Bill > HF960

This bill modifies the existing sales tax exemption for telecommunications equipment by removing the word "primarily" from the current law, which means that all central office equipment or transmission equipment used by local exchange carriers, competitive local exchange service providers, cable TV operators, mutual companies, municipal utilities, cooperatives, communication service providers, long-distance companies, and commercial mobile radio services will now be completely exempt from sales tax when used in furnishing telecommunications services on a commercial basis. By eliminating the word "primarily," the bill broadens the tax exemption, making it more comprehensive and less restrictive than the previous version. The bill amends Code section 423.3(47A), which defines "central office equipment" and "transmission equipment," and by extension of Code section 423.6, this sales tax exemption will also apply to use taxes. This change will likely provide financial relief for telecommunications service providers by reducing their equipment purchasing costs across all their equipment, rather than just equipment used predominantly for telecommunications services.

Budget and Finance

Ways and Means (H)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF960