House Finance Committee hears Rep. Gina McCabe’s Internet Tax Freedom Act

Legislation that could prevent a new state and local tax on internet and telecommunication services received a public hearing in the House Finance Committee on March 24.

House Bill 2166, introduced by Rep. Gina McCabe, would prohibit states as well as local governments from imposing a sales or use tax on telecommunications services used to provide internet access service.

Currently, there is federal law in place preventing the taxing of these services. However, the law expires on Oct. 1, 2015. If the state does not pass a law this session, Washington state could be open to a tax on internet service once the federal law sunsets.

“This legislation will continue the status quo, but certainty and predictability are important to citizens when it comes to their services and taxes,” said McCabe, R-Goldendale. “We have managed to go without taxing our internet services since 1998, there is no reason to open it up to possible taxation now.”

According to a study done by the Tax Foundation, Washingtonians pay the highest wireless utility taxes in the United States.

The Association of Washington Business and the Broadband Communication Association testified in support of the legislation.

The 105-day legislative session is scheduled to adjourn on April 26.



Washington State House Republican Communications