban. For that matter, a class action (filed by those mean nasty trial lawyers) in IL forced one of the bells to refund the taxes they had been collecting for internet access - they should have said NO to the state. The judges decision was based directly on the Internet Tax Freedom Act.

Congress can only pass laws, it is up to the executive branch to enforce them - and for some reason this administration has been very lax about taking on states who are violating the internet tax ban - not sure if TX being one of those states has anything to do with it - though it does make one think...

reply to houstontarge
Seven states that were already taxing internet access
were grandfathered in 1998. Texas was on of these.
There has never been a federal ban on internet access
taxes. Only a ban on new internet access taxes.
I think that in Texas it only applies to the monthly
amount over $21.95.

Note; I notice that not all ISP's are collecting the tax.

reply to John104
the '98 grandfather only applied to dial-up access - this was the clearly stated legislative intent, and the reason for allowing the grandfather. A number of states, including tx, have read it as grandfathering any kind of access tax, and other states have used the grandfather to say that if they taxed ANY kind of telecom sales prior to '98 that they can now apply that tax to Internet access. State legislatures will tax anything that involves two pennies rubbing together and frequently do.