Wed May 9, 2012
House Kills Ban On Taxing Internet
Exempting broadband and wireless internet connections from the state’s communication tax remains a priority for republican leaders, but the House voted 247-93 to kill the repeal. A big reason way is because the senate-crafted proposal also undid House leaders’ plan to place $16 million in the state’s rainy day fund. Steve Stepanek is chairman of House ways and means.
"The prime purpose of this bill was to put money into the rainy day fund. The senate has no intention of putting any of this money into the rainy day fund."
After the house vote, Senate President Peter Bragdon says he remains optimistic the repeal will happen. But he added it will be largely up to the house.
"Their action killed the ban on the internet taxes and hopefully they find another place to put it."
Banning taxes on internet access would cost the state about $6 million a year. Bills in both chambers could still be amended to include the repeal.