Proyectos de ley › 90.ª Asamblea General
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
Presentado por el comité Ways and Means de la Cámara
Temas:Business & economyTaxes
La misma legislación: HSB 681
Dónde está ahora
- Hecho: Presentado8 de febrero de 2024
- Hecho: Subcomité8 de febrero de 2024
- Hecho: Comité de la Cámara28 de febrero de 2024
- Hecho: Lo aprueba la Cámara25 de marzo de 202493–0
- Se detuvo: Comité del SenadoMurió al terminar la Asamblea General
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2024 terminó el 19 de abril de 2024, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA Companies that provide telecommunications services would no longer have to pay sales or use tax on certain equipment used to run their networks. This change removes a requirement that the equipment must be used primarily for these services to qualify for the tax break. It affects businesses that buy central office or transmission equipment to provide phone or data services. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
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.
Senate subcommittee
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Nota fiscal
Resumen con IA This bill expands sales and use tax exemptions for certain telecommunications equipment used to provide commercial services. It is estimated to reduce annual revenues by $0.8 million for the General Fund, $0.2 million for the SAVE Fund, and $0.2 million for the LOST starting in fiscal year 2025. These reductions are projected to continue through fiscal year 2029. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 2635 expands the sales and use tax exemption found in Iowa Code section 423.3(47A)(a) by making all purchases of central office equipment or transmission equipment used by certain entities in the furnishing of telecommunications services on a commercial basis exempt from sales and use tax.
Background
Under current law, a sales tax exemption is available only for central office equipment or transmission equipment primarily used by local exchange carriers and competitive local exchange service providers; by franchised cable television operators, mutual companies, municipal utilities, cooperatives, certain communication services companies; by long distance companies; or for a commercial mobile radio service in the furnishing of telecommunications services on a commercial basis.
“Central office equipment” is defined as equipment utilized in the initiating, processing, amplifying, switching, or monitoring of telecommunications services. Central office equipment also includes ancillary equipment and apparatus that support, regulate, control, repair, test, or enable such equipment to accomplish its function.
“Transmission equipment” is defined as equipment utilized in the process of sending information from one location to another location. Transmission equipment also includes ancillary equipment and apparatus that support, regulate, control, repair, test, or enable such equipment to accomplish its function.
Assumptions
- The Bill is effective July 1, 2024 (FY 2025).
- It is assumed that there are 116 telecommunications providers affected by the Bill.
- Estimated taxable expenditures made exempt by the Bill are based on appeals information filed with the Iowa Department of Revenue related to the sales tax exemption in Iowa Code section 423.3(47A)(a) and scaled to include all telecommunications providers in the State.
- The estimated value of purchases made exempt under the Bill is assumed to increase by 2.0% annually.
- Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable expenditures. Local Option Sales Tax (LOST) distributions are estimated to be 0.97% of taxable expenditures.
Fiscal Impact
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.
Figure 1 — Fiscal Impact of HF 2635 (in Millions)
Sources
- Iowa Department of Revenue
- Iowa Communications Alliance
- Communications Network Equipment Sales Tax Exemption · 1 de marzo de 2024
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§423.3
Cabildeo
13 a favor · 0 en contra · 5 indecisos · Quiénes →
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90th General Assembly
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Similar bills
- HF 960 Relating to the sales tax exemption for the purchase of central office equipment or transm…91st General Assembly · Signed by GovernorNearly identical
- HSB 126 Relating to the sales tax exemption for the purchase of central office equipment or transm…91st General Assembly · In committeeNearly identical
Matched by wording or an identical title.