House advances overhaul of communications taxes and right-of-way fees; per-line universal service fee proposed

The House debated H.657, a multi-part telecommunications modernization bill that seeks to stabilize revenue for the Vermont Universal Service Fund, repeal a 1947 telephone personal property tax, set communications property on local grand lists, and require assessment of a right-of-way fee on broadband and wireless providers using state-owned rights of way.

Ways and Means explained a primary change: replace a proportional 2.4% charge on retail voice services with a flat per-line contribution of $0.72 to stabilize an eroding revenue base for beneficiaries such as enhanced 911. The committee also proposed exempting Lifeline and Relay programs from the charge and keeping a percentage charge for prepaid wireless.

On taxes, the bill would repeal the telephone personal property tax and require communications property (wires, cables, poles, towers, network equipment) to be valued on the grand list as real estate, bringing modern communications property into the local property tax base. The House discussed transitional provisions, a PVR valuation model appropriation and related technical details.

For the state right-of-way fee — a statutory authorization in place since 2007 that had not been implemented — the House debated a per-linear-foot fee adjusted by county population. Environment & Energy had struck those sections to refine them, and later the floor adopted a consolidated amendment offered by members including the member from Burlington. That amendment requires communications providers to supply inventory/mileage data to the Agency of Transportation (VTrans), narrows exemptions (e.g., communication union districts, certain builds under universal service plans), and creates confidentiality protections for submitted data (limited distribution, exemption from public inspection under the Public Records Act) to address security concerns. The amendment also delayed fee start dates to align with the fiscal year.

Members pressed the sponsor for details about who pays and what infrastructure is assessed — whether legacy copper or inactive cables are included, whether pole attachments are in scope, and which providers qualify for waivers tied to universal-service plan builds. The committee clarified the fee applies to broadband/wireless infrastructure on state right-of-way (current and future miles) and that JFO could not estimate revenues until inventories are collected; some members criticized the potential of cost pass-through to consumers.

After committee motion activity and floor amendments, the House ordered the bill for third reading.