The US Senate voted overwhelmingly last week to approve the extension, while the House had two weeks earlier approved a four-year extension of the internet’s tax free status.

The internet tax ban was originally approved in 1998, but was due to expire on November 1. Though there had been efforts among some lawmakers to make the tax ban permanent, those efforts were ultimately unsuccessful.

The Senate moratorium extension received strong support from both side of the chamber.

In a joint-statement issued after the vote Democrat Senator Tom Carper and Republican Senator Lamar Alexander – who jointly introduced the bill – said the extension was a commonsense compromise.

“This agreement is a common sense victory both for internet users and for state and local governments,” the Senators said.

“It continues the moratorium on Internet taxation, avoids unfunded federal mandates on states and cities, updates the definition of Internet access, and allows Congress to revisit the issue after seven years.”

The two Chambers will now have to reach a compromise on the length of the moratorium and some other fine-print detail before it can be sent to President George Bush for his signature.