ID H0603

Exempts telecommunications machinery and equipment from sales and use tax effective July 1, 2014, when purchased and used by businesses primarily providing telecommunications service, data processing, outsource IT services, or computer equipment colocation services.

Defines "telecommunications machinery and equipment" to include antennas, amplifiers, fiber-optic cable, routers, servers, network software, towers, switches, and similar equipment used to send, receive, store, or monitor voice or data communications.

Requires that the machinery and equipment be directly used and consumed in operations and that such use be necessary or essential to the performance of the business operation.

Defines "telecommunications service" as two-way interactive transmission of sounds, messages, data, or information by wire, radio, lightwaves, or electromagnetic means that originates and terminates in Idaho and is offered to the public or a portion thereof.

Defines "data center" as a facility specifically designed to house networked computers and processing equipment that provides data processing, outsource IT services, and computer equipment colocation services to persons other than the facility operator.