Congress Closer to Ban on Connection Tax

Lawmakers revived a long-stalled effort to block state and local governments from taxing Internet connections, in a last-minute agreement to ban the taxes until 2007.

House and Senate negotiators expect to pass a bill this week and reinstate a temporary ban that lapsed more than a year ago. Lawmakers sought to make sure that satellite and broadband connections got the same treatment as traditional dial-up connections. The plan would not affect sales taxes imposed on merchandise purchased over the Internet.