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Bill

Bill

SB 1405

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

89th Legislature (2025) Introduced by Trent Ashby and 2 co-sponsors

Texas law reducing internet service taxes and mandating expanded broadband access to increase connectivity and affordability statewide.

Effective on . . . . . . . . . . . . . . .
#broadbanddevelopmentoffice(v62yt) #broadbandnetworks(s0643) #comptrollerofpublicaccounts(v2608) #internet(s0130) #statefinances--management&control(i0748) #taxation--general(i0815) #taxation--sales(i0800) #utilities--telecommunications(i0828)
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WeVote Research Nonpartisan
Bill Summary · SB 1405

Legislative bill overview

SB 1405 expands internet service access across Texas while reducing tax burdens on internet services. The bill was signed into law on June 20, 2025, and aims to make broadband more affordable and widely available, particularly in underserved areas.

Why is this important

Internet access has become essential infrastructure for education, employment, and economic opportunity. Reducing taxation on internet services can lower consumer costs, while increased access initiatives help close the digital divide between urban and rural communities, potentially affecting millions of Texans' ability to participate in the digital economy.

Potential points of contention

  • Tax revenue impact: Reducing internet service taxes decreases state revenue, which must be offset elsewhere or result in reduced government spending
  • Rural vs. urban implementation: Ensuring equitable access expansion to sparsely populated areas may be costly and logistically challenging, raising questions about cost-sharing between providers and government
  • Service provider obligations: The bill may impose requirements on telecommunications companies that they argue are burdensome or economically unfeasible, particularly for smaller providers

Compiled from official sources — confirm details with the bill’s official record.

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