In 1998, Congress passed the Internet Tax Freedom Act, which placed a moratorium on taxing Internet transactions. The moratorium has now been lifted, and states are free to tax all items sold on the Internet under each state's sales tax rules.

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The Internet Tax Freedom Act, originally passed in 1998, has been extended multiple times and was made permanent in 2016, continuing the moratorium on taxing Internet access, not on transactions or sales made over the Internet. States can still tax online sales if they meet certain criteria established by the Supreme Court in 2018 (South Dakota v. Wayfair, Inc.).

In 1998, Congress Passed the Internet Tax Freedom Act, Which