The Other Tax Battleground Of 2001: The Internet

Ever since the battle over Internet taxes began in 1996, the focus has been on whether states could impose levies on goods sold over the Net. From the beginning, most state and local officials agreed to a ban on taxing the monthly fees paid to Internet service providers (ISPs), such as AOL Time Warner Inc., believing that such a tax would cause a political firestorm. The only exceptions: a half-dozen states that had enacted such taxes before '96.

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