President Bush has signed into law the two-year moratorium on Internet access taxes. The bill effectively slows progress on attempts by states to impose an Internet sales tax.
Congress had hoped to tie the issue of whether to allow states to collect sales tax on Internet sales to the bill, but the issue has been tabled for now.
President Bush commented, "The Internet is an innovative force that enables such applications as distance learning, video conferencing, and precision farming. Government must do its part to make access to these services affordable. It should not raise costs through additional taxation."