Mississippi House Bill HB1059

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Broadband equipment speed; increase to FCC requirement regarding ad valorem tax exemption.

Impact

The changes introduced by HB 1059 are expected to positively influence broadband infrastructure development across rural areas in Mississippi. By offering a ten-year ad valorem tax exemption for qualifying telecommunications companies installing equipment that meets the new speed requirements, the bill encourages investment into broadband services, particularly in Tier 2 and Tier 3 counties. This financial incentive aims to expand internet coverage and improve service quality for residents and businesses in these underserved regions.

Summary

House Bill 1059 aims to enhance broadband access in Mississippi by amending Section 57-87-7 of the Mississippi Code of 1972. The bill proposes to increase the minimum download and upload speeds for equipment used in broadband deployment from 384 kilobits per second to 25 megabits per second and 3 megabits per second, respectively. This amendment is intended to align state standards with the Federal Communications Commission (FCC) requirements for high-speed internet.

Contention

Despite its intention to enhance broadband access, there may be concerns regarding the implementation of such tax exemptions. Critics may argue that without careful oversight, the exemptions could lead to unregulated expansion practices by telecommunications companies. Furthermore, some stakeholders might point out that achieving the required service speeds can be costly, potentially limiting participation to only larger corporations, which could hinder local, smaller providers from competing effectively in the broadband market.