The House and Senate have passed HB 969 / SB 774 with MACo’s amendments, preserving local decision-making over broadband tax incentives. As introduced, MACo supported HB 969 / SB 774 with amendments to ensure counties retained authority over local fiscal policy.
The bill would have granted rural broadband service providers a permanent property tax carveout, giving them a lasting advantage over other industries while shifting significant costs onto counties.
This approach ignored the reality that broadband providers, once established, operate as profitable enterprises with stable revenues and expanding customer bases.
Rather than a permanent, state-mandated tax carveout, the bill now allows counties to negotiate Payment in Lieu of Taxes (PILOT) agreements with broadband providers. These agreements enable counties to support broadband expansion while maintaining fiscal responsibility.
With MACo’s amendments in place, both HB 969 and SB 774 have advanced in their respective chambers with identical language. However, each bill must still pass in the opposite chamber before final approval. This next step ensures both chambers align on the legislation before it moves to the governor for consideration.
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