Internet tax bill highlights brewing battle over online sales taxes

The House this week is poised to easily pass a bill banning the taxation of Internet access, but that bill will only shine a spotlight a disagreement brewing in Congress over whether and how to tax sales made over the Internet.

The Permanent Internet Tax Freedom Act is set for a vote as early as Tuesday. The bill, which would permanently prohibit states from taxing Internet access, passed the House by voice vote last year and it's expected to win overwhelming approval again.

The agreement in Congress on Internet taxation is likely to end there.

As soon as next week, House Oversight and Government Reform Committee Chairman Jason Chaffetz, R-Utah, will introduce the Remote Transaction Parity Act, which would allow states to require remote Internet retailers to collect sales taxes on online purchases.