SF636 • 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 SSB 1209 .)

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: COMMITTEE ON WAYS AND MEANS
Last action: 2026-01-14
Official status: Subcommittee: Bousselot, Bisignano, and Dawson. S.J. 89 .
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill 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 SSB 1209 .)

What This Bill Does

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 SSB 1209 .)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-01-14 Iowa Legislature
Subcommittee: Bousselot, Bisignano, and Dawson. S.J. 89 .
2026-01-14 Iowa Legislature
* * * * * END OF 2025 ACTIONS * * * * *
2025-06-16 Iowa Legislature
Referred to Ways and Means. S.J. 1058 .
2025-04-28 Iowa Legislature
Fiscal note .
2025-04-22 Iowa Legislature
Attached to HF 960 . S.J. 847 .
2025-04-22 Iowa Legislature
Committee report, approving bill. S.J. 859 .
2025-04-22 Iowa Legislature
Introduced, placed on Ways and Means calendar. S.J. 858 .

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 SSB 1209 .)

Current Bill Text

Read the full stored bill text

Senate

File

636

-

Introduced

SENATE

FILE

636

BY

COMMITTEE

ON

WAYS

AND

MEANS

(SUCCESSOR

TO

SSB

1209)

(COMPANION

TO

HF

960

BY

COMMITTEE

ON

WAYS

AND

MEANS)

A

BILL

FOR

An

Act

relating

to

the

sales

tax

exemption

for

the

purchase

1

of

central

office

equipment

or

transmission

equipment

2

used

by

certain

entities

primarily

in

the

furnishing

of

3

telecommunications

services

on

a

commercial

basis.

4

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

5

TLSB

2095SV

(1)

91

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S.F.

636

Section

1.

Section

423.3,

subsection

47A,

paragraph

a,

Code

1

2025,

is

amended

to

read

as

follows:

2

a.

The

sales

price

from

the

sale

of

central

office

equipment

3

or

transmission

equipment

primarily

used

by

local

exchange

4

carriers

and

competitive

local

exchange

service

providers;

5

by

franchised

cable

television

operators,

mutual

companies,

6

municipal

utilities,

cooperatives,

and

companies

furnishing

7

communications

services

that

are

not

subject

to

rate

regulation

8

as

provided

in

chapter

476

;

by

long

distance

companies

as

9

defined

in

section

477.10

;

or

for

a

commercial

mobile

radio

10

service

as

defined

in

47

C.F.R.

§20.3

in

the

furnishing

of

11

telecommunications

services

on

a

commercial

basis.

12

EXPLANATION

13

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

14

the

explanation’s

substance

by

the

members

of

the

general

assembly.

15

This

bill

relates

to

the

sales

tax

exemption

for

the

purchase

16

of

central

office

equipment

or

transmission

equipment

used

17

by

certain

entities

in

the

furnishing

of

telecommunications

18

services

on

a

commercial

basis.

19

The

bill

expands

the

sales

tax

exemption

for

the

purchase

of

20

central

office

equipment

or

transmission

equipment

by

striking

21

the

term

“primarily”

and

making

all

such

purchases

used

in

the

22

furnishing

of

telecommunications

services

exempt

from

sales

23

tax.

24

Code

section

423.3(47A)

defines

the

terms

“central

office

25

equipment”

and

“transmission

equipment”.

26

By

operation

of

Code

section

423.6,

an

item

exempt

from

the

27

imposition

of

the

sales

tax

is

also

exempt

from

the

use

tax

28

imposed

in

Code

section

423.5.

29

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