For reasons largely unrelated to ITFA
, internet use grew exponentially in the years after 1998.
The moratorium under ITFA
began on October 1, 1998, but does not apply to state taxes on Internet access imposed prior to this date, as long as a state did not repeal its tax on Internet access more than 24 months before the enactment of P.
It has been proposed that the ITFA
moratorium be permanently
On direct appeal to the Illinois Supreme Court, the court affirmed the summary judgment only on the basis of preemption under the ITFA
will also be working with farmers to provide short video greetings on its website, www.
As an alternative to legislation that was gaining momentum, NLC and several of its state and local partners pushed for a temporary extension of the ITFA
, rather than the permanent one favored by many in the business community.
49 also calls for the immediate elimination of the ITFA
grandfather clause permitting state and local governments to continue levying Internet access taxes that were "imposed and actually enforced prior to October 1, 1998.
does not forbid states from collecting sales and use taxes on electronic commerce indeed, it has no effect on extant sales and use tax laws.
By ruling out some of the possible instruments of taxation, the ITFA
could make the theoretically optimal tax system unattainable.
prohibits taxing jurisdictions from imposing use tax collection and remittance obligations on a remote seller lacking a substantial nexus with the taxing state.
Businesses--and the CPAs who work for or advise them--should understand clearly what the ITFA
does and does not do, so they can begin to gauge the impact Internet taxation could have on their operations.
This resolution was adopted because the ITFA
has been subject to continual revision, and therefore it was not possible to determine the effect of the ITFA
on the member states.