Internet Tax Ban Extension Stalls in Senate

WASHINGTON — The Senate Commerce Committee canceled a vote on Thursday that would have extended a moratorium on state Internet access taxes for at least four more years. The ban on access taxes has been in place since 1998, and was last reinstated by Congress in 2004 for a period of three years, ending Nov. 1.

"I am disappointed that the Commerce Committee was unable to act on legislation to extend the Internet tax moratorium at today's [meeting]," Commerce Committee Chairman Sen. Daniel Inouye, D - Hawaii, said in a statement.

The question of extending the ban on Internet access taxes was discussed last May in a hearing before the House Judiciary Committee's Subcommittee on Commercial and Administrative Law.

The bill under consideration Thursday, sponsored by Senators Tom Carper, D - Del., and Lamar Alexander, R - Tenn., would extend the Internet tax moratorium for another four years. A similar measure was recently introduced in the House by John Conyers, D. - Mich., chairman of the House Judiciary Committee.

Senators on both sides of the issue had sought a compromise that would have extended the moratorium to six years. The four-year extension is backed by the National Governors Association and includes a "grandfather" clause that would allow the handful of states which had Internet access taxes in place in 1998 to continue imposing the taxes.

Internet service providers, including telephone and cable companies, favor a different bill backed by Senators John Sununu, R - N.H., and John McCain, R - Ariz., which would make the ban permanent. Inouye canceled the vote on Thursday when it became apparent that several senators from both parties would vote for the permanent ban.

Internet service providers have claimed that the price of Internet access could rise by as much as 17 percent if the moratorium on state taxes is allowed to expire.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Pornhub Awards Fiesta: A Night of Music, Dancing and Camaraderie

The eighth annual Pornhub Awards transformed Los Candiles Night Club in Glassell Park into a celebration of glamour, glitter, fashion and fame Wednesday night, as performers, creators and industry insiders toasted the year’s winners and danced late into the night while Diplo and Midnight Mary kept the party pulsing from behind the decks.

Ukrainian Parliament Rejects Porn Decriminalization Bill

The Verkhovna Rada, Ukraine’s parliament, on Thursday voted against passage of a bill that would have decriminalized the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

FSC Launches Pride Fundraising Drive

The Free Speech Coalition (FSC) has launched its Pride Fundraising Drive to support its efforts on behalf of the LGBTQ+ community.

Cultpix Debuts AI-Generated Vintage Adult Films at Cannes

At this year’s Cannes Film Festival, B-movie streaming service Cultpix debuted a collection of AI-generated short films drawn from erotic magazine photo spreads published 50 years ago.

Ofcom Fines Youngtek Solutions $800K for AV Noncompliance

U.K. media regulator Ofcom on Wednesday imposed fines totaling 600,000 pounds (more than $800,000) against adult site operator Youngtek Solutions for failing to implement age checks and respond to information requests as required for compliance with the Online Safety Act.

Pornhub Launches Lesbian Site 'Pornhub Sapphic'

Pornhub has launched Pornhub Sapphic, a site dedicated to female and non-binary content and creators.

Brazil Invites Public Input on AV Guidelines

Brazil’s National Data Protection Authority (ANPD) on Friday launched a public consultation on developing guidelines for age verification mechanisms under the country’s Digital Statute for Children and Adolescents (Digital ECA), which requires adult websites to age-verify users located in Brazil.

Paysite Confidential: Inside the Creator Economy's Shift Toward Ownership

For years, the adult industry’s creator economy has been defined by platforms — powerful engines of discovery, monetization and scale that reshaped how performers connect with their audiences.

Senator Urges DOJ to Crack Down on 'Obscenity,' Attacks OnlyFans

U.S. Senator Jim Banks of Indiana this week urged Acting Attorney General Todd Blanche to reestablish the Department of Justice’s defunct Obscenity Prosecution Task Force in a letter that targets OnlyFans while repeatedly conflating “obscenity” with legal adult content.

UN Experts Urge US, Canada to Prosecute Aylo, Others for 'Exploitation'

GENEVA – The United Nations Office of the High Commissioner for Human Rights (OHCHR) has issued a press release in which two U.N. special rapporteurs, cited as experts, accuse Aylo and other companies of complicity in sexual exploitation.

Show More