This bill amends Section 423.3, subsection 47A, paragraph a of the Iowa Code to expand the sales tax exemption for the purchase of central office equipment or transmission equipment used by various entities in the telecommunications sector. The amendment removes the term "primarily," thereby making all purchases of such equipment by local exchange carriers, competitive local exchange service providers, franchised cable television operators, mutual companies, municipal utilities, cooperatives, companies providing unregulated communications services, long-distance companies, and commercial mobile radio services fully exempt from sales tax when used in the furnishing of telecommunications services on a commercial basis.

Additionally, the bill clarifies that items exempt from sales tax under this provision are also exempt from the use tax, as outlined in Code section 423.6. This change aims to provide broader tax relief to entities involved in telecommunications, thereby potentially encouraging investment and growth within the industry.

Statutes affected:
Introduced: 423.3