Oklahoma 2023 1st Special Session

Oklahoma Senate Bill SB34

Introduced
5/17/23  
Refer
5/18/23  
Report Pass
5/23/23  
Engrossed
5/24/23  
Enrolled
5/26/23  

Caption

Sales tax exemption; requiring exemption be operative upon certain date; terminating certain calculation. Emergency.

Impact

The implications of SB34 are primarily economic and infrastructural, intending to enable broader access to broadband services throughout Oklahoma. By offering tax incentives for broadband infrastructure, the bill is designed to promote economic development and digital equity, potentially boosting local economies in historically underserved regions. Proponents argue that increased broadband access will facilitate growth in various sectors, including education, healthcare, and business, by providing essential digital connectivity that many residents and businesses currently lack.

Summary

Senate Bill 34 (SB34) introduces a significant update to the Oklahoma Sales Tax Code by providing a sales tax exemption for specific broadband equipment purchases by Internet service providers. This bill aims to incentivize the improvement and expansion of broadband services in the underserved and unserved areas of Oklahoma. It establishes a cap on the total rebates that can be distributed, set at $42 million, with allocations focused on both sparsely and densely populated counties. The effective date for the exemption is tied to equipment purchased between January 1, 2022, and December 31, 2023, with additional stipulations for timely claims for rebate applications to the Oklahoma Tax Commission.

Sentiment

Discussions around SB34 reflect a positive sentiment among supporters, particularly those in the telecommunications and rural development sectors, who view the bill as a step forward for addressing digital divides. However, there are concerns raised by critics about the long-term effects on state revenue and the adequacy of the rebate program to genuinely stimulate the intended growth in broadband services. Some skeptics warn that unless effectively regulated and monitored, such programs could lead to systemic inequalities where certain populations may still remain underserved despite the incentives offered.

Contention

A notable point of contention regarding SB34 arises from the conditions tied to the rebate applications. Critics emphasize the need for robust criteria to ensure that only legitimate broadband expansion projects benefit from these financial incentives. Furthermore, some stakeholders express apprehension about the reliance on government oversight to equitably distribute the funding, highlighting the risk of bureaucracy potentially undermining the bill's objectives. The bill's language around defining eligible 'underserved' and 'unserved' areas brings additional complexity, as stakeholders call for clearer definitions to enhance transparency and accountability in the program's implementation.

Companion Bills

No companion bills found.

Previously Filed As

OK HB1130

Revenue and taxation; sales tax exemptions; broadband equipment; modifying provisions of exemption; modifying reference; emergency.

OK SB393

Sales tax exemption; providing exception to limit for disabled veterans exemption. Effective date.

OK HB2027

Revenue and taxation; sales tax exemption; hearing aids; effective date; emergency.

OK SB463

Sales tax exemption; extending date for rolling stock exemption. Effective date.

OK HB2733

Revenue and taxation; sales tax; exemptions; diapers; formula; effective date; emergency.

OK HB2312

Revenue and taxation; sales tax; exemptions; disabled veterans; surviving spouses; disability determination; effective date; emergency.

OK HB2665

Revenue and taxation; sales tax; exemptions; veterans; surviving spouse; effective date; emergency.

OK HB2602

Revenue and taxation; sales tax exemptions; flat bed additions; vehicles; agriculture; livestock; effective date; emergency.

OK HB2732

Revenue and taxation; sales tax exemptions; veterans; surviving spouses; children; effective date; emergency.

OK HB1348

Heavy equipment rentals; recovery fee; exemptions; requiring report to Tax Commission; effective date; emergency.

Similar Bills

OK HB2946

Revenue and taxation; sales tax exemptions; broadband; rebate claims; formula; effective date; emergency.

OK HB1130

Revenue and taxation; sales tax exemptions; broadband equipment; modifying provisions of exemption; modifying reference; emergency.

OK HB1130

Revenue and taxation; sales tax exemptions; broadband equipment; modifying provisions of exemption; modifying reference; emergency.

OK HB2040

Telecommunications; Rural Broadband Expansion Council; allowing legislators to have chair or co-chair position; guidelines for broadband incentive awards; emergency.