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

Admaze Introduces Flat-Rate Media Buying for Publishers, Advertisers

Adult ad network and agency Admaze has introduced a flat-rate media buying model for publishers and advertisers.

Centro Launches Lifetime Revenue Share Affiliate Program 'CentroPulse'

Centro has launched CentroPulse, its new lifetime revenue share affiliate program for performance marketers, adult traffic affiliates, established webmasters, and sub-affiliate network operators.

Fanstage Launches Telegram Sales Solution

Fanstage has launched its new platform, allowing creators to sell PPV content directly from their Telegram DMs.

Second Bill Proposed to Shield US Sites From 'Foreign Censorship'

For the second time in recent weeks, a Republican congressman has introduced legislation to bar U.S. courts from helping to enforce foreign laws restricting speech that would domestically be protected under the First Amendment, potentially including foreign age verification laws.

SextPanther Launches in EU, UK

SextPanther has expanded its territory to include the U.K. and E.U.

Segpay Expands to Australia, Names Sam O'Connell Managing Director

Segpay has expanded its territory to include Australia and named Sam O’Connell as managing director of its Australian operation.

Ondato Joins ASACP as Corporate Sponsor

Age and identity verification company Ondato has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

2026 XBIZ Amsterdam Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Amsterdam, set to take place Sept. 10-13 at Passenger Terminal Amsterdam.

Ukrainian Legislators Revive Porn Decriminalization Push

The Verkhovna Rada, Ukraine’s parliament, is once again considering a bill that would decriminalize the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Ofcom Fines XGroovy $986,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 700,000 pounds (about $986,000) against adult website XGroovy for failing to comply with provisions of the Online Safety Act.

Show More