Connecticut has a sales tax on any service that the state deems as "computer and data processing", for e.g. it could be a magazine subscription you got off the Internet or your groceries, its all the same to them. Under the Internet Tax Freedom Act, such taxation is prohibited until October 2001...more
The Seattle Times famously called the plans of the local authorities based in Tacoma, Washington, to tax ISPs as phone companies on top of the telecommunication taxes that they were already paying, a "dumb" idea...more
According to the State of Vermont, any "electronic mall" located on the superhighway of the Internet located outside the state has an obligation to the state for collecting taxes owed on sale of products or services to the residents of Vermont...more
Wisconsin is collecting a 5% sales tax on access to the Internet. Their justification of taxation on Internet access is derived from it being seen as the same thing as telephone and telecommunication services.