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90th General Assembly · Funnel one-pager · Monday, November 9, 2026

HF 2635: Relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis

Died when the session ended · The 2024 session adjourned on April 19, 2024, the General Assembly’s last regular session. Bills that didn’t pass both chambers died.

What it does

This bill relates to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities in the furnishing of telecommunications services on a commercial basis. The bill expands the sales tax exemption for the purchase of central office equipment or transmission equipment by striking the term “primarily” and making all such purchases used in the furnishing of telecommunications services exempt from sales tax. Code section 423.3(47A) defines the terms “central office equipment” and “transmission equipment”. By operation of Code section 423.6, an item exempt from the imposition of the sales tax is also exempt from the use tax imposed in Code section 423.5.

Sponsors

Ways and Means committee

Cost

See the fiscal note

House File 2635 is estimated to reduce annual revenues to the General Fund, the SAVE Fund, and the LOST by the amounts in Figure 1.

Senate subcommittee · named April 2, 2024

  • Sen. Waylon Brown (R)
  • Sen. Mike Bousselot (R) · mike.bousselot@legis.iowa.gov
  • Sen. Herman C. Quirmbach (D) · herman.quirmbach@legis.iowa.gov

Lobbying · 13 for, 0 against

For: AT & T; CTIA - The Wireless Association; Iowa Association of Business and Industry (ABI); Iowa Association of Electric Cooperatives; Iowa Cable and Telecommunications Association; Iowa Communications Alliance; Iowa Taxpayers Association; Lumen; Mediacom Communications Corporation; T-Mobile; U.S. Cellular; Verizon Corporation and Affiliated Companies; and 1 more

In plain words

  1. February 8, 2024Filed in the House and sent to the Ways and Means committee · as HSB 681
  2. February 8, 2024House subcommittee named: Deyoe, Gjerde and Kniff McCulla · as HSB 681
  3. February 22, 2024Subcommittee recommended passing it · as HSB 681
  4. February 28, 2024Filed in the House
  5. February 28, 2024Approved by the House committee · as HSB 681
  6. February 28, 2024Approved by the House committee, and given a new number: HF 2635 · as HSB 681
  7. March 1, 2024Cost estimate (fiscal note) posted
  8. March 25, 2024Passed the House, 93–0
  9. March 26, 2024Arrived in the Senate
  10. April 2, 2024Senate subcommittee named: Brown, Bousselot and Quirmbach

From public records at legis.iowa.gov, compiled by Funnel (iowafunnel.com), an independent, nonpartisan site. Current as of Monday, November 9, 2026. https://iowafunnel.com/bills/90/HF2635