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Regular Session, 2014 APPROVED
SENATE STUDY REQUEST NO. 4
BY SENATOR MARTINY
A STUDY REQUEST
To request the Senate Committee on Revenue and Fiscal Affairs to meet and study the
effects of exempting communications networks from certain taxes.
WHEREAS, American consumers in their everyday lives increasingly rely upon
high-speed communications networks for work, entertainment, emergency communications,
and other purposes; and
WHEREAS, communications networks have become an integral part of the business
process for millions of American businesses in sectors as diverse as agriculture, health care,
manufacturing, retail, transportation, and many others; and
WHEREAS, communications networks, both wired and wireless, have become
essential to the delivery of government services and have the potential to allow for more
efficient and cost-effective delivery of government services; and
WHEREAS, the United States is a technology leader in the field of wired and
wireless broadband deployment; and
WHEREAS, this technology leadership has allowed American businesses to lead the
way in the global marketplace in areas such as applications development, "cloud-based"
services, and the utilization of software in the communications networks; and
WHEREAS, the rapid adoption of new communications technologies by American
businesses and consumers requires the investment of tens of billions of dollars to keep pace
with the exponential growth in demand for network capacity; and
WHEREAS, state economic growth and competitiveness is dependent upon the
deployment of modern, efficient communications networks; and
WHEREAS, a study by Dr. Raul Katz at Columbia University reportedly found that
sales taxes on communications networks investment reduce economic growth by increasing
the cost of investment and slowing communications networks investment, and concluded
that eliminating sales taxes on communications networks investment in the states that
impose these taxes could increase economic growth by thirty-three billion dollars and lead
to the creation of 243,000 jobs within three years; and SSR NO. 4 APPROVED
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WHEREAS, the National Conference of State Legislatures supports the policy goal
of encouraging deployment of high-speed communications networks across all states,
including rural and under-served areas.
THEREFORE, the Legislature of Louisiana requests that the Senate Committee on
Revenue and Fiscal Affairs to meet and study the effects of exempting communications
networks from certain taxes.
A copy of this Study Request shall be transmitted to the secretary of the Department
of Revenue.