Senate approves bill setting broadband assessment rate at 15% after lengthy debate

The Oklahoma State Senate on third reading approved SB 11 22, a measure to set the ad valorem assessment rate for centrally assessed broadband providers at 15 percent, after extended debate over local fiscal impacts and industry subsidies.

Senator Rader (author) said the bill “will level the competitive playing field amongst providers” and argued the change would encourage broadband investment in underserved areas. Supporters framed the measure as a tool to make Oklahoma more competitive and to encourage companies to expand service into rural counties that previously had no taxable broadband infrastructure.

Opponents argued the change would reduce local tax collections and disproportionately benefit large, existing providers. Senator Sarah Saccheri said, “I think we have given broadband plenty of incentive and subsidy at this point,” and warned the measure carves out a single industry while other property taxpayers and small businesses continue to shoulder tax burdens. Senator McIntosh cited the fiscal impact statement to note that local jurisdictions would see an estimated $20,000,000 reduction in collections and that assessed value on affected property could fall by about $187,900,000 if the change were applied broadly.

The author acknowledged the fiscal estimate but said supporters expect new taxable activity in formerly untaxed areas as companies expand service, arguing that the state would still generate new tax revenue from areas that previously had none. When pressed about who would ultimately bear the cost, Rader said the measure “is going to level the playing field” and that the change would apply statewide across providers.

The debate included broader accusations about the scale of public subsidies for broadband. The senator from Shawnee criticized past broadband funding as a “boondoggle” and cited federal and state programs and grants cited during floor debate. The author and other supporters responded that incentives and investments are intended to produce service in areas that otherwise would remain without internet access.

The Senate advanced the bill by voice to final passage and the roll call recorded 28 ayes and 19 nays. The measure passed and will proceed according to the legislative process for enrollment and transmission to the next step. No amendment text or effective date was specified on the floor record published in the transcript.

Next steps: the enacted text, effective date and any implementing rules or administrative changes (including the fiscal and system modifications noted by the fiscal impact statement) will determine final local impacts; the transcript shows the Oklahoma Tax Commission (OTC) estimated an additional one-time system cost of about $372,000 to implement changes in its systems.