The digital divide, the space between those who do and do not have access to fast and reliable internet, has proven to be a chasm. Overlapping federal programs and complicated bureaucracy have made it difficult to continue the important work of bringing all Americans connectivity. One of the latest obstacles to closing the digital divide is broadband taxes, which impose arbitrary costs on internet service providers (ISPs), making broadband more expensive or even completely unavailable to those who need it most.

Some local governments are taking advantage of the state and federal investments in broadband by charging broadband providers a fee to use public utilities in order to deliver broadband. This practice is increasingly common across the nation- last month, a conference of mayors resolved to place additional fees on cable companies using city property for broadband deployment. The fee is a kind of “right of way” that must be paid before ISPs can bring much-needed fast and reliable internet to the area.

Because the fees are imposed on the local level, some ordinances will have them while others will allow broadband providers to operate as usual. As a result, areas without a fee are much more likely to receive interest and investment in broadband infrastructure. Case in point, AT&T recently paused fiber expansion in Lake Charles, Louisiana due to the arbitrary tax on broadband.

The example of Lake Charles epitomizes the short-sighted nature of a broadband tax. The data is clear that access to fast and reliable internet will provide a far stronger economic boost than extra tax dollars in municipal coffers ever could. The National Library of Medicine concluded in a 2023 study that “high levels of broadband adoption in rural communities reduce unemployment growth and positively impact income growth Increases in broadband adoption levels are associated with an increase in median household incomes.” In short, it is in everyone’s best long-term interest to make municipalities fertile ground for broadband deployment, not excess fees.

With billions of federal and state dollars dedicated to closing the digital divide, local governments should take every step necessary to ensure that this money is used efficiently and with their communities in mind. Unfortunately, a fee on broadband means that the ISPs receiving these funds will be forced to redirect valuable resources towards local taxes.

The offline residents of Lake Charles and other communities with these fees are the ones who ultimately pay the price.

Louisiana is currently ranked first in broadband initiatives. The state’s office of broadband has done well to balance the conditions of grants and the urgent need for increased connectivity in the state. Additionally, Louisiana State Representative Deshotel, chairman of the House Committee on Commerce, authored HB 700, which champions broadband progress by withholding GUMBO funding from any city or parish that implements these fees. The bill passed as a strong incentive for local governments to carry on the momentum of the state’s leadership by making sure that ISPs and investors are not met with a collection of fees and red tape.

With developments in broadband technology, millions of dedicated dollars, and an increased understanding of how vital reliable internet is in the digital age, there has never been a better time to reject arbitrary fees and close the digital divide once and for all.