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View Full Version : FCC Weighing Model Legislation for State Internet Tax




Swordsmyth
12-18-2018, 04:09 PM
The Federal Communications Commission is weighing model state legislation to tax broadband service providers.
Documents obtained by the Washington Free Beacon indicate that the FCC's Broadband Deployment Advisory Committee (https://www.fcc.gov/broadband-deployment-advisory-committee) has advanced model state legislation for the establishment of Rural Broadband Deployment Assistance Funds (https://www.fcc.gov/sites/default/files/bdac-12-0607-2018-model-code-states-final-approved-sections.pdf).
As written, the legislation aims to increase "private sector investments" in "low population density or high cost" areas by mandating that "broadband dependent services" contribute an "equitable and non-discriminatory amount" to these funds. The controversy revolves around whether or not this constitutes a new tax on companies and services relying on the internet.
There is also contention over the definition of "broadband dependent service." As initially proposed, it would cover any "subscription-based retail service for which consumers pay a one time or recurring fee" that requires broadband internet. It would include "entities that financially benefit from" state broadband systems such as "advertising providers."
The broad definition drew rebuke from several members of the advisory committee for fear that it could apply to not only large companies like Google, Facebook, and Amazon, but also small businesses and nonprofit organizations.

More at: https://freebeacon.com/issues/fcc-weighing-model-legislation-for-state-internet-tax/