All Roll Calls
Yes: 338 • No: 78
TexasSB 140589th Legislature Regular SessionSenateWALLET
Relating to increasing access to and reducing taxation of Internet services.
Sponsored By: Trent Ashby, Robert Nichols (Republican)
Signed by Governor
State Finances--Management & ControlTaxation--GeneralTaxation--SalesUtilities--TelecommunicationsBROADBAND NETWORKSINTERNETBROADBAND DEVELOPMENT OFFICECOMPTROLLER OF PUBLIC ACCOUNTS
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 4 benefits, 1 costs, 1 mixed.
Texas removes sales tax on internet
Since July 1, 2025, Texas no longer lists internet access as a service subject to state sales tax. The law also excludes internet access from taxable data processing and information services. Savings depend on the charges and tax treatment that previously applied.
Higher speed standards guide Texas broadband help
Since July 1, 2025, Texas uses minimum broadband speeds of 100 Mbps download and 20 Mbps upload, replacing 25/3 Mbps. Round-trip delay must be no more than 100 milliseconds at the 95th percentile. The broadband office uses the best available data to label locations unserved, underserved, or served. Public schools and community anchor institutions without reliable gigabit-level service count as unserved. Federal Communications Commission maps are allowed only if they support all three labels; these rules do not guarantee household upgrades.
Texas expands broadband project funding options
Since July 1, 2025, Texas can offer contracts, grants, low-interest loans, and other financial help for broadband projects. This includes infrastructure, middle-mile networks, and access, affordability, or adoption projects that do not build infrastructure. Infrastructure projects may qualify when at least 80% of their locations are unserved or underserved. The office must prioritize designated areas with the highest unserved or underserved shares, plus projects serving schools and colleges. It must consider federal deployment grants and applicants' loss of federal funding after defaulting on qualifying projects. The law sets no award amount or guaranteed household benefit.
More broadband awards qualify for tax relief
The law expands which broadband awards qualify for Texas franchise-tax treatment under the broadband grant rules. Covered awards include comptroller grants under Government Code Chapter 403, Subchapter S, and Chapter 490I. Chapter 403 pole-replacement reimbursements also count as broadband grants. This applies only to reports originally due on or after January 1, 2026; no specific tax savings are stated.
New limits on last-mile broadband awards
Since July 1, 2025, Texas limits awards for last-mile connections that bring broadband to individual locations. The office cannot fund a noncommercial provider at a location where an eligible commercial provider has applied to serve it. It generally cannot fund locations covered by federal commitments to provide qualifying service. That bar covers commitments existing when the application is filed or arising during review, subject to Government Code Section 490I.01061. These limits govern state awards, not households' ability to seek service.
Broadband awards face safeguards and spending limits
Since July 1, 2025, infrastructure awards are limited to capital costs, property purchases or leases, and other broadband-supporting expenses. Recipients of projects funded under Government Code Section 490I.0106(a-1) must reasonably try to restore affected private property to its pre-project condition. The office may reduce or revoke awards for material misrepresentations about compliance with award requirements. A person professionally affiliated with an advisory board member cannot receive funding when that member participates in award decisions.
Sponsors & Cosponsors
Sponsors
Trent Ashby
House
Robert Nichols
Republican • Senate
Cosponsors
Brent Hagenbuch
Republican • Senate
Roll Call Votes
House vote • 6/1/2025
Record vote
Yes: 0 • No: 0
Senate vote • 5/31/2025
Record vote
Yes: 27 • No: 4
Senate vote • 5/31/2025
Record vote
Yes: 0 • No: 0
House vote • 5/22/2025
Record vote
Yes: 111 • No: 31
House vote • 5/21/2025
Record vote
Yes: 94 • No: 31
Senate vote • 4/15/2025
Record vote
Yes: 27 • No: 4
Senate vote • 4/15/2025
Record vote
Yes: 27 • No: 4
Senate vote • 4/15/2025
Record vote
Yes: 0 • No: 0
Senate vote • 4/15/2025
Record vote
Yes: 27 • No: 4
House vote • Unknown
Committee vote: State Affairs
Yes: 14 • No: 0
Senate vote • Unknown
Committee vote: Business & Commerce
Yes: 11 • No: 0
Actions Timeline
Effective on . . . . . . . . . . . . . . . (July 1, 2025)
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
6/3/2025HouseSigned in the House
6/2/2025HouseSigned in the Senate
6/2/2025SenateReported enrolled
6/2/2025SenateHouse adopts conf. comm. report-reported
6/1/2025SenateRecord vote (RV#4134)
6/1/2025HouseHouse adopts conference committee report
6/1/2025HouseSenate adopts conf. comm. report-reported
5/31/2025HouseRecord vote
5/31/2025SenateSenate adopts conference committee report
5/31/2025SenateRecord vote
5/31/2025SenateRules suspended
5/31/2025SenateConf. Comm. Report distributed
5/30/2025HouseConference committee report filed
5/30/2025SenateHouse appoints conferees-reported
5/27/2025SenateHouse grants request for conf comm-reported
5/27/2025SenateHouse appoints conferees
5/27/2025HouseHouse grants request for conference committee
5/27/2025HouseSenate appoints conferees-reported
5/25/2025HouseSenate requests conference committee-reported
5/25/2025HouseSenate refuses to concur-reported
5/25/2025HouseSenate appoints conferees
5/25/2025SenateSenate requests conference committee
5/25/2025Senate
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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