HF960 • 2026

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis. (Formerly HSB 235 .) Effective date: 07/01/2026.

Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: COMMITTEE ON WAYS AND MEANS
Last action: 2026-05-19
Official status: Signed by Governor . H.J. 05/19 .
Effective date: Not listed

Plain English Breakdown

The official source material does not specify that customers are directly affected.

Sales Tax Exemption for Telecommunications Equipment

This law removes sales tax on central office equipment and transmission equipment when these items are purchased by companies providing telecommunications services commercially.

What This Bill Does

Removes the sales tax on central office equipment and transmission equipment when these items are bought by companies providing telecom services commercially.

Who It Names or Affects

Companies that provide telecommunications services on a commercial basis

Terms To Know

Telecommunications Services: Services like phone calls, internet access, and other forms of communication over wires or wireless networks.
Commercial Basis: When services are provided to customers for a fee rather than being offered freely or as part of another service.

Limits and Unknowns

The law only applies to certain types of equipment used in providing telecom services.
It does not cover all companies that might use such equipment, just those specified by the bill.

Bill History

2026-05-19 Iowa Legislature
Signed by Governor . H.J. 05/19 .
2026-05-13 Iowa Legislature
Fiscal note .
2026-05-11 Iowa Legislature
Reported correctly enrolled, signed by Speaker and President, and sent to Governor. H.J. 05/11 .
2026-05-01 Iowa Legislature
Explanation of vote. H.J. 1082 .
2026-04-22 Iowa Legislature
Message from House. S.J. 877 .
2026-04-22 Iowa Legislature
Immediate message. H.J. 985 .
2026-04-22 Iowa Legislature
Passed House , yeas 86, nays 3. H.J. 979 .
2026-04-22 Iowa Legislature
House concurred in Senate amendment H-8388 . H.J. 979 .
2026-04-20 Iowa Legislature
Fiscal note .
2026-04-20 Iowa Legislature
Senate amendment H-8388 filed. H.J. 953 .
2026-04-20 Iowa Legislature
Message from Senate. H.J. 948 .
2026-04-20 Iowa Legislature
Immediate message. S.J. 839 .
2026-04-20 Iowa Legislature
Passed Senate , yeas 33, nays 11. S.J. 838 .
2026-04-20 Iowa Legislature
Amendment S-5183 adopted. S.J. 838 .
2026-04-15 Iowa Legislature
Fiscal note .
2026-04-15 Iowa Legislature
Placed on calendar.
2026-04-15 Iowa Legislature
Amendment S-5183 filed. S.J. 809 .
2026-04-15 Iowa Legislature
Committee report, recommending amendment and passage. S.J. 809 .
2026-03-11 Iowa Legislature
Subcommittee recommends passage.
2026-03-10 Iowa Legislature
Subcommittee Meeting: [].
2026-01-25 Iowa Legislature
Subcommittee: Gruenhagen, Bisignano, and Dawson.
2026-01-25 Iowa Legislature
* * * * * END OF 2025 ACTIONS * * * * *
2025-06-16 Iowa Legislature
Referred to Ways and Means. S.J. 1058 .
2025-04-22 Iowa Legislature
Read first time, attached to SF 636 . S.J. 847 .
2025-04-22 Iowa Legislature
Message from House. S.J. 847 .
2025-04-21 Iowa Legislature
Immediate message. H.J. 1010 .
2025-04-21 Iowa Legislature
Passed House , yeas 87, nays 4. H.J. 1001 .
2025-03-24 Iowa Legislature
Fiscal note .
2025-03-13 Iowa Legislature
Introduced, placed on Ways and Means calendar. H.J. 656 .

Official Summary Text

A bill for an act relating to the sales tax exemption for the purchase of central office equipment or transmission equipment used by certain entities primarily in the furnishing of telecommunications services on a commercial basis. (Formerly HSB 235 .) Effective date: 07/01/2026.

Current Bill Text

Read the full stored bill text

Kim Reynolds
GOVERNOR
Office of the GovernorChris Cournoyer
LT GOVERNOR
May 19, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 960, an Act relating to the sales tax exemption for the purchase of central
office equipment or transmission equipment used by certain entities primarily in the
furnishing of telecommunications services on a commercial basis.
The above House File is hereby approved on this date.
Sincerely,
Kimleynolds
Govemor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
iMttMiitirnntiiiiiM]iiii i iiiii]Mii}(iiffiiii)(nntiNriiii iiuu«iMiUi
gi:ni:rai. assi:mbia
House File 960
AN ACT
RELATING TO THE SALES TAX EXEMPTION FOR THE PURCHASE OF CENTRAL
OFFICE EQUIPMENT OR TRANSMISSION EQUIPMENT USED BY CERTAIN
ENTITIES PRIMARILY IN THE FURNISHING OF TELECOMMUNICATIONS
SERVICES ON A COMMERCIAL BASIS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1, Section 423.3, subsection 47A, paragraph a. Code
2026, is amended to read as follows:
a. The sales price from the sale of central office equipment
or transmission equipment primarily used in the furnishing of
telecommunications services, internet access services, or a
combination of these, on a commercial basis by local exchange
carriers and competitive local exchange service providers;
by franchised cable television operators, mutual companies,
municipal utilities, cooperatives, and companies furnishing
communications services that are not subject to rate regulation
as provided in chapter 476; by long distance companies as
House File 960, p. 2
defined in section 477.10; or ^ a provider of commercial
mobile radio service as defined in 47 C.F.R. §20.3 in the
furnishing of tGlccommunicationa oervicos on a commorcial
baaia.
PAT GRASSL]
Speaker or the House
AMY SINCLAIR
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 960, Ninety-first General Assembly.
Approved 2026
MEGHAN NELSON/ 1
Chilet Clerk of the House
KIM REYNOLDS
Governor