A ban on internet-access taxes received a last-minute extension Wednesday, one day before it would have expired, and the White House said President George W. Bush would sign legislation approved by Congress to extend the moratorium for seven more years. There was strong support in both chambers of Congress for a permanent moratorium, but concerns over the potential long-term impact on state and local governments forced a compromise. The internet-tax ban, first approved in 1998 and twice renewed, was set to expire November 1. In addition to extending the ban, the legislation also contains a provision aimed to preventing state and local governments from assessing taxes beyond those levied on simple internet access. The legislation specifically prohibits taxation on e-mail and instant-messaging services “that are provided independently or not packaged with internet access.”
