Washington – CompTIA, the Computing Technology Industry Association, and the Technology Councils of North America (TECNA) are joined by 28 state and regional technology councils supporting a permanent extension of the Internet Tax Freedom Act (ITFA). The tech groups presented Congressional leaders with a letter urging action before the current extension expires on December 11, 2015.
“If the ban is allowed to lapse, state and local governments could move to enact taxes on Internet access, as well as other Internet-related activity, such as bit taxes, bandwidth taxes, or email taxes,” said Elizabeth Hyman, Executive Vice President, CompTIA. “Most Internet service providers, which are not currently collecting sales taxes on Internet access charges, would have to establish internal systems to collect and remit sales taxes to various states and local jurisdictions. This would increase compliance costs for Internet service providers and would increase taxes for all Internet users.”
While the ITFA has always been extended with broad bi-partisan, bi-cameral support, each time it is set to expire, consumers are left wondering how they will be adversely impacted by the new state and local taxes that would be imposed on their ability to access the Internet. That is why it is important for Congress to take this uncertainty away and make the policies set forth in the ITFA permanent.
The ITFA accomplishes two main goals: it bans state and local governments from taxing Internet access charges and assessing multiple and/or discriminatory taxes on electronic commerce. The purpose of this law was to “promote and preserve the commercial, educational, and informational potential of the Internet.” A purpose that is even more valid today.
The full list of tech councils joining CompTIA: Arizona Technology Council (AZTC), Austin Technology Council (ATC), California Technology Council, Chesapeake Regional Tech Council (CRTC), Colorado Technology Association, CONNECT, Connecticut Technology Council (CTC), Idaho Tech Council (ITC), Illinois Science & Technology Coalition, Illinois Technology Association (ITA), KCnext - The Technology Council of Greater Kansas City, Massachusetts Technology Leadership Council (MassTLC), Nashville Technology Council, New Hampshire High Tech Council (NHHTC), New Jersey Tech Council (NJTC), New York Technology Council (NYTECH), North Carolina Technology Association (NCTA), OCTANe, OHTech, Orange County Technology Alliance, Tech Collective, Technology Association of Georgia (TAG), Technology Association of Louisville Kentucky (TALK), Technology Association of Oregon (TAO), Tech Titans, Utah Technology Council, Washington Technology Industry Association (WTIA), Wisconsin Technology Council
The full text of the letter sent to congressional Leaders can be found here.
The Computing Technology Industry Association (CompTIA) is the voice of the information technology industry. With approximately 2,000 member companies, 3,000 academic and training partners and nearly 2 million IT certifications issued, CompTIA is dedicated to advancing industry growth through educational programs, market research, networking events, professional certifications and public policy advocacy. Visit CompTIA online, Facebook, LinkedIn and Twitter.
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