This bill would permanently extend the ban on state and local internet access taxes, and the ban on “multiple or discriminatory taxes” on electronic commerce. Under current law, the ban on state and local internet taxes would expire on October 1, 2015.
If you're buying something on the Internet, an example of “multiple taxes” on electronic commerce would be if the state where you live imposes a sales tax on the transaction and the state where the seller is located also imposes a tax on the transaction because it was made on the internet.
Discriminatory taxes, on the other hand, are taxes that treat electronic commerce differently than mail-order purchases, or going into a real brick-and-mortar store. The discrimination counts if the tax is only imposed on e-commerce, is applied at a different rate, or the tax has different collection requirements.
State and local governments that already have taxes on internet access and e-commerce would be able to keep them in place, as this legislation would only apply to taxes imposed after this bill’s enactment — meaning that existing taxes would remain unchanged.