Missouri House approves seven-year broadband tax incentive to spur buildout

The Missouri House approved House Committee Substitute for House Bill 2711 on April 8, a proposal intended to encourage broadband expansion by reducing the assessment rate on qualifying equipment for seven years.

The bill sponsor, the representative from Bates County, said the tax change is designed to complete broadband buildout across urban, suburban and rural Missouri by reducing assessment rates to encourage providers to expand coverage. “This bill is forward-looking in a seven-year time frame,” the sponsor said.

Opponents raised concerns that the bill’s language does not require the tax break to go to new customers or to areas lacking service; one representative from Saint Louis City said upgrades in already-served areas could qualify under the measure and yield sizable tax benefits without a commensurate expansion in coverage.

The fiscal review chairman and others urged broadband providers to improve customer service even as lawmakers consider incentives. The chamber adopted the bill on a recorded vote (yeas 91, nays 46).

Next steps: the bill proceeds to the Senate; budget analysts and committee staff will likely monitor whether the measure achieves targeted rural expansion or primarily benefits incumbent providers upgrading existing networks.