Over 70 million U.S. adults log on to access the Internet during a typical day. As public use of the Internet grew from the mid-1990s onward, Internet access became a potential target for state & local taxation. In 1998, Congress imposed a moratorium temporarily preventing state & local governments from imposing new taxes on Internet access. This report determines the scope of the moratorium & its impact, if any, on state & local revenues. It reviewed the moratorium's language, its legislative history, & associated legal issues; examined studies of revenue impact; interviewed people knowledgeable about access services; & collected info. about 8 case study states not intended to be representative of other states. Charts & tables.