HSB 235: 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.

House subcommittee · named February 20, 2025

• Rep. Joshua Meggers (R) · joshua.meggers@legis.iowa.gov
• Rep. Megan Jones (R) · megan.jones@legis.iowa.gov
• Rep. Scheetz

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
2. February 20, 2025House subcommittee named: Meggers, Jones and Scheetz
3. February 26, 2025Subcommittee recommended passing it
4. March 13, 2025Approved by the House committee
5. March 13, 2025Committee vote: 23–0
6. March 13, 2025Approved by the House committee, and given a new number: HF 960