Finance committee clears bill to extend sales-tax exclusion to internet access

The House Finance Committee voted to report House Bill 1503, which would exclude Internet access from the state sales-and-use tax, bringing parity with mobile telecommunication services.

Shannon Snell, senior committee research analyst, told the committee that “House bill 15 o 3 would exclude the producing of Internet access as defined in the federal Internet Tax Freedom Act from the sales and use tax.” Snell said the change is intended to reflect that consumers now use cellular data to access the Internet and that the original exclusion for mobile telecommunications did not anticipate that use.

Representative Gogener, a member of the committee and lead sponsor on related preservation legislation later in the hearing, did not sponsor this bill; the committee moved the bill up for a vote earlier in the meeting. Chair Griner said the committee had a “good discussion” and encouraged members to vote in favor of the measure.

Representative Debanzo said the change would “go a long way in ensuring that the dollars we receive will be going out for the installation of broadband.”

A committee member moved to bring up House Bill 1503 and the committee called for a vote. The measure was reported from the finance committee unanimously.

The bill as described would rely on the federal Internet Tax Freedom Act’s definition of Internet access; the committee did not take a floor vote on final statutory text during this meeting. The committee record shows the measure was reported and could proceed to further consideration at a subsequent floor or calendar stage.

Meeting context: the item was taken early in the meeting and the committee recorded a unanimous report-out vote. No amendments or roll-call breakdown were recorded in the committee minutes provided.

Next steps: the bill was reported by the committee and may be scheduled for further floor or procedural consideration under the House rules.