$1 Billion in Taxes on Internet Access Set to Vanish in July

Six states are staring at a combined loss of nearly $1 billion in revenue in the 2021 fiscal year when they lose a grandfathered ability to tax internet service providers.

In three months, a half-dozen states will lose their authority under the 1998 Internet Tax Freedom Act (ITFA) to levy taxes on subscription fees charged by internet providers such as AT&T, Cable One, CenturyLink, Comcast and Verizon. The loss in revenue—roughly half attributable to Texas alone—comes at a moment all states face budget shortfalls, hard-hit by the coronavirus pandemic ...