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Panel advances bill clarifying sales-tax exemption for Next Generation 9‑1‑1 contracts
Summary
The subcommittee voted to advance H 5093, which staff and Revenue and Fiscal Affairs said is meant to clarify that amounts paid under contracts for emergency services IP networks (SEINet) supporting Next Generation 9‑1‑1 are excluded from sales tax; RFA said the measure codifies what it already treats as exempt.
The subcommittee gave H 5093 a favorable report to the full committee after staff and state fiscal staff described the measure as a clarification that would exempt amounts paid under contracts for emergency services IP networks that support Next Generation 9‑1‑1 from sales tax.
Staff summarized the bill by saying it "excludes the amounts paid for contracts for services entered into by the state or political subdivisions for emergency services IP network, SEINet, in support of Next Generation 9‑1‑1 in the state from sales tax."
Paul Lethy of the Revenue and Fiscal Affairs office said RFA manages the state 9‑1‑1 system and described the bill as "not a bill to request a new sales tax exemption. This is simply to clarify what we believe is already an exemption." He told the committee that the two statewide networks have not been charged sales tax over the last six to seven years because RFA considers them exempt; the Department of Revenue has urged clearer statutory language to remove ambiguity.
Committee members said removing ambiguity is important because uncertainty can lead to enforcement and retroactive assessments; after brief discussion the subcommittee voted by roll call to give H 5093 a favorable report (four ayes).
The bill will move to the full committee for further consideration.
