HB 6489 Summary

• Amends the General Sales Tax Act to add a new exemption for telecommunications, