H.F. 2050 Section 1. Section 427.1, Code Supplement 2011, is amended 1 by adding the following new subsection: 2 NEW SUBSECTION . 25. Broadband service property. 3 a. The value of all cable, lines, wire, conduits, switches, 4 and other similar equipment or fixtures owned by or leased to 5 a telephone or telegraph company, cable television company, 6 commercial mobile radio service company, or other entity if 7 such property is used primarily for providing broadband service 8 and was installed on or after January 1, 2013. 9 b. For purposes of this subsection, “broadband service” 10 means providing two-way data transmission with advertised 11 speeds that exceed seven hundred sixty-eight kilobits per 12 second downstream and at least two hundred kilobits per second 13 upstream to end users. 14 Sec. 2. IMPLEMENTATION OF ACT. Section 25B.7 shall not 15 apply to this Act. 16 Sec. 3. APPLICABILITY. This Act applies to assessment years 17 beginning on or after January 1, 2013. 18 EXPLANATION 19 This bill establishes a property tax exemption for the 20 value of all cable, lines, wire, conduits, switches, and other 21 similar equipment or fixtures owned by telephone or telegraph 22 companies, cable television companies, commercial mobile radio 23 service companies, or other entities if such property is used 24 primarily for providing broadband service and is installed on 25 or after January 1, 2013. The bill defines “broadband service” 26 as providing two-way data transmission with advertised speeds 27 that exceed 768 kilobits per second downstream and at least 200 28 kilobits per second upstream to end users. 29 The bill provides that the provisions in Code section 25B.7, 30 relating to the obligation of the state to reimburse local 31 jurisdictions for property tax credits and exemptions, do not 32 apply to the exemption in the bill. 33 The bill applies to assessment years beginning on or after 34 January 1, 2013. 35 -1- LSB 5189YH (3) 84 md/sc 1/ 1