The U.S. House of Representatives on Friday passed a proposal introduced by Congressman Steve Chabot (R-Westwood) and House Judiciary Committee Chairman Bob Goodlatte (R-VA) to permanently ban state and local taxes on Internet access. The proposal was included as part of the conference report accompanying H.R. 644, the Trade Facilitation and Trade Enforcement Act of 2015.

“When we first enacted the Internet tax moratorium, the rapid growth of the Internet had made it an enticing target for hundreds of taxing jurisdictions across the country,” said Chabot. “In the years since, the Internet has continued to grow and to thrive free from the stifling effects of overtaxation, and is now an indispensible tool for commerce, education and social interaction. Making the Internet tax moratorium permanent will ensure that this valuable tool remains accessible and affordable for millions of American families now and in the future. I thank Chairman Goodlatte and my colleagues for working to pass this important legislation.”

The Internet tax moratorium was enacted in 1998 and created a temporary, three-year prohibition on the imposition of state and local taxes on Internet access. The moratorium has been renewed five times over the years, and it is currently scheduled to expire on December 11, 2015.

The legislation approved today will make the moratorium permanent and prevent potentially hundreds of jurisdictions from imposing multiple or discriminatory taxes on the Internet. If the moratorium were permitted to expire, it is estimated that the tax rate on Internet access could be double that placed on other goods and services.

Chabot has been a leader in the effort to make the Internet tax moratorium permanent for years. In fact, on May 10, 2000, Chabot offered an amendment to permanently ban Internet access taxes when the original moratorium was being renewed. Chabot’s amendment failed on the House Floor, but he has continued to pursue the issue, proposing legislation several times over the years. Most recently, he joined Chairman Goodlatte as an original sponsor of H.R. 235, the Permanent Internet Tax Freedom Act.