In the world of movie sequels, often the second installment is worse than the original and House Bill 1517 (HB 1517) fits that ‘bill’ perfectly. In 2023, Representative Mia Gregerson (D) introduced House Bill 1793 (HB 1793) which would have added a $2 tax to every internet connect device sold that cost $250 or more. Now HB 1793 is back as House Bill 1517, also introduced by Representative Gregerson.

HB 1793 would require the $2 tax to be declared separately from other sales taxes on the declaration to the state of the retail sale. The money is paid into the state digital equity account whose primary function is to fund various training and internet connectivity programs. Failure to collect the tax by a retailer is considered a gross misdemeanor.

Consumer Reports estimates that there is an average of 21 internet connected devices per US household. The latest data has Washington has 3.4 million homes, so simple math would indicate that the tax would add $142 million in new taxes as the devices are replaced. That doesn’t include new devices or commercial internet connected devices (every PC, server and laptop at a business) which will balloon this number into the billions.

It creates another unfunded mandate on businesses to collect, report and pay the tax to state government.

96.7% of Washington State residents have access to wired or wireless broadband service (as defined by the FCC) with nearly 50% of residents having access to fiber-optic internet services. The majority of residents that have limited access to broadband internet live in rural areas of the state. Monies spent from the digital equity account will do little to help these rural areas and duplicates efforts by the federal government rural broadband expansion planning.

In fact, the majority of the taxes that would be collected under HB 1517 would go to residents that already have access to cheap broadband under a $65 billion Federal Communications Commission (FCC) program.

House Bill 1517 is unnecessary and duplicative of the existing federal programs in place to help families get access to cheap, reliable broadband. It will drive up costs of electronic devices for consumers and businesses in Washington, through a regressive, unnecessary tax.