After almost 14 years of enjoying grandfathered status under the federal Internet Tax Freedom Act of 1998 and its extensions (the Internet tax moratorium), effective June 21, 2012, New Hampshire ceased imposing its communications services tax on Internet access charges. Further, existing assessments on Internet access charges are unenforceable.
Per enacted H.B. 1418, the New Hampshire Department of Revenue Administration must withdraw all such pending assessments and can no longer issue any additional assessments with respect to such charges. Taxpayers with outstanding communications services tax audits should review their assessments in order to remove taxes imposed on Internet access, and taxpayers purchasing Internet access on or after June 21, 2012 should not pay communications services tax on the applicable charges.