Quiz: Do you Know what the Internet Tax Freedom Act is?

By: Staff

4 Min Quiz

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About This Quiz

The Internet Tax Freedom Act, commonly referred to as ITFA, is a lucky tax break for those in the United States who like to surf the Web. Take this quiz to find out about the Internet Tax Freedom Act.

Why is the price on the price tag not necessarily the final price for an item?

The price on the tag might not yet include a sales tax, which raises the price.


What is the purpose of a sales tax?

The purpose is to raise funds for the government. Whenever you make a purchase, the government gets its cut.


How much is the sales tax for Internet access?

There's absolutely no sales tax on Internet access.


What did the Internet Tax Freedom Act (ITFA) stipulate no tax should be charged for?

ITFA made it a legal requirement that no taxes were to be charged for Internet use.


In what year was Internet Tax Freedom Act (ITFA) enacted?

ITFA was enacted in 1998 after a year-long moratorium on Internet taxes.


When does a "grandfather clause" apply?

A grandfather clause applies when an old rule is not superseded by a new law.


Which of these states were allowed to charge Internet tax because of an old rule prior to 1998?

Ohio and Texas and eight other U.S. states were entitled to continue charging an Internet tax.


Which committee was appointed to monitor the effectiveness of the Internet Tax Freedom Act?

The Advisory Commission of Electric Commerce was charged with monitoring the effectiveness of ITFA.


What additional moratorium was put into effect regarding electronic commerce?

It was a moratorium on "multiple and discriminatory taxes on electronic commerce" so that neither your state of residence nor the state of purchase could levy a tax.


When is the next scheduled discussion the Internet Tax Freedom Act?

It's scheduled to be discussed again on Nov. 1, 2014. Until then, the matter is closed.


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