Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3117 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 3663 FILED ON: 1/17/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3117
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Richard M. Haggerty
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to support disaster response and broadband infrastructure affordability.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Richard M. Haggerty30th Middlesex1/17/2025 1 of 8
16	16	HOUSE DOCKET, NO. 3663 FILED ON: 1/17/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3117
18	18	By Representative Haggerty of Woburn, a petition (accompanied by bill, House, No. 3117) of
19	19	Richard M. Haggerty relative to the taxation of disaster response and broadband infrastructure.
20	20	Revenue.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Fourth General Court
24	24	(2025-2026)
25	25	_______________
26	26	An Act to support disaster response and broadband infrastructure affordability.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 SECTION 1. Subsection (a) of section 18H of chapter 6A of the General Laws, as
30	30	2appearing in the 2020 Official Edition, is hereby amended by striking out the seventh sentence
31	31	3and inserting in place thereof the following sentence:
32	32	4 The provisions of this subsection shall not apply to prepaid wireless service as defined in
33	33	5section 18A.
34	34	6 SECTION 2. Chapter 62C of the General Laws is hereby amended to add the following
35	35	7new section:
36	36	8 Section 89. (a)The following words as used in this section shall, unless the context
37	37	9otherwise requires, have the following meanings
38	38	10 “Registered business in the commonwealth”, a business entity that is currently registered
39	39	11to do business in the state prior to the declared state disaster or emergency. 2 of 8
40	40	12 “Out-of-state business”, a business entity that, except for disaster or emergency related
41	41	13work, has no presence in the commonwealth and conducts no business in the commonwealth
42	42	14whose services are requested by a registered business in the commonwealth or by the
43	43	15commonwealth or local government for purposes of performing disaster or emergency related
44	44	16work in the commonwealth. This shall also include a business entity that is affiliated with the
45	45	17registered business in the commonwealth solely through common ownership. The out-of-state
46	46	18business has no registrations or tax filings or nexus in the commonwealth other than disaster or
47	47	19emergency related work during the tax year immediately preceding the declared state disaster or
48	48	20emergency.
49	49	21 “Out-of-state employee”, an employee who does not work in the commonwealth, except
50	50	22for disaster or emergency related work during the disaster response period.
51	51	23 “Critical infrastructure”, property and equipment located in the commonwealth that is
52	52	24owned or used by communications networks; cable, video, or broadband networks; gas and
53	53	25electric distribution systems; water pipelines; railways; public roads and bridges; and related
54	54	26support facilities that service multiple customers, including but not limited to real and personal
55	55	27property such as buildings, offices, lines, poles, pipes, structures, and equipment.
56	56	28 “Declared state disaster or emergency”, disaster or emergency event (1) for which a
57	57	29Governor's state of emergency declaration has been issued, (2) for which a Presidential
58	58	30declaration of a federal major disaster or emergency has been issued, or (3) for which a response
59	59	31has been requested by a public safety or governmental agency in the commonwealth.
60	60	32 “Disaster or emergency related work”, repairing, renovating, installing, building,
61	61	33rendering services or other business activities that relate to critical infrastructure that has been 3 of 8
62	62	34damaged, - destroyed, or lost as a result of the declared state disaster or emergency during the
63	63	35disaster response period; or any action taken in response to a request from a public safety or
64	64	36governmental agency in the commonwealth.
65	65	37 “Disaster response period” means a period that begins ten days prior to the first day of the
66	66	38governor’s declaration, or the President’s declaration, or the request for a response to a disaster
67	67	39or emergency event issued by a public safety or governmental agency, whichever occurs first,
68	68	40and that extends sixty days after the end of the declared state disaster or emergency.
