Text: HF00767                           Text: HF00769
Text: HF00700 - HF00799                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index



House File 768

Partial Bill History

Bill Text

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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