SLS 14RS-4394 ORIGINAL
Page 1 of 2
Regular Session, 2014
SENATE STUDY REQUEST NO. 4
BY SENATOR MARTINY
TAX EXEMPTIONS. Requests study of the communication network equipment tax
exemption.
A STUDY REQUEST1
To request the Senate Committee on Revenue and Fiscal Affairs to meet and study the2
effects of exempting communications networks from certain taxes.3
WHEREAS, American consumers in their everyday lives increasingly rely upon4
high-speed communications networks for work, entertainment, emergency communications,5
and other purposes; and 6
WHEREAS, communications networks have become an integral part of the business7
process for millions of American businesses in sectors as diverse as agriculture, health care,8
manufacturing, retail, transportation, and many others; and9
WHEREAS, communications networks, both wired and wireless, have become10
essential to the delivery of government services and have the potential to allow for more11
efficient and cost-effective delivery of government services; and12
WHEREAS, the United States is a technology leader in the field of wired and13
wireless broadband deployment; and14
WHEREAS, this technology leadership has allowed American businesses to lead the15
way in the global marketplace in areas such as applications development, "cloud-based"16
services, and the utilization of software in the communications networks; and17
WHEREAS, the rapid adoption of new communications technologies by American18 SSR NO. 4
SLS 14RS-4394 ORIGINAL
Page 2 of 2
businesses and consumers requires the investment of tens of billions of dollars to keep pace1
with the exponential growth in demand for network capacity; and2
WHEREAS, state economic growth and competitiveness is dependent upon the3
deployment of modern, efficient communications networks; and4
WHEREAS, a study by Dr. Raul Katz at Columbia University reportedly found that5
sales taxes on communications networks investment reduce economic growth by increasing6
the cost of investment and slowing communications networks investment, and concluded7
that eliminating sales taxes on communications networks investment in the states that8
impose these taxes could increase economic growth by thirty-three billion dollars and lead9
to the creation of 243,000 jobs within three years; and10
WHEREAS, the National Conference of State Legislatures supports the policy goal11
of encouraging deployment of high-speed communications networks across all states,12
including rural and under-served areas.13
THEREFORE, the Legislature of Louisiana requests that the Senate Committee on14
Revenue and Fiscal Affairs to meet and study the effects of exempting communications15
networks from certain taxes. 16
A copy of this Study Request shall be transmitted to the secretary of the Department17
of Revenue.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ducharme.
DIGEST
Martiny SSR No. 4
Requests the Senate Committee on Revenue and Fiscal Affairs to meet and study the effects
of exempting communications networks from certain taxes.