Move to extend Internet tax ban stalls in Senate

By Peter Kaplan

WASHINGTON, Sept 28 (Reuters) - An effort by U.S. lawmakers to extend a moratorium on state Internet access taxes has stalled amid a dispute over whether the ban should be permanent or temporary.

The Senate Commerce Committee canceled a planned vote on a bill on Thursday that would have extended the tax ban for at least four more years after a possible compromise on the issue fell through.

"I am disappointed that the Commerce Committee was unable to act on legislation to extend the Internet tax moratorium at today's (meeting)," Commerce Committee Chairman Sen. Daniel Inouye said in a statement.

Inouye said there would be further discussions to try and reach "a reasonable compromise."

At issue is a Senate bill sponsored by Democrat Tom Carper of Delaware and Republican Lamar Alexander of Tennessee that would extend the Internet tax moratorium for another four years.

A similar measure was recently introduced in the House by the chairman of the House Judiciary Committee, Democrat John Conyers of Michigan.

The ban has been in place since 1998, and was last reinstated by Congress in 2004 for a period of three years.