Bill > SF636

This bill modifies the existing sales tax exemption for telecommunications equipment by removing the word "primarily" from the current law, which means that sales of central office equipment or transmission equipment used by telecommunications service providers (including local exchange carriers, cable television operators, municipal utilities, cooperatives, communication service providers, long-distance companies, and commercial mobile radio services) will now be fully exempt from sales tax, regardless of the proportion of their use in furnishing telecommunications services. Previously, the exemption was limited to equipment that was "primarily" used for telecommunications services, which likely required providers to demonstrate that the majority of the equipment's use was for telecommunications. By eliminating the word "primarily," the bill broadens the tax exemption to include all such equipment used in the furnishing of telecommunications services on a commercial basis, potentially providing more financial relief to telecommunications service providers by reducing their equipment-related tax burden.

Budget and Finance

Ways & Means (S)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF636