Texas 2025 - 89th Regular

Texas Senate Bill SB1405

Filed
2/19/25  
Out of Senate Committee
4/7/25  
Voted on by Senate
4/15/25  
Out of House Committee
5/12/25  
Bill Becomes Law
 

Caption

Relating to increasing access to and reducing taxation of Internet services.

Impact

The implementation of SB1405 will result in significant changes to the legal framework governing broadband services in Texas. It expands the definitions used in existing statutes to create a more comprehensive classification of serviceable locations based on the speed and reliability criteria. Additionally, the bill sets provisions for funding that prioritize projects in areas with limited access currently. As internet access becomes increasingly vital for education and business, this law will help bridge the digital divide that affects many underserved communities.

Summary

SB1405 is a legislative act designed to increase access to broadband services across the state of Texas while simultaneously reducing taxation on these services. It redefines qualifying broadband services to encompass higher speed requirements, aiming to ensure that areas deemed 'unserved' or 'underserved' receive adequate internet capabilities. This bill seeks not only to enhance connectivity but also to streamline the process for funding and deploying broadband infrastructure to ensure efficient access for all Texans, especially in rural regions.

Sentiment

Public sentiment regarding SB1405 appears to be largely positive among proponents who argue that enhancing broadband access is crucial for economic development and educational opportunities. Advocates praise the bill for prioritizing the needs of underserved populations. However, there are concerns among some stakeholders about the implications of reduced taxation on broadband services, fearing that it may lead to funding shortfalls for necessary infrastructure improvements or maintenance in the longer term.

Contention

One point of contention surrounding SB1405 is the potential impact of reducing taxes on internet services. Critics argue that while the immediate goal is to lower consumer costs, it may undermine state revenue that could be utilized for further infrastructural investments. Additionally, there are also debates about the prioritization process for funding, with some expressing concerns that it might favor certain areas or types of providers, which could lead to inequities in service distribution across different regions.

Texas Constitutional Statutes Affected

Government Code

  • Chapter 403. Comptroller Of Public Accounts
    • Section: 553
    • Section: 553
    • Section: 553
    • Section: 553
    • Section: 553
    • Section: 553
  • Chapter 490. Winding Up Contracts And State's Investment Portfolio In Connection With Awards From Texas Emerging Technology Fund
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Tax Code

  • Chapter 151. Limited Sales, Excise, And Use Tax
    • Section: 00394
    • Section: 0101
    • Section: 325
    • Section: 00394
    • Section: 325
    • Section: 00394
    • Section: 0101
    • Section: 00394
    • Section: 0101
    • Section: 0101
    • Section: 0101
  • Chapter 171. Franchise Tax
    • Section: 10132
    • Section: 10132
    • Section: 10132
    • Section: 10132
    • Section: 10132
    • Section: 10132
    • Section: 10132

Companion Bills

TX HB2838

Identical Relating to increasing access to and reducing taxation of Internet services.

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