The Governor of Virginia, Glenn Youngkin, has signed H.B. 1155, which expands the sales and use tax exemption on equipment that is used to provide internet services. In addition to amplification, transmission and distribution equipment, network equipment will also be exempt from tax starting July 1, 2022 when the amended exemption goes into effect. As defined in H.B. 1155, “A “network” includes modems, fiber optic cables, coaxial cables, radio equipment, routing equipment, switching equipment, a cable modem termination system, associated software, transmitters, power equipment, storage devices, servers, multiplexers, and antennas, which network is used to provide Internet service, regardless of whether the provider of such service is also a telephone common carrier or whether such network is also used to provide services other than Internet services.” This exemption will allow telecommunication companies and telephone common carrier to exempt these items from tax, even if the equipment is used to provide multiple services. (Virginia Department of Revenue, H.B. 1155, effective July 1, 2022)