Text: SSB01206 Text: SSB01208 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.45, subsection 27, paragraph a, 1 2 Code 1999, is amended by adding the following new 1 3 subparagraph: 1 4 NEW SUBPARAGRAPH. (7) (a) Central office equipment or 1 5 transmission equipment primarily used in the furnishing of 1 6 telecommunications services on a commercial basis. For 1 7 purposes of this subparagraph, the following definitions 1 8 apply: 1 9 (i) "Central office equipment" includes, but is not 1 10 limited to, equipment utilized in the initiating, processing, 1 11 amplifying, switching, or monitoring of telecommunications 1 12 services. "Central office equipment" also includes ancillary 1 13 equipment and apparatus which supports, regulates, controls, 1 14 repairs, tests, or enables central office equipment to 1 15 accomplish its function. 1 16 (ii) "Telecommunications services" means the service of 1 17 originating, transmitting, terminating, or recording of 1 18 interactive two-way voice, data, or information messages 1 19 between points selected by the originator without change in 1 20 the content. 1 21 (iii) "Transmission equipment" includes, but is not 1 22 limited to, equipment used in the transport of 1 23 telecommunications signals. "Transmission equipment" also 1 24 includes cable, fiber, radio transmitters and receivers, 1 25 satellite equipment, microwave, and ancillary equipment and 1 26 apparatus which supports, regulates, controls, repairs, tests, 1 27 or enables transmission equipment to accomplish its function. 1 28 (b) The exemption in this subparagraph shall be phased in 1 29 as follows: 1 30 (i) If the sale or rental occurs between July 1, 1999, and 1 31 June 30, 2000, one-third of the gross receipts are exempt. 1 32 (ii) If the sale or rental occurs between July 1, 2000, 1 33 and June 30, 2001, two-thirds of the gross receipts are 1 34 exempt. 1 35 (iii) If the sale or rental occurs on or after July 1, 2 1 2001, all of the gross receipts are exempt. 2 2 Sec. 2. Section 427.1, Code 1999, is amended by adding the 2 3 following new subsection: 2 4 NEW SUBSECTION. 30. FIBER OPTIC AND COPPER CABLE. Fiber 2 5 optic cable and copper cable of telephone companies taxed 2 6 under chapter 433 which are initially installed or deployed in 2 7 this state on or after July 1, 1999, are exempt from taxation. 2 8 Sec. 3. IMPLEMENTATION OF ACT. Section 25B.7 does not 2 9 apply to the exemption provided in section 2 of this Act. 2 10 EXPLANATION 2 11 This bill adds central office equipment and transmission 2 12 equipment sold or rented for use in transporting 2 13 communications services to the list of industrial machinery, 2 14 computers, and equipment which are exempt from state sales and 2 15 use taxes. However, the exemption is phased in over a three- 2 16 year period beginning July 1, 1999. After June 30, 2001, the 2 17 equipment will be completely exempt. The bill defines central 2 18 office equipment as equipment used in initiating, processing, 2 19 amplifying, switching, or monitoring of telecommunications 2 20 services and any ancillary equipment. Telecommunications 2 21 services means the service of the origination, transmission, 2 22 termination, or recordation of interactive two-way voice, 2 23 data, or information messages between points. Transmission 2 24 equipment is also defined. 2 25 The bill also exempts from property taxation the fiber 2 26 optic cable and copper cable of telephone companies, assessed 2 27 and taxed under Code chapter 433, which are initially 2 28 installed or deployed in the state on or after July 1, 1999. 2 29 LSB 3232SC 78 2 30 mg/cf/24
Text: SSB01206 Text: SSB01208 Text: SSB01200 - SSB01299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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