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

HSB 681: HSB 681

Became HF 2635 · Its progress continues under the new number.

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.

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.

House subcommittee · named February 8, 2024

Rep. Dave Deyoe (R)
Rep. Eric J. Gjerde (D) · eric.gjerde@legis.iowa.gov
Rep. Barb Kniff McCulla (R) · barb.kniffmcculla@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

February 8, 2024Filed in the House and sent to the Ways and Means committee
February 8, 2024House subcommittee named: Deyoe, Gjerde and Kniff McCulla
February 22, 2024Subcommittee recommended passing it
February 28, 2024Approved by the House committee
February 28, 2024Approved by the House committee, and given a new number: HF 2635