Cyberspace Tax Policy

This paper was prepared on behalf of and in conjunction with a task force comprised of members of the Interactive Services Association("ISA"), including America Online, Inc. The paper was written with the intention of initiating discussions with tax policymakers about state and local transaction tax issues affecting the Internet and online services industry. 

Much uncertainty exists as to the manner in which state and local taxes should be applied to the Internet and online services industry, primarily due to policymakers and others' lack of understanding (1) the technology involved in this industry, (2) the nature of the transactions conducted through the Internet and proprietary subscriber networks, and (3) the applicability, if any, of current state laws to this industry. This paper seeks to educate policymakers on these and related issues that affect this industry as well as to present practical and equitable recommendations which can serve as a basis for constructing a uniform, consistent and fair tax scheme among all fifty states.

This site is currently working on displaying the cyberspace tax policy in html.