Text: HF00767 Text: HF00769 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.45, Code 1999, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 28. a. The gross receipts from the sale 1 4 or rental of central office equipment or transmission 1 5 equipment primarily used by local exchange carriers and 1 6 competitive local exchange service providers as defined in 1 7 section 476.96; by mutual companies, municipal utilities, 1 8 cooperatives, and companies furnishing communications services 1 9 which are not subject to rate regulation as provided in 1 10 chapter 476; by long distance companies as defined in section 1 11 477.10; or for a commercial mobile radio service as defined in 1 12 47 C.F.R. } 20.3 in the furnishing of telecommunications 1 13 services on a commercial basis. For the purposes of this 1 14 subsection, "central office equipment" means equipment 1 15 utilized in the initiating, processing, amplifying, switching, 1 16 or monitoring of telecommunications services. "Central office 1 17 equipment" also includes ancillary equipment and apparatus 1 18 which supports, regulates, controls, repairs, tests, or 1 19 enables central office equipment to accomplish its function. 1 20 b. The exemption in this subsection shall be phased in by 1 21 means of tax refunds as follows: 1 22 (1) If the sale or rental occurs between July 1, 1999, and 1 23 June 30, 2000, the tax on one-third of the gross receipts 1 24 shall be refunded. 1 25 (2) If the sale or rental occurs between July 1, 2000, and 1 26 June 30, 2001, the tax on two-thirds of the gross receipts 1 27 shall be refunded. 1 28 (3) If the sale or rental occurs on or after July 1, 2001, 1 29 all of the gross receipts are exempt and no payment of tax and 1 30 subsequent refund is required. 1 31 c. For sales or rentals occurring between July 1, 1999, 1 32 and June 30, 2001, a refund of the tax paid as provided in 1 33 paragraph "b", subparagraph (1) or (2), may be applied for. 1 34 Application must be made, not later than six months after the 1 35 sale or rental occurred, in the manner and on the forms 2 1 provided by the department. Refunds authorized shall accrue 2 2 interest at the rate in effect under section 421.7 from the 2 3 first day of the second calendar month following the date the 2 4 refund claim is received by the department. 2 5 EXPLANATION 2 6 This bill exempts from the state sales and use taxes 2 7 central office equipment and transmission equipment sold or 2 8 rented for use in transporting communications services to 2 9 local exchange carriers, competitive local exchange service 2 10 providers, certain mutual companies, cooperatives, and 2 11 municipal utilities not subject to rate regulation, long 2 12 distance companies, and commercial mobile radio services. 2 13 However, the exemption is phased in by means of tax refunds 2 14 over a three-year period beginning July 1, 1999. After June 2 15 30, 2001, the equipment will be completely exempt. The bill 2 16 defines central office equipment as equipment used in 2 17 initiating, processing, amplifying, switching, or monitoring 2 18 of telecommunications services and any ancillary equipment. 2 19 LSB 1766HV 78 2 20 mg/cf/24
Text: HF00767 Text: HF00769 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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