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Senate set to debate Net tax bill

The U.S. Senate next week is expected to debate a bill that could impose a permanent ban on taxes on Internet access service, according to Senate staffers. The moratorium on such a tax, originally crafted in 1998 and then extended in 2001, is set to expire on Nov. 1. However, some senators want to make the ban permanent, leaving certain states concerned about lost revenue.

Other regulatory bodies, such as the Multistate Tax Commission, have expressed concern that the ban could extend into voice-over-Internet protocol calls and could limit the revenue potential from such calls for states. The bill is likely to be debated on the Senate floor on Thursday, Nov. 6, the sources said.