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Senate committee considers expanding sales-tax exemption to broadband providers, debates effect of the word 'primarily'
Summary
The Minnesota Senate Taxes Committee heard multiple bills to clarify or expand a sales-tax exemption for communications equipment so broadband providers pay no sales tax on fiber and conduit; lawmakers and industry witnesses said inconsistent Department of Revenue audits have caused disputes over the statute's word "primarily."
Senate Taxes Committee members on Feb. 18 heard two related bills that would clarify and expand a sales-tax exemption for communications equipment so that broadband providers qualify for the exemption.
Senator Putnam introduced Senate File 883 and offered an A1 amendment, which the committee adopted by voice vote. "As of January 2025, 390,000 Minnesota households lack access to broadband speeds of 100 to 20 MBPS," Senator Putnam said, adding that "62,000 households in the state of Minnesota do not have fundamental basic internet access." The bill would expand an existing sales-tax exemption for fiber and conduit purchased or leased by telecommunications or…
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