By Robert Freedman | National Association of Realtors
Ten states today levy what are known as Internet access taxes. That might come as a surprise to many people, since the taxes are largely invisible. They’re levied on companies such as Verizon and Comcast, the Internet service providers (ISP) that manage the infrastructure through which Internet traffic flows. These companies pass the taxes on to consumers in the form of higher fees.
In 1998, Congress limited the taxes to just the 10 states—Hawaii, New Hampshire, New Mexico, North Dakota, Ohio, South Dakota, Tennessee, Texas, Washington, and Wisconsin—by passing the Internet Tax Freedom Act.