Lake Pulls Repeal of Idaho Broadband Credit

By Sharon Fisher, 3-27-08

Facing what appeared to be defeat, Chair of the Revenue and Taxation Committee Representative Dennis Lake, R-Blackfoot, pulled a bill that would have removed a tax exemption for providing broadband Internet, after a long bipartisan debate against the bill.

Lake had presented the bill, one of three, in response to complaints that his committee had not followed the recommendation of an interim committee that the Legislature examine the broad sheaf of tax exemptions provided to Idaho businesses – particularly in this year of declining tax revenues.

A number of representatives – particularly those representing the rural Idaho areas that are currently underserved – urged a “no” vote on the bill until such time as all Idahoans had access to high-speed Internet. Several cited H543, a bill that takes the first step toward creating a statewide broadband network that is initially intended for education but will also support government and industry.

Even representatives who debated in favor of the bill had harsh words about the current lack of broadband connectivity in the state. “Verizon is not providing broadband even with the incentive,” said Representative George Eskridge, R-Dover, calling the current exemption “a subsidy for urban areas at the expense of rural areas.”

Representative Nicole LeFavour, D-Boise, a member of the committee, criticized the process by which the three exemptions were selected for removal, calling it “random.” The other two exemptions were H664, for repealing a tax credit for science and technology, and H663, to repeal a sales tax exemption on TV broadcast equipment—neither of which have yet been voted on. In addition, Lake proposed repealing the unused corporate headquarters incentive bill – the so-called “Albertson’s bill” that had been intended to encourage the retailer to keep its headquarters in Boise— and that bill has passed both houses.

Other representatives debating against the bill were Liz Chavez, D-Lewiston; Branden Durst, D-Boise, who is also a House representative to Idaho’s Information Technology Resource Management Council; Ken Roberts, R-Donnelly; Ken Andrus, R-Lava Hot Springs; Shirley; and Bob Nonini, R-Coeur d’Alene, who chairs the education committee and sponsored the Idaho Education network bill.

Lake then called for unanimous consent that the bill be returned to the Rev and Tax committee, which was granted.

Sharon Fisher is a candidate for the Idaho Legislature, District 21.