Text: SSB03220 Text: SSB03222 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.45, Code Supplement 1999, is 1 2 amended by adding 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 franchised cable television operators, 1 8 mutual companies, municipal utilities, cooperatives, and 1 9 companies furnishing communications services which are not 1 10 subject to rate regulation as provided in chapter 476; by long 1 11 distance companies as defined in section 477.10; or for a 1 12 commercial mobile radio service as defined in 47 C.F.R. } 20.3 1 13 in the furnishing of telecommunications services on a 1 14 commercial basis. For the purposes of this subsection, 1 15 "central office equipment" means equipment utilized in the 1 16 initiating, processing, amplifying, switching, or monitoring 1 17 of telecommunications services. "Central office equipment" 1 18 also includes ancillary equipment and apparatus which 1 19 supports, regulates, controls, repairs, tests, or enables 1 20 central office equipment to accomplish its function. 1 21 b. The exemption in this subsection shall be phased in by 1 22 means of tax refunds as follows: 1 23 (1) If the sale or rental occurs between July 1, 2001, and 1 24 June 30, 2002, the tax on one-fifth of the gross receipts 1 25 shall be refunded. 1 26 (2) If the sale or rental occurs between July 1, 2002, and 1 27 June 30, 2003, the tax on two-fifths of the gross receipts 1 28 shall be refunded. 1 29 (3) If the sale or rental occurs between July 1, 2003, and 1 30 June 30, 2004, the tax on three-fifths of the gross receipts 1 31 shall be refunded. 1 32 (4) If the sale or rental occurs between July 1, 2004, and 1 33 June 30, 2005, the tax on four-fifths of the gross receipts 1 34 shall be refunded. 1 35 (5) If the sale or rental occurs on or after July 1, 2005, 2 1 all of the gross receipts are exempt and no payment of tax and 2 2 subsequent refund are required. 2 3 c. For sales or rentals occurring between July 1, 2001, 2 4 and June 30, 2005, a refund of the tax paid as provided in 2 5 paragraph "b", subparagraph (1), (2), (3), or (4), must be 2 6 applied for, not later than six months after the sale or 2 7 rental occurred, in the manner and on the forms provided by 2 8 the department. Refunds authorized shall accrue interest at 2 9 the rate in effect under section 421.7 from the first day of 2 10 the second calendar month following the date the refund claim 2 11 is received by the department. 2 12 Sec. 2. EFFECTIVE DATE. This Act takes effect July 1, 2 13 2001. 2 14 EXPLANATION 2 15 This bill exempts from the state sales and use taxes 2 16 central office equipment and transmission equipment sold or 2 17 rented for use in transporting communications services by 2 18 local exchange carriers, competitive local exchange service 2 19 providers, certain franchised cable television operators, 2 20 mutual companies, cooperatives, and municipal utilities not 2 21 subject to rate regulation, long distance companies, and 2 22 commercial mobile radio services. However, the exemption is 2 23 phased in by means of tax refunds over a five-year period 2 24 beginning July 1, 2001. After June 30, 2005, the equipment 2 25 will be completely tax exempt. The bill defines central 2 26 office equipment as equipment used in initiating, processing, 2 27 amplifying, switching, or monitoring of telecommunications 2 28 services and any ancillary equipment. 2 29 The bill takes effect July 1, 2001. 2 30 LSB 7181SC 78 2 31 mg/cf/24
Text: SSB03220 Text: SSB03222 Text: SSB03200 - SSB03299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Mar 22 03:35:53 CST 2000
URL: /DOCS/GA/78GA/Legislation/SSB/03200/SSB03221/000321.html
jhf