HF 960: 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

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.

Senate subcommittee · named January 25, 2026

• Sen. Kerry Gruenhagen (R) · kerry.gruenhagen@legis.iowa.gov
• Sen. Tony Bisignano (D) · tony.bisignano@legis.iowa.gov
• Sen. Dan Dawson (R) · dan.dawson@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 Municipal Utilities; Iowa Cable and Telecommunications Association; Iowa Communications Alliance; Iowa Taxpayers Association; Lumen; T-Mobile USA, Inc.; U.S. Cellular; Verizon Corporation and Affiliated Companies; Windstream Communications Corporation; and 1 more

In plain words

1. February 20, 2025Filed in the House and sent to the Ways and Means committee · as HSB 235
2. February 20, 2025House subcommittee named: Meggers, Jones and Scheetz · as HSB 235
3. February 26, 2025Subcommittee recommended passing it · as HSB 235
4. March 13, 2025Filed in the House
5. March 13, 2025Approved by the House committee · as HSB 235
6. March 13, 2025Committee vote: 23–0 · as HSB 235
7. March 13, 2025Approved by the House committee, and given a new number: HF 960 · as HSB 235
8. March 24, 2025Cost estimate (fiscal note) posted
9. April 21, 2025Passed the House, 87–4
10. April 22, 2025Arrived in the Senate
11. June 16, 2025Sent to the Senate Ways and Means committee
12. January 25, 2026Senate subcommittee named: Gruenhagen, Bisignano and Dawson
13. March 11, 2026Subcommittee recommended passing it
14. April 15, 2026Approved by the Senate committee
15. April 15, 2026Cost estimate (fiscal note) posted
16. April 20, 2026Passed the Senate, 33–11
17. April 20, 2026Cost estimate (fiscal note) posted
18. April 22, 2026Passed the House, 86–3
19. May 11, 2026Sent to the Governor
20. May 13, 2026Cost estimate (fiscal note) posted
21. May 19, 2026Signed into law