This bill amends Iowa Code section 423.3, subsection 47A, to expand the sales tax exemption for the purchase of central office equipment and transmission equipment used by various entities in the provision of telecommunications services on a commercial basis. The key change involves the deletion of the term "primarily," which broadens the scope of the exemption to include all purchases of such equipment, rather than limiting it to those used primarily for telecommunications services.

As a result of this amendment, local exchange carriers, competitive local exchange service providers, franchised cable television operators, mutual companies, municipal utilities, cooperatives, and long-distance companies will benefit from a more comprehensive sales tax exemption. Additionally, the bill clarifies that items exempt from sales tax under this provision will also be exempt from the use tax, as outlined in Code section 423.6.

Statutes affected:
Introduced: 423.3