The federal Internet Tax Freedom Act (“ITFA”) is scheduled to expire on October 1, 2015, unless Congress extends it. The Massachusetts Department of Revenue (“DOR”) issued TIR 15-8 on September 9, 2015, advising internet service providers on how to comply with Massachusetts tax laws after ITFA expires.
ITFA prevents any federal, state or local government from taxing internet access or from imposing discriminatory internet-only taxes. ITFA became law with the passage of Public Law 105-277 in 1998.
According to the DOR, vendors that sell internet access to customers in Massachusetts ”may continue to rely on the lists of taxable telecommunications services and non-taxable and exempt services, including internet access charges as published in TIR 05-8, until further notice from the DOR….”
TIR 15-8 (September 9, 2015): http://www.mass.gov/dor/businesses/help-and-resources/legal-library/tirs/tirs-by-years/2015-releases/tir-15-8.html