Internet Tax Freedom Act

21 Oct 1998

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Regulations and Policies

The Internet Tax Freedom Act was signed into a U.S. law on 21 October 1998 in order to promote and preserve the commercial, educational, and informational potential of the Internet. The Act bans federal, state and local governments from taxing Internet access and from imposing discriminatory measures such as bit taxes, bandwidth taxes, and email taxes. Moreover, it prohibits multiple taxes on e-commerce. It is important to note that the Act did not impede states from imposing taxes on transactions conducted over the Internet.