NH News
4:58 pm
Thu April 26, 2012

Internet Tax Ban Takes a Step Forward

The Senate Finance committee has voted unanimously to recommend banning a so-called “internet tax”. The bill would clear up the confusion surrounding the state’s Communications Services Tax.

Salem Senator Chuck Morse says two months ago, internet providers approached him to say that the state was starting to get serious about collecting taxes on internet. So he decided to do something about it.

"The amendment is very simple," Morse says, "New Hampshire is making a statement, it will not tax the internet, that’s it."

The industry is thrilled with the proposal, because they would be able to offer cheaper internet. But that doesn’t come for free.

According to state revenue officials the change would cost at least $6 million in taxes already being collected.

The DRA also says as more communication shifts to the internet, this language could lead to bigger holes in the budget.