Is internet service considered a utility?  If so is there a legal
source such as GASB.

Hello montiman,

No, internet service is not considered a utility.

This subject is currently under debate amongst a group of people
seeking refunds from a certain (now apparently defunct) Florida
company, so I happen to have the information at hand:

According to the Florida Public Service Commission, neither internet
service or web hosting are considered utilities in Florida or any
other state.  Problems with internet service providers are handled by
the FTC:

http://www.ftc.gov

You can confirm with the Florida Public Service Commission: 
1-800-342-3552 or directly with Nancy Pruitt of the PSC:  850-413-6127

Hope that helps!

--Missy

very thorough