Thursday, October 30, 2014

ADOR Issues Notice Concerning Pending Expiration of Internet Tax Freedom Act

Earlier this month, the Alabama Department of Revenue ("ADOR") published Information Release 10-15-14, a copy of which can be found here.  This Information Release concerns the pending expiration of the federal Internet Tax Freedom Act (the "Act"), which is set to expire on December 11, 2014.

In the release, the ADOR advises vendors of Internet access to customers in Alabama that in the event Congress fails to extend the Act, as it has done in the past, those vendors may continue to treat Internet access charges as exempt from Alabama tax until further notice from the ADOR.

Of course, it is widely expected that Congress will extend the Act soon after it returns to Washington, D.C. after the mid-term elections on November 4, 2014.  However, with a very divided, lame duck Congress, there is no guaranty.

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