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, and other companies providing communications services exempt from sales tax, regardless of the extent of their use in furnishing telecommunications services on a commercial basis.

Additionally, the bill clarifies that the exemption from sales tax also applies to the use tax imposed under Code section 423.5, as per the provisions of Code section 423.6. This change aims to provide broader financial relief to entities involved in telecommunications by eliminating the previous limitation on the sales tax exemption, thereby encouraging investment in necessary equipment for service provision.

Statutes affected:
Introduced: 423.3