Texas Lowers Internet Access Taxes.

• Position: Brief Article

State and local governments are increasingly concerned about the sales tax revenues they lose as a result of Internet sales, but Internet access taxes also can be a source of income. Currently, there are only eight states in the country that tax Internet access: Texas, Connecticut, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, and Wisconsin. In 1999, the Texas Legislature reduced the sales tax on Internet related services--such as Internet access fees, information services, data processing services, and Web page development and hosting services--by as much as 20 percent. The current movement in Texas is to abolish the tax on...