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Committee Adopts Amendment for Rural Broadband Equipment Sales‑Tax Exemption

Senate Revenue & Tax Committee · April 19, 2021
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Revenue & Tax Committee adopted an amendment to Senate Bill 605 to limit a sales‑tax exemption for broadband equipment to counties with populations of 20,000 or fewer; DFA estimated a $2.0M first‑year (9‑month) state revenue reduction and a $2.6M full‑year impact.

Senate Bill 605, sponsored by Senator Mark Johnson (Senate, Dist. 15), advanced after the committee adopted an amendment carving out eligibility for counties with populations at or below 20,000. The bill would exempt from sales tax broadband equipment costs paid from company funds (excluding equipment paid with CARES Act or similar grant funds) to encourage deployment in rural, underserved areas.

"This bill…

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