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SB 925

Taxes, Sales - As enacted, sets the end date at June 30, 2027, for the exemption from sales and use tax for purchases and leases of equipment and infrastructure used to produce broadband communications services or provide internet access. - Amends TCA Title 67, Chapter 6, Part 3.

114th Regular Session (2025-2026) Introduced by Ed Jackson

Tennessee sunset tax exemption on broadband infrastructure purchases, effective June 30, 2027, requiring legislative renewal to continue provider tax breaks.

Pub. Ch. 449
#sales #taxes
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WeVote Research Nonpartisan
Bill Summary · SB 925

Legislative bill overview

SB 925 establishes an expiration date of June 30, 2027, for Tennessee's sales tax exemption on broadband equipment and infrastructure purchases. This exemption, which allows providers to avoid sales and use taxes when buying or leasing equipment used to deliver broadband services, was previously open-ended and now has a defined sunset date.

Why is this important

The exemption directly affects broadband expansion costs in Tennessee by reducing provider expenses for network infrastructure. By creating a sunset provision, the bill forces future legislative action to decide whether to extend, modify, or eliminate the tax break—potentially impacting broadband deployment timelines and investment decisions in the state.

Potential points of contention

  • Revenue impact: The expiration could increase operating costs for broadband providers, potentially slowing rural expansion or leading to higher consumer prices unless the exemption is renewed
  • Timing uncertainty: The June 2027 deadline may create planning difficulties for providers making long-term infrastructure investments
  • Policy intent unclear: The bill doesn't specify whether the sunset is intended to pressure renewal negotiations, phase out the benefit, or simply re-evaluate its effectiveness

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

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