SSB 1209: 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 March 7, 2025

• Sen. Mike Bousselot (R) · mike.bousselot@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. March 6, 2025Filed in the Senate and sent to the Ways and Means committee
2. March 7, 2025Senate subcommittee named: Bousselot, Bisignano and Dawson
3. March 25, 2025Subcommittee recommended passing it
4. April 21, 2025Approved by the Senate committee, and given a new number: SF 636