Michigan House Bill HB4208

Michigan 2023-2024 Regular Session

• Introduced: 3/8/23
• Refer: 3/8/23

Caption

Property tax: exemptions; eligible broadband equipment; exempt from personal property tax. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 9q. TIE BAR WITH: HB 4207'23

Impact

The implementation of HB 4208 is expected to incentivize the installation of high-speed internet infrastructure, particularly in underserved areas. By reducing the tax burden on businesses involved in expanding broadband networks, the legislation supports state efforts to improve internet access. Furthermore, it aligns with federal initiatives aimed at enhancing rural broadband connectivity, potentially benefiting numerous residents and local economies that rely on reliable internet services.

Summary

House Bill 4208 proposes amendments to the General Property Tax Act concerning property tax exemptions for certain broadband-related equipment. This bill aims to stimulate the expansion of broadband services by exempting eligible equipment from property tax. Beginning December 31, 2023, eligible broadband equipment used by qualified businesses will be exempt, provided it directly contributes to resolving lack of broadband service by meeting specific speed thresholds for internet access.

Contention

While the bill is positioned as a necessary step toward increasing broadband accessibility, there may be concerns regarding tax revenue implications. The state treasurer is tasked with estimating revenue losses from these exemptions annually, which could impact funding for public services reliant on property taxes. Additionally, discussions may arise around the criteria for qualifying businesses and whether the measures effectively address the varying levels of broadband access experienced across the state.