Rhode Island 2024 Regular Session

Rhode Island House Bill H7256

Introduced
1/19/24  

Caption

Exempts machinery and equipment used to provide broadband communications service the from the sales and use tax.

Impact

If enacted, this legislation would significantly alter revenue collection dynamics for the state, considering that sales and use taxes are a critical component of state revenue. By exempting machinery and equipment for broadband services, the state may decrease short-term revenue from these taxes. However, proponents of the bill argue that the long-term benefits, including improved internet access and economic growth through enhanced communications infrastructure, could outweigh the initial revenue losses. The measure is expected to support both residential and commercial sectors by facilitating better internet service delivery.

Summary

House Bill 7256 proposes the exemption of machinery and equipment used to provide broadband communications services from the sales and use taxes in the state of Rhode Island. This exemption is specifically aimed at fostering the growth of broadband infrastructure, which is crucial for expanding access to high-speed internet across the state. The bill identifies various components that constitute the machinery and equipment eligible for tax exemption, ensuring that entities providing such services are incentivized to invest and enhance their infrastructure.

Contention

The discussions around HB 7256 may highlight concerns regarding the financial impacts on the state budget, particularly amid debates about whether such exemptions prioritize broadband infrastructure needs over immediate state revenue needs. Critics may argue that the measure could disproportionately benefit larger telecommunication companies while smaller local providers struggle without similar means of financial relief. This contention points out the broader conversations about equity in telecommunications across varying economic landscapes within the state.

Companion Bills

No companion bills found.

Previously Filed As

RI S0208

Sales And Use Taxes -- Liability And Computation

RI S0217

Sales And Use Taxes -- Liability And Computation

RI H6015

Sales And Use Taxes -- Liability And Computation

RI S0552

Sales And Use Taxes -- Liability And Computation

RI S0209

Sales And Use Taxes -- Liability And Computation

RI S0269

Sales And Use Taxes -- Liability And Computation

RI S0082

Sales And Use Taxes -- Liability And Computation

RI H5476

Sales And Use Taxes--liability And Computation

RI H5627

Sales And Use Taxes--liability And Computation

RI S0557

Sales And Use Taxes -- Liability And Computation

Similar Bills

RI S2166

Exempts machinery and equipment used to provide broadband communications service the from the sales and use tax.

RI S0552

Sales And Use Taxes -- Liability And Computation

RI H6015

Sales And Use Taxes -- Liability And Computation

RI S2667

Registration Of Vehicles -- Registration Of Commercial Fishing Vehicles

RI H8252

Registration Of Commercial Fishing Vehicles

RI H8032

Amends tax law on renewable energy products to exempt certain additional products from sales tax including battery energy storage system equipment, if supplied by a manufacturer of solar photovoltaic equipment.

RI S2961

Exempts battery energy storage system equipment, solar thermal collectors for commercial applications and solar storage tanks that are part of a commercial solar hot water system from the state sales tax.

RI S0082

Sales And Use Taxes -- Liability And Computation