California’s Legislature has gratified businesses by voting 70 to 0 in favor of the California Internet Tax Freedom Act. The bill is designed to prevent lawmakers from imposing new taxes on commerce that is conducted over the internet, and its passage is being interpreted as a green light for ecommerce in California. Existing state and local revenues will continue to be levied on internet commerce, but the new legislation will prevent multiple taxes on the same transaction. The Californian law reflects trends in the US federal government. In June Republican Congressman Christopher Cox successfully sponsored a bill to prevent the passage of any new net taxes for the next three years.
