3086 would have no impact on the federal budget, but beginning in 2014, it would impose significant annual costs on some state and local governments.

CBO estimated that the direct costs to states and local governments would probably total more than several hundred million dollars annually.

[6] The Permanent Internet Tax Freedom Act was introduced into the United States House of Representatives on September 12, 2013 by Rep. Bob Goodlatte (R, VA-6).

[4][3] This bill would end that grandfather clause, resulting in a handful of states losing about $500 million a year in combined taxes.

Goodlatte said that in "our new digital economy" a "computer and internet access serve as a gateway - if not a necessity - for the American Dream.

Millions of Americans now rely on the internet to run their businesses, to educate themselves, to seek new opportunities, to research and write, and to communicate with family and friends.

"[5] The Center on Budget and Policy Priorities criticized the legislation, calling it "harmful" and claiming that it "would cost states up to $7 billion in potential annual revenue.