Provides for real property tax exemptions for last mile broadband infrastructure constructed, altered, installed or improved in an area designated a broadband opportunity area.
Impact
If enacted, this bill would facilitate significant changes to property tax exemptions for telecommunications service providers. Specifically, the legislation proposes that any new last-mile broadband infrastructure constructed within these designated opportunity areas would be exempt from real property taxes and special ad valorem levies. This potential tax incentive is geared towards attracting private sector investment in broadband services, addressing connectivity gaps, and ultimately fostering economic development in rural and underserved urban areas.
Summary
Bill S07845 seeks to amend the real property tax law and the urban development corporation act in New York State to establish broadband opportunity areas. It aims to promote the installation and improvement of last-mile broadband infrastructure in areas that currently lack adequate broadband internet access. The introduction of these designated areas is intended to enhance internet connectivity, particularly in underserved or unserved census tracts, thereby improving overall community infrastructure and promoting economic growth.
Contention
While the bill is primarily focused on improving broadband accessibility, there are potential points of contention regarding its implementation. Critics may argue that the designation of broadband opportunity areas could lead to regulatory complexity, particularly concerning local governments' ability to manage and govern these zones. Additionally, there are concerns about ensuring that the services delivered meet specific quality standards, including the speed of internet access that providers must meet to qualify for tax exemptions. Ensuring compliance and maintaining effective oversight over these projects could raise operational challenges for municipalities and state agencies alike.
Same As
Provides for real property tax exemptions for last mile broadband infrastructure constructed, altered, installed or improved in an area designated a broadband opportunity area.
Provides for a refundable tax credit for costs paid for new construction of new broadband networks to residences and small businesses located in rural, unserved areas.