69	69	41 (b)An out-of-state business that conducts operations within the commonwealth for
70	70	42purposes of performing work or services on critical infrastructure damaged, destroyed, or lost as
71	71	43a result of a declared state disaster or emergency during the disaster response period shall not be
72	72	44considered to have established a level of presence that would require that business to register, file
73	73	45or remit state or local taxes or that would require that business or its out of state employees to be
74	74	46subject to any state licensing or registration requirements; inclusive of all state or local business
75	75	47licensing or registration requirements or state and local taxes or fees including, but not limited to,
76	76	48unemployment insurance, state or local occupational licensing fees and sales and use tax or ad
77	77	49valorem tax on equipment brought into the commonwealth temporarily for use during the
78	78	50disaster response period and subsequently removed from the commonwealth, public service
79	79	51commission or secretary of state licensing and regulatory requirements. For purposes of any state
80	80	52or local tax on or measured by, in whole or in part, net or gross income or receipts, all activity of
81	81	53the out-of-state business that is conducted in this commonwealth pursuant to this section shall be
82	82	54disregarded with respect to any filing requirements for such tax including the filing required for a
83	83	55unitary or combined group of which the out-of-state business may be a part. For the purpose of
84	84	56apportioning income, revenue, or receipts the performance by an out-of-state business of any 4 of 8
85	85	57work in accordance with this section shall not be sourced to or shall not otherwise impact or
86	86	58increase the amount of income, revenue, or receipts apportioned to the commonwealth.
87	87	59 (c) Any out-of-state employee shall not be considered to have established residency or a
88	88	60presence in the commonwealth that would require that person or that person’s employer to file
89	89	61and pay income taxes or to be subjected to tax withholdings or to file and pay any other state or
90	90	62local tax or fee during the disaster response period, including related state or local employer
91	91	63withholding and remittance obligations.
92	92	64 (d) Out-of-state businesses and out-of-state employees shall be required to pay
93	93	65transaction taxes and fees including but not limited to fuel taxes or sales/use taxes on materials or
94	94	66services consumed or used in the commonwealth subject to sales or use tax, hotel taxes, car
95	95	67rental taxes or fees that the out-of-state affiliated business or out-of-state employee purchases for
96	96	68use or consumption in the commonwealth during the disaster response period, unless such taxes
97	97	69are otherwise exempted during a disaster response period.
98	98	70 (e)Any out-of-state business or out-of-state employee that remains in the commonwealth
99	99	71after the disaster response period will become subject to the commonwealth’s normal standards
100	100	72for establishing presence, residency or doing business in the commonwealth and will therefore
101	101	73become responsible for any business or employee tax requirements that ensue.
102	102	74 (f) (1) The out-of-state business that enters the commonwealth shall, upon request,
103	103	75provide to the department a statement that it is in the commonwealth for purposes of responding
104	104	76to the disaster or emergency, which statement shall include the business’ name, state of domicile,
105	105	77principal business address, federal tax identification number, date of entry, and contact
106	106	78information. (2) A registered business in the commonwealth shall, upon request, provide the 5 of 8
107	107	79information required in subsection (1) of this section for any affiliate that enters the
108	108	80commonwealth that is an out-of-state business. The notification shall also include contact
109	109	81information for the registered business in the commonwealth.
110	110	82 (g) An out-of-state business or an out-of-state employee that remains in the
111	111	83commonwealth after the disaster response period shall complete state and local registration,
112	112	84licensing and filing requirements that ensue as a result of establishing the requisite business
113	113	85presence or residency in the commonwealth applicable under the existing rules.
114	114	86 (h)The department shall promulgate necessary regulations, develop and issue forms or
115	115	87online processes, and maintain and make available an annual record of any designations pursuant
116	116	88to this section.
117	117	89 SECTION 3. Section 1 of Chapter 64H of the General Laws, as so appearing in the 2020
118	118	90Official Edition, is hereby amended by inserting, after the definition of “Retail establishment”,
119	119	91the following new definitions:-
120	120	92 “Critical telecommunications infrastructure”, property and equipment located within the
121	121	93Commonwealth that is owned or used by a licensed provider of telecommunication services for
122	122	94purposes of distributing, transmitting, monitoring, switching, routing, or producing
123	123	95telecommunications services and related support facilities that service multiple customers,
124	124	96including but not limited to real and personal property such as buildings, office, lines, poles,
125	125	97pipes, structures and equipment.
126	126	98 “Qualified truck”, commercial motor vehicle that has 2 axles and a gross vehicle weight
127	127	99rating in excess of 10,000 pounds or a commercial motor vehicle that has 3 or more axles. 6 of 8
128	128	100 “Rolling stock”, qualified truck, trailer drawn behind a qualified truck, and parts or other
129	129	101tangible personal property affixed to or to be affixed to and used in the operation of a qualified
130	130	102truck or trailer.
