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Congress moves near final OK of local Internet tax ban

FILE - In this Feb. 9, 2016 file photo, Senate Majority Leader Mitch McConnell of Ky. speaks on Capitol Hill in Washington. State and local governments would be permanently barred from taxing access to the Internet under a bipartisan compromise the Senate began pushing toward final congressional approval. McConnell said Thursday, Feb. 11, 2016, the measure would relieve people of “the worry that their Internet access is being taxed.” (AP Photo/J. Scott Applewhite)
FILE - In this Feb. 9, 2016 file photo, Senate Majority Leader Mitch McConnell of Ky. speaks on Capitol Hill in Washington. State and local governments would be permanently barred from taxing access to the Internet under a bipartisan compromise the Senate began pushing toward final congressional approval. McConnell said Thursday, Feb. 11, 2016, the measure would relieve people of “the worry that their Internet access is being taxed.” (AP Photo/J. Scott Applewhite) FILE - In this Feb. 9, 2016 file photo, Senate Majority Leader Mitch McConnell of Ky. speaks on Capitol Hill in Washington. State and local governments would be permanently barred from taxing access to the Internet under a bipartisan compromise the Senate began pushing toward final congressional approval. McConnell said Thursday, Feb. 11, 2016, the measure would relieve people of “the worry that their Internet access is being taxed.” (AP Photo/J. Scott Applewhite)

By Associated Press 3 min read

WASHINGTON (AP) – State and local governments would be permanently barred from taxing access to the Internet under a bipartisan compromise the Senate began pushing on Thursday toward congressional approval.

Senators voted 73-22 to overcome a final procedure obstacle and set a later vote that would send the legislation to President Barack Obama. He was expected to sign the bill, which also would revamp trade laws.

The Internet tax provision had broad support, with few senators eager to oppose the bill and open the door to taxing online access during an election year. Senate Majority Leader Mitch McConnell, R-Ky., said the measure would relieve people of “the worry that their Internet access is being taxed.”

Nonetheless, some were resisting the legislation because of trade provisions and because it omitted a proposal that would let states force online retailers to collect sales taxes for their transactions. Senate Minority Leader Harry Reid, D-Nev., said the bill was full of “missed opportunities and half-measures.”

Since 1998, in the Internet’s early days, Congress has passed a series of bills temporarily prohibiting state and local governments from imposing the types of monthly levies for online access that are common for telephone service. Such legislation has been inspired by a popular sentiment that the Internet should be free – along with Republican opposition to most tax proposals.