S 181 Vermont Senate · 2023-2024 Regular Session

An act relating to establishing a television assessment and community media

This bill creates a new 5% assessment fee for video streaming service providers in Vermont that earn more than $250,000 annually from streaming services. The fee is calculated based on the provider's gross receipts from customers located in the state and must be reported to the state tax commissioner by April 15 each year. The legislation defines covered services as video programming displayed for a fee on a subscription basis, while excluding cable television and certain revenue types like refunds, telecommunications services, and bundled charges. Collected funds are intended to support public benefits and services, particularly those in the communications sector, though the specific allocation details are not outlined in this text.

Sub-Topics: Telecommunications

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2024

Committee Review

Mar 2024

Senate Passage

Mar 2024

House Passage

Governor

Introduced Jan 3, 2024 Last action Apr 3, 2024

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What changed between versions

As Passed By the Senate (Unofficial) → As Passed By the Senate (Official) · 8 edits · Mar 29, 2024

MODERATE

The official Senate version of S.181 adds an entirely new chapter (30 V.S.A. chapter 88A) establishing a Community Media Public Benefit Fund financed by a $15-per-year pole attachment charge on communications service providers. This new mechanism sits alongside the original bill's 5% tax on video streaming providers, significantly broadening the bill from a single streaming assessment to a dual-revenue system for supporting Vermont's access management organizations (AMOs). The addition reflects a legislative response to declining cable-based AMO funding as consumers shift to streaming.

SCOPE

A new 30 V.S.A. chapter 88A (Community Media Public Benefit Fund) is added, creating a second revenue mechanism for AMO support independent of the existing streaming tax in Chapter 247.

FISCAL

A $15-per-year pole attachment charge is imposed on each communications service provider for every pole attachment it owns or controls in Vermont, assessed annually as of April 1.

The Fund is created as a special fund within the State Treasury; unexpended balances carry forward year to year. Administrative costs are capped at 5% of total annual appropriations from the Fund.

DEFINITION

New definitions are added for access management organization (AMO), communications facility, communications service provider (covering ILECs, CLECs, wireless providers, cable companies, and ISPs), pole attachment, pole-owning utility, utility pole, and Vermont Access Network.

REQUIREMENT

Cable companies may deduct from their pole attachment charge any amounts already paid to AMOs under Public Utility Commission Rule 8.000 in the prior calendar year, preventing double-charging but not reducing existing legal obligations.

ELIGIBILITY

An AMO that is not in substantial compliance with PUC Rule 8.000 annual reporting requirements is ineligible to receive grant funds from the Fund.

ENFORCEMENT

Pole-owning utilities must report pole counts and attachment inventories within 60 days of a request from the Commissioner of Taxes, classified by the communications service provider owning each attachment.

TIMELINE

The effective date provision is simplified to 'This act shall take effect on passage' for the new chapter, while the original Chapter 247 retains its retroactive January 1, 2024 effective date. Pole attachment payments begin July 1, 2024.

As Introduced → As Passed By the Senate (Unofficial) · 8 edits · Mar 29, 2024

MODERATE

The bill was fundamentally restructured from a $15-per-pole-attachment charge on all communications service providers into a 5% gross receipts assessment specifically targeting video streaming service providers (those earning over $250,000 annually). The funding mechanism shifted from a dedicated special fund to the General Fund with annual appropriations, and the effective date was made retroactive to January 1, 2024.

SCOPE

The bill's target changed from all communications service providers (including wireless carriers, ISPs, cable companies) to specifically video streaming service providers earning more than $250,000 in gross annual revenues. The statutory home moved from 30 V.S.A. chapter 88A to 32 V.S.A. chapter 247.

FISCAL

The $15.00 per pole attachment charge was eliminated entirely, along with all related definitions (pole attachment, utility pole, pole-owning utility, communications facility, communications service provider) and the cable company deduction provision.

A 5% assessment on gross receipts of video streaming service providers was added. Gross receipts are defined with specific exclusions for bad debts, affiliate transactions, refunds, telecommunications revenue, broadband revenue, capital asset sales, programmer reimbursements, late fees, and separately identifiable bundled charges.

Revenue now goes to the General Fund rather than a dedicated special fund. The General Assembly must annually appropriate a portion to the Secretary of State for the grant program, making funding subject to annual legislative action rather than automatic.

DEFINITION

New definitions were added for 'customer,' 'gross receipts,' 'service provider,' 'video programming,' 'video streaming service' (excluding cable service as defined in 47 U.S.C. 522(6)), and 'video streaming service provider.'

TIMELINE

The bill takes effect retroactively on January 1, 2024, applying to taxable years on and after that date. A $1,100,000 appropriation is made to the Department of Taxes in fiscal year 2025 for implementation.

ENFORCEMENT

New filing requirements were added: providers must file returns by April 15 each year with the Commissioner of Taxes. The Commissioner has a 3-year audit period (unlimited for fraudulent returns) and authority to require record-keeping for 3 years.

REQUIREMENT

The requirement that AMOs be in substantial compliance with PUC Rule 8.000 reporting requirements to receive grants was removed, as was the requirement for Vermont Access Network to submit an annual plan to the Secretary of State before distribution.

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Committee

Amendments

Apr 3, 2024

Introduced

Read first time and referred to the Committee on Environment and Energy

lower

Mar 29, 2024

Introduced

Title amended

upper

Mar 28, 2024

Upper · Passed

Recommendation of amendment by Committee on Finance agreed to

upper

Mar 28, 2024

Upper · Passed

Reported favorably by Senator Starr for Committee on Appropriations

upper

Mar 28, 2024

Upper · Passed

Read 2nd time, reported favorably with recommendation of amendment by Senator Chittenden for Committee on Finance

upper

Mar 28, 2024

Upper · Passed

Favorable report by Committee on Appropriations

upper

Mar 28, 2024

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Mar 27, 2024

Upper · Passed

Favorable report by Committee on Appropriations

upper

Mar 27, 2024

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Mar 26, 2024

Upper · Passed

Favorable report by Committee on Appropriations

upper

Mar 26, 2024

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Mar 22, 2024

Upper · Passed

Favorable report by Committee on Appropriations

upper

Mar 22, 2024

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Mar 19, 2024

Committee

Referred to Committee on Appropriations per Senate Rule 31

upper

Mar 19, 2024

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Jan 3, 2024

Introduced

Read 1st time & referred to Committee on Finance

upper

1 primary · 0 co-sponsors