IowaIowa law exempts some commercial communications equipment from sales tax
The law exempts certain commercial communications providers from sales tax on equipment used mainly for telecommunications or internet access services.
What it does
Certain commercial communications providers are exempt from sales tax on central office or transmission equipment used mainly for their services. Mobile radio providers qualify when the equipment is used for telecommunications services.
Argument forEligible providers could pay less tax on equipment used mainly to provide commercial phone or internet access services.
Argument againstProviders whose equipment is not used mainly for the listed commercial services may not qualify for the tax exemption.
More detail
The law exempts the sales price of certain central office or transmission equipment from sales tax. It covers local and competitive phone carriers, cable operators, mutual companies, municipal utilities, cooperatives, certain communications companies, long distance companies, and commercial mobile radio service providers. For commercial mobile radio service providers, the equipment must be used to provide telecommunications services; internet access is not listed for that provider group.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 19Signed by Governor Kim Reynolds.Became Law
- May 13Fiscal note.
- May 11Reported correctly enrolled, signed by Speaker and President, and sent to Governor.To Governor
- May 1Explanation of vote.
- Apr 22Message from House.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Apr 22Immediate message.
- Apr 22Passed House, yeas 86, nays 3.Major
- Apr 22House concurred in Senate amendment H-8388.
- Apr 20Fiscal note.
- Vote recorded Shall the bill pass? Result: pass.Upper
- Apr 20Senate amendment H-8388 filed.Minor
- Apr 20Message from Senate.
- Apr 20Immediate message.
- Apr 20Passed Senate, yeas 33, nays 11.Passed 2nd Chamber
- Apr 20Amendment S-5183 adopted.Major
- Apr 15Fiscal note.
- Apr 15Placed on calendar.
- Apr 15Amendment S-5183 filed.Minor
- Apr 15Committee report, recommending amendment and passage.Minor
- Mar 11Subcommittee recommends passage.Minor
- Mar 10Subcommittee Meeting: 03/11/2026 12:00PM Room 217 Conference Room.
- Jan 25Subcommittee: Gruenhagen, Bisignano, and Dawson.
- 2025
- Jun 16Referred to Ways and Means.Minor
- Apr 22Read first time, attached to SF 636.Minor
- Apr 22Message from House.
- Apr 21Immediate message.
- Vote recorded Shall the bill pass? Result: pass.Lower
- Apr 21Passed House, yeas 87, nays 4.Passed 1st Chamber
- Mar 24Fiscal note.
- Mar 13Introduced, placed on Ways and Means calendar.Introduced
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