Bill > SF883

This bill creates a new sales and use tax exemption for fiber and conduit (physical infrastructure used to support telecommunications networks) purchased or leased by broadband and Internet service providers. Specifically, the exemption applies to fiber and conduit that will be used directly by these providers in delivering broadband or Internet access services to retail customers. The tax exemption is not absolute, as it notes there might be an existing exemption under a previous subdivision (35a), but provides additional tax relief for these telecommunications infrastructure components. The bill will take effect for sales and purchases made after July 1, 2025, which means businesses can begin benefiting from this tax exemption starting in the fiscal year 2026. The purpose of the bill appears to be to reduce the cost of expanding broadband and Internet infrastructure by eliminating sales tax on key network building materials, potentially encouraging more investment in telecommunications services, particularly in areas with limited connectivity.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0883&ssn=0&y=2025