131	131	103 SECTION 4. Section 6 of Chapter 64H of the General Laws, as amended by Chapter
132	132	104238, Laws 2024, is hereby further amended by inserting, after subsection (zz), the following new
133	133	105subsection:-
134	134	106 “(aaa) sales of rolling stock used by a licensed provider of telecommunications services
135	135	107to transport goods in interstate commerce or to perform work or services on critical
136	136	108telecommunications infrastructure in response to a request from a public safety or other
137	137	109governmental agency or to support the continuation or repair of telecommunications services
138	138	110during a weather-related emergency in the Commonwealth.
139	139	111 For purposes of this paragraph, a licensed provider of telecommunications services shall
140	140	112substantiate the need to respond to a request from a public safety or other governmental agency
141	141	113or to support the continuation or repair of telecommunications services during a weather-related
142	142	114emergency, at such time and in such a manner as the Commissioner shall determine to be
143	143	115necessary and appropriate; provided, however, that the need shall be deemed to be substantiated
144	144	116by the Commissioner if the documentation demonstrating the request for the deployment, the
145	145	117nature and duration of the deployment, and a complete and accurate listing of rolling stock used
146	146	118to perform work or services on critical telecommunications infrastructure.”
147	147	119 SECTION 5. Section 6 of Chapter 64H of the General Laws, as amended by Chapter
148	148	120238, Laws 2024, is hereby further amended by inserting, after subsection (aaa), the following
149	149	121new subsection:- 7 of 8
150	150	122 (bbb) Sales of machinery, equipment, or replacement parts thereof, to a communications
151	151	123service provider to be used in the provision of broadband communications services. For the
152	152	124purposes of this paragraph:
153	153	125 (A) “Machinery, equipment, or replacements parts thereof” includes, but is not limited to,
154	154	126wires, cables, fiber, conduits, antennas, poles, switches, routers, amplifiers, rectifiers, repeaters,
155	155	127receivers, multiplexers, duplexers, transmitters, circuit cards, insulating and protective materials
156	156	128and cases, power equipment, backup power equipment, diagnostic equipment, storage devices,
157	157	129modems, and other general central office or headend equipment, such as channel cards, frames,
158	158	130and cabinets, or equipment used in successor technologies, including items used to monitor, test,
159	159	131maintain, enable, or facilitate qualifying equipment, machinery, software, ancillary components,
160	160	132appurtenances, accessories, or other infrastructure that is used in whole or in part to provide
161	161	133broadband communications services.
162	162	134 (B) “Broadband communications services” means telecommunications service, video
163	163	135programming service, internet access service, or any combination thereof.
164	164	136 (C) “Telecommunications service” means the same as defined in section 1 of this chapter
165	165	137sixty-four H.
166	166	138 (D) “Video programming service” means the sale, offering, transmission, conveyance, or
167	167	139routing of video programming or other video content for purchase by subscribers or customers,
168	168	140regardless of the medium, technology, or method of display and regardless of the payment
169	169	141schedule or storage method used to purchase or access such video programming or video
170	170	142content. The term shall also include, but shall not be limited to, the provision of video
171	171	143programming by a multichannel video programming distributor, as defined in paragraphs (20) 8 of 8
172	172	144and (13) of 47 U.S.C. Section 522, including cable service, as defined in 47 U.S.C. Section 522
173	173	145and any substantially equivalent successor technology.
174	174	146 (E) “Internet access service” has the same meaning as in Section 1105(5) of the Internet
175	175	147Tax. Freedom Act, 47 United States Code, Section 151, Note.
176	176	148 SECTION 6. Section 1 of chapter 64I, as so appearing, is hereby amended by inserting in
177	177	149line 6, after the words “retail sale”, the following new words:- ", rolling stock”, “qualified
178	178	150truck”, “critical telecommunications infrastructure”.
179	179	151 SECTION 7. Section 7 of chapter 64I, as so appearing, is hereby amended by inserting,
180	180	152after subsection (e), the following new subsection:-
181	181	153 (f) Storage, use or other consumption of rolling stock that is exempt from tax pursuant to
182	182	154subsection (yy) of section 6 of chapter 64H".
183	183	155 SECTION 8. Section 5 of this Act shall take effect for sales occurring on and after July
184	184	1561,2025.