In 1998, Congress enacted the Internet Tax Freedom Act to help the Internet grow.
Congress generously used state and local government tax bases for this assistance rather than federal funds. The act imposed a three-year moratorium on state and local taxes on Internet access and multiple or discriminatory taxes on e-commerce.
Taxes already in existence on Oct. 1, 1998, were allowed to continue. Congress extended the generosity of state and local governments twice more by renewing the moratorium, which now expires Nov. 1.