SB 321

This bill exempts property used to provide broadband service to a rural or

underserved area from the telephone company tax that is paid by telephone

companies in lieu of the general property tax. To qualify for the exemption, property

installed prior to January 1, 2020, must be used to provide Internet access service

to a rural area at a download speed of at least 25 megabits per second and an upload

speed of at least 3 megabits per second. Property installed after December 31, 2019,

must be used to provide Internet access service to a rural or underserved area at

those same speeds or, if higher, speeds designated by the Federal Communications

Commission. Under the bill, an “underserved area” is any area in the state served

by fewer than two wired service providers, and a “rural area” is any area in the state

that is located outside a federal metropolitan statistical area or is located in a city,

village, or town with a population of not more than 14,000.

For property installed

prior to January 1, 2020, the determination of whether an area is a rural area is

based on the 2010 federal decennial census.

Because this bill relates to an exemption from state or local taxes, it may be

referred to the Joint Survey Committee on Tax Exemptions for a report to be printed

as an appendix to the bill.