A measure currently being considered by St. Paul state lawmakers could increase how much Minnesotans pay for internet and internet service.
If passed, the broadband tax bill would authorize local governments to impose new local taxes on consumers, increasing monthly bills for the same service by up to 8%.
“This would increase costs and add taxes to any broadband or internet service; that’s anything delivered over an internet connection, such as home security networks, on-demand video. This could be an overlay tax on multiple services,” said Opposition to the Bill explains Melissa Wolfe, executive director of the Minnesota Cable Communications Association.
Wolf said that while it is sometimes referred to as the “Broadband Equal Access Act,” the truth is exactly the opposite. She called the proposed new taxes regressive. She said the higher costs would hit families already struggling the hardest and could leave them unable to afford internet service.
“This is really baffling. This tax will hit every family in Minnesota, but it will hit the lowest-income families the hardest,” she said. “Some of them will have to choose between going online at home and buying groceries every month.”
Wolf added that the tax could widen the so-called digital divide.
This disparity was fully exposed during the COVID-19 lockdowns, when an estimated 27% of Minnesotans entered the pandemic without any home broadband connection.
Households without reliable internet connections have been disproportionately affected. The lack of a basic digital lifeline takes a toll, from children unable to log in to learn to adults unable to work from home or seek online telehealth appointments.
“We know that internet access is critical to delivering equitable outcomes,” Wolf said.
State lawmakers are debating raising local broadband taxes at a time when funding for the Affordable Connectivity Plan (ACP), a federal program, is running out.
In Minnesota, 245,000 low-income families participating in the ACP program receive monthly subsidies to cover the cost of their high-speed Internet. Congress has not authorized continuation of the program, so many people will have to make up the $30 monthly difference out of pocket.
Wolf urged consumers who oppose the new taxes to contact their state legislators or governor by phone, letter or email. They can also express their objections by visiting the nointernetaxmn.com website.