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Internet tax deal reached
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June 14, 2001: 8:11 a.m. ET
Move extends moratorium on sales tax 5 years, seeks uniform rates after that
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NEW YORK (CNNfn) - U.S. lawmakers reached a deal that extends the moratorium on new online taxes until 2006 but paves the way for increased collection of existing sales taxes on the Internet and catalog sales after that, a published report said Thursday.
The bipartisan compromise on the legislation will not change the status quo under which consumers making purchases over the Internet and through catalogs avoid paying sales taxes, USA Today said. The current moratorium expires in October.
"No one is taking about imposing new taxes on anyone," the paper quoted Sen. Byron Dorgan, D-N.D., as saying.
The deal also gives states a timeframe of five years to write a simplified tax-collection plan, the report noted, and if approved by Congress, taxes on almost all online and catalog purchases would be collected.
Companies that sell over the Internet argue that there are too many sales tax rates imposed by as many as 7,600 state and local tax jurisdictions, the paper said.
According to the new tax deal, states would have to agree on one national sales tax, or one rate per state, the report said. 
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