Senate Study Bill 1060





                                       SENATE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            WAYS AND MEANS BILL BY
                                            CO=CHAIRPERSON ZIEMAN)


    Passed Senate, Date                Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the sales and use tax exemption for central
  2    office equipment and transmission equipment used in
  3    telecommunications operations.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1888SC 81
  6 mg/cf/24

PAG LIN



  1  1    Section 1.  Section 423.3, Code 2005, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  85.  The sales price from the sale or
  1  4 rental of central office equipment or transmission equipment
  1  5 primarily used by local exchange carriers and competitive
  1  6 local exchange service providers as defined in section 476.96;
  1  7 by franchised cable television operators, mutual companies,
  1  8 municipal utilities, cooperatives, and companies furnishing
  1  9 communications services that are not subject to rate
  1 10 regulation as provided in chapter 476; by long distance
  1 11 companies as defined in section 477.10; or for a commercial
  1 12 mobile radio service as defined in 47 C.F.R. } 20.3 in the
  1 13 furnishing of telecommunications services on a commercial
  1 14 basis.  For the purposes of this subsection, "central office
  1 15 equipment" means equipment utilized in the initiating,
  1 16 processing, amplifying, switching, or monitoring of
  1 17 telecommunications services.  "Transmission equipment" means
  1 18 equipment utilized in the process of sending information from
  1 19 one location to another location.  "Central office equipment"
  1 20 and "transmission equipment" also include ancillary equipment
  1 21 and apparatus which support, regulate, control, repair, test,
  1 22 or enable such equipment to accomplish its function.
  1 23                           EXPLANATION
  1 24    This bill exempts from state sales and use taxes central
  1 25 office equipment and transmission equipment sold or rented for
  1 26 use in transporting communications services by local exchange
  1 27 carriers, competitive local exchange service providers,
  1 28 certain franchised cable television operators, mutual
  1 29 companies, cooperatives, and municipal utilities not subject
  1 30 to rate regulation, long distance companies, and commercial
  1 31 mobile radio services.  The bill defines central office
  1 32 equipment as equipment used in initiating, processing,
  1 33 amplifying, switching, or monitoring of telecommunications
  1 34 services and any ancillary equipment.  Transmission equipment
  1 35 is defined as equipment utilized in sending information and
  2  1 any ancillary equipment.
  2  2 LSB 1888SC 81
  2  3 mg/cf/24