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HB 1469

TO CREATE THE BROADBAND EXPANSION AND EFFICIENCY ACT; AND TO CREATE A SALES AND USE TAX EXEMPTION FOR MACHINERY AND EQUIPMENT USED IN PRODUCING BROADBAND COMMUNICATIONS SERVICES.

2025 Regular Session Introduced by Howard Beaty and 1 co-sponsor

HB 1469 offers tax exemptions for equipment used in broadband services, aiming to boost internet access in Arkansas, benefiting providers and residents alike.

Died in House Committee at Sine Die adjournment.
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WeVote Research Nonpartisan
Bill Summary · HB 1469

Summary of HB 1469: Broadband Expansion and Efficiency Act

Purpose and Intent

House Bill 1469, titled the Broadband Expansion and Efficiency Act, aims to promote the expansion of broadband communications services in Arkansas by providing a sales and use tax exemption for machinery and equipment used in the production of these services. The bill seeks to enhance the state's telecommunications infrastructure, thereby improving access to high-speed internet for residents and businesses.

Key Provisions

  • Sales and Use Tax Exemption: The bill proposes a tax exemption for the sale of machinery and equipment specifically used in producing broadband communications services. This includes:

    • Broadband Communications Services: Defined as telecommunications services, video programming services, internet access services, or any combination thereof.
    • Machinery and Equipment: Includes a wide range of items such as:
    • Wires, cables, fiber, conduits, antennas, and poles
    • Switches, routers, amplifiers, and transmitters
    • Diagnostic equipment, storage devices, and software
    • Excludes personal consumer electronics (e.g., smartphones, computers) and consumer-grade modems and Wi-Fi routers.

  • Effective Date: The provisions of the act would take effect on the first day of the calendar quarter following its enactment, estimated to be October 1, 2025.

Fiscal Impact

  • Estimated Revenue Loss: The bill is projected to result in significant revenue losses due to the tax exemption:
    • FY2026: Approximately $14.9 million in state sales and use tax loss.
    • FY2027: Estimated losses could rise to $23 million.
  • The revenue loss would affect various state funds, including general revenue, property tax relief, and educational funds.

Affected Parties

  • Broadband Providers: The primary beneficiaries of this bill would be companies involved in the production and provision of broadband communications services, as they would no longer incur sales tax on essential equipment.
  • Consumers and Businesses: Indirectly, residents and businesses in Arkansas could benefit from improved broadband access and potentially lower costs as providers invest in infrastructure.

Procedural Aspects

  • The bill was introduced on February 13, 2025, and was referred to the House Committee on Revenue & Taxation. However, it died in committee on May 5, 2025, at the Sine Die adjournment, meaning it did not advance for further consideration.

Conclusion

HB 1469 aimed to facilitate the growth of broadband services in Arkansas through tax incentives for providers. While the intent was to enhance connectivity and infrastructure, the bill ultimately did not progress through the legislative process.

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

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