Washington (Nov. 10, 2003) -- Cash-strapped states may be disappointed to learn that the U.S. Senate is expected to join the House in renewing a ban on Internet access taxes.

State and local governments fear the loss of up to billions of dollars in potential revenue if the ban stays in effect, according to a USA Today report.

Consumers in most states don't have to pay sales tax on the monthly fees they dole out to Internet service providers like America Online and EarthLink.

Supporters of the favored bill, which is favored by President George W. Bush, say failure to make permanent the 5-year-old moratorium would hinder the tech-sector rebound and discourage low-income consumers from accessing the Internet.

-- WebCPA staff

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