- Associated Press - Friday, December 18, 2015

DES MOINES, Iowa (AP) - Representatives for companies trying to expand broadband in Iowa say the state needs to update its rules for taxing them.

Industry officials told a legislative committee Friday that property taxes are a significant expense for some telecommunications companies in Iowa, and it can affect investments on high-speed Internet.

There are several types of companies that offer telecommunications services in Iowa, and state code taxes them differently. Officials say that’s left some at a financial disadvantage.

An Iowa Department of Revenue spokeswoman says a 2013 state law lessened some property taxes and saved nearly $20 million for telecommunication companies. She says the department is open to exploring options with the Legislature.

A 2015 law includes a 10-year property tax exemption on new broadband projects, but those exemption rules are still pending.

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