Approximately 30 percent of West Virginia residents do not have access to high-speed internet, ranking 47th in the country for broadband access, according to the FCC’s “Broadband Access Report.” House Bill 2379, called the Wireless Technology Business Property Valuation Act, was proposed by Delegate Gary Howell and would change the tax rate for telecommunications equipment to incentivize companies to build towers in rural areas, according to a report from The Exponent Telegram. Instead of charging companies the tax rate based on the value of the actual equipment, the bill would charge taxes based on the much lower salvage rate for the materials. HB 2379 builds on the progress made with HB 3093, signed into law in April 2017, by Governor Jim Justice, which expanded broadband access and encouraged competition between providers.
Delegate Howell wants to reframe the discussion of broadband expansion around wireless towers. He told The Exponent Telegram, “What a lot of people think of when they think broadband is fiber optics and landlines. But you can do this over the air, and it’s much faster.” By focusing on wireless tower technology and lowering the taxes required of companies who would construct those towers, Howell hopes to expand broadband access across the state.
Some of the most rural areas in West Virginia, however, feel left out of the proposed legislation. Michael J. Holstine, P.E., business manager at the Green Bank Observatory in rural Pocahontas County, called the bill “a step in the right direction,” but he believes that the bill does not do enough to expand service in the most rural areas in the state. He illustrated the disparity between urban and rural access in a conversation with The Exponent Telegram. “On average, better than 80 to 95 percent of urban users have access to broadband service compared to only about 40 to 60 percent of rural users. In some areas of the state, again using Pocahontas County as an example, the rural access is as low as four to 10 percent,” Holstine explained.
To move forward, HB 2379 must first be debated by the House Finance Committee. If it is successful, it will move to the House floor for a vote before being considered by the Senate.
January 30, 2018
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