Signed by Governor Kevin Stitt

Vote Smart's Synopsis:

Vote to pass a bill that requires the Rural Broadband Expansion Council to develop guidelines for broadband incentive awards by a certain date.

Highlights:

• Exempts the following from the tax levied by the Oklahoma Sales Tax Code (Sec. 1):

• Sales for resale to persons engaged in the business of reselling the articles purchased, whether within or without the state, provided that such sales to residents of this state are made to persons to whom sales tax permits have been issued;

• Sales of tangible personal property or services to children's homes which are located on the church-owned property and are operated by organizations exempt from taxation;

• Sales of diesel fuel sold for consumption by commercial vessels, barges, and other commercial watercraft;

• Sales of tangible personal property or services to persons who are residents of Oklahoma and have been honorably discharged from active service in any branch of the Armed Forces of the United States or Oklahoma National Guard and who have been certified by the United States Department of Veterans Affairs or its successor; and

• The sale, lease, rental, storage, use, or other consumption of qualifying broadband equipment by providers of Internet service or subsidiaries if the property is directly used or consumed by the provider or subsidiary in or during the distribution of broadband Internet service.

• Amends laws related to the provision of broadband grant awards in the following ways (Sec. 2):

• No claim for a rebate shall be approved unless the equipment was purchased to create or expand broadband services in underserved or unserved areas;

• No claim for rebate shall be approved unless the claimant establishes that as a result of the equipment purchase there has been net growth in the number of potential customers served in underserved or unserved areas;

• For the fiscal year beginning July 1, 2022, the total amount of rebates that may be paid will not exceed $20,000,000.00 with $15,000,000.00 of the total reserved for eligible projects serving counties having a population density of fewer than 100 persons per square mile and $5,000,000.00 of the total reserved for eligible projects serving counties having a population density of 100 or more persons per square mile.

• Qualifying purchases do not include supporting or ancillary functions, such as office operations, field operations, marketing, transportation, warehousing, data storage, or similar operations that do not directly result in the distribution of broadband Internet service; and

• Claims for a rebate will be on such forms as the Oklahoma Tax Commission may prescribe for such purpose and will contain any required information or supporting documentation the Commission requires to verify eligibility for the rebate payment.

Full Bill Text