In a letter to the Nebraska State Legislature, NATE: The Communications Infrastructure Contractors Association on Wednesday expressed “strong opposition” to a bill that would repeal the sales tax exemptions on tower leases. The letter, sent to Senator Brad von Gillern, Chairperson of the Nebraska State Legislature Revenue Committee, said Legislative Bill 650, if enacted, would have “unintended but deeply harmful economic consequences for our member companies working on the front lines of deployment.”
The author of the note, NATE President & CEO Todd Schlekeway went on to say his member companies, many of them small businesses, cannot move forward with projects until they receive authorization from their wireless and broadband clients. Imposing a sales tax on tower lease payments would increase the cost of broadband and wireless infrastructure buildouts and could discourage future investment.
“This would result in delayed projects, reduced work opportunities, and fewer jobs for Nebraskans in our industry,” Schlekeway said in the letter. “Further, many of our members work in rural parts of Nebraska where communications tower infrastructure is especially vital. These areas rely on robust and affordable connectivity solutions.”
NATE’s stated position to the bill is that eliminating the tax exemption would place an added burden on rural broadband expansion, undermining efforts to close the digital divide and provide critical communications services to rural residents, farmers, schools, and businesses.
“Preserving the sales tax exemption on wireless tower leases is a sound economic and tax policy,” Schlekeway said in urging opposition to the bill. “It supports Nebraska’s small businesses, enables broadband deployment, and promotes economic development across both urban and rural communities.”
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