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

SWR Data Publishes 'Clip Trend' Report

Adult industry market research outfit SWR Data has published a report on the performance of clip platforms and sales.

Another German Court Rejects Blocking Orders Against Pornhub, YouPorn

A German court has blocked the Rhineland-Palatinate Media Authority (MA RLP) from forcing telecom providers based within the court’s jurisdiction to cut off access to Aylo-owned adult sites Pornhub and YouPorn.

Ofcom Fines Kick Online Entertainment $1 Million for AV Noncompliance

U.K. media regulator Ofcom on Thursday fined Kick Online Entertainment 800,000 pounds (more than $1 million) for failing to implement age checks as required for compliance with the Online Safety Act.

FSC Details Legislative Outlook for 2026

The Free Speech Coalition (FSC) has laid out the legislative outlook for the industry in 2026.

AEBN Publishes Popular Searches by Country for December, January

AEBN has released the list of popular searches from its straight and gay theaters, by country, for December and January.

Jim Austin Joins CrakRevenue Team

Strategist Jim Austin has been hired by CrakRevenue.

Judge Dismisses NCOSE-Backed Suits Against Adult Sites Over Kansas AV Law

A federal judge on Tuesday dismissed lawsuits brought against two adult websites in Kansas for alleged violations of the state’s age verification law.

Aylo/SWOP Panel Spotlights Creators' Struggle for Digital, Financial Rights

Aylo and Sex Workers Outreach Project (SWOP) Behind Bars presented, on Tuesday, an online panel on creators’ rights, debanking and deplatforming.

AV Bulletin: Canada, Italy, Australia Updates

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been enacted around the United States, as well as proposed at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Holly Randall Soft Launches 'Wet Ink' Magazine

Holly Randall has officially soft-launched the creator-focused publication Wet Ink Magazine.

Show More