Bills › 91st General Assembly
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
Sponsored by the House Ways and Means Committee
Topics:Business & economyTaxes
Where it is now
- Done: IntroducedFebruary 20, 2025
- Done: SubcommitteeFebruary 20, 2025
- Done: House committeeMarch 13, 2025
- Done: Passes the HouseApril 21, 202587–4
- Done: Senate committeeApril 22, 2025
- Done: Passes the SenateApril 20, 202633–11
- Done: To the GovernorMay 11, 2026
- Done: Signed into lawMay 19, 2026
Signed into law What’s a funnel?
What’s in it
AI summary Companies that provide telecommunications services would no longer have to pay sales or use tax on certain types of equipment. This change removes a requirement that the equipment must be used primarily for those services to qualify for the tax break. It applies to all purchases of central office and transmission equipment used to provide these services.1
Read the official explanation
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.
Changed since by amendment S-5183; see Amendments.
Senate subcommittee
Named January 25, 2026. On March 11, 2026 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill expands sales and use tax exemptions for certain equipment used to provide telecommunications and internet services. Starting in fiscal year 2027, it is estimated to decrease annual revenue for the state's General Fund by $0.9 million, the SAVE Fund by $0.2 million, and the LOST fund by $0.2 million.3
From the note: House File 960 is estimated to decrease annual revenue to the General Fund, the SAVE Fund, and the LOST by the amounts in Figure 1.
- Final Fiscal Note — Communications Network Equipment Sales Tax Exemption · May 13, 2026
- Communications Network Equipment Sales Tax Exemption · April 20, 2026
- Communications Network Equipment Sales Tax Exemption · April 15, 2026
- Communications Network Equipment Sales Tax Exemption · April 28, 2025
- Communications Network Equipment Sales Tax Exemption · March 24, 2025
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Tried before
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91st General Assembly
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None became law, though one got through a chamber.
- HF 2635 Relating to the sales tax exemption for the purchase of central office equipment or transm…90th General Assembly · Passed House · same titlePassed a chamber
Similar bills this General Assembly
- 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.