An existing three year moratorium on internet taxes is set to expire in October 2001. The tax immunity for dot.coms is criticised by bricks-and-mortar businesses that argue unfair competition. In addition, states and local governments have lost from a trade which, according to Forrester Research, has been worth $490 billion world-wide this year.
New legislation is being drafted by a task force that, if introduced, would simplify tax codes and allow certified third parties to calculate and collect taxes.