This bill amends the sales tax exemption for the purchase of central office equipment or transmission equipment used by various entities in the telecommunications sector. Specifically, it modifies Section 423.3, subsection 47A, paragraph a, by deleting the term "primarily," thereby expanding the exemption to include all purchases of such equipment used in the furnishing of telecommunications services on a commercial basis. This change allows a broader range of entities, including local exchange carriers, competitive local exchange service providers, franchised cable television operators, and others, to benefit from the sales tax exemption.

The bill clarifies that the sales price from the sale of central office equipment or transmission equipment is exempt from sales tax, which also extends to the use tax as per Code section 423.6. This legislative change aims to support the telecommunications industry by reducing the financial burden associated with purchasing essential equipment, thereby promoting the provision of telecommunications services.

Statutes affected:
Introduced: 423.3