Exempts purchases of certain equipment by broadband providers from sales and use tax. (gov sig) (Item #39) (OR DECREASE GF RV See Note)
Should SB 28 be enacted, it would have a significant impact on state tax law, specifically regarding the imposition of sales taxes on broadband-related purchases. This exemption would remain effective from January 1, 2021, through June 30, 2025, promoting a favorable environment for broadband providers and potentially increasing the accessibility of internet services for residents across the state. The law aims to address barriers that may prevent the expansion of high-speed internet access to more rural or underserved areas.
Senate Bill 28 aims to stimulate the broadband industry in Louisiana by providing sales and use tax exemptions for a range of equipment used by broadband providers. Specifically, this bill exempts tangible personal property that is purchased or utilized by entities providing communications services or internet access. The exemption helps to alleviate the financial burden associated with purchasing necessary equipment, which can include all manner of technology from routers and servers to fiber optic cables and other telecommunications equipment.
The sentiment surrounding SB 28 appears to be largely positive among legislators and stakeholders in the technology and communications sectors. Proponents view the bill as a necessary step toward enhancing digital infrastructure and improving economic development through better internet access. However, some discussions hint at concerns regarding the long-term implications of tax exemptions versus state revenue potential, though these concerns do not seem to dominate the legislative narrative.
While there is support for SB 28, there may be points of contention regarding the adequacy of the exemption and whether it sufficiently addresses the needs of all broadband providers, particularly smaller, local companies that may feel overlooked by state incentives. Additionally, critics might argue that while exemptions can foster growth, they also limit state income from sales taxes, potentially affecting funding for other critical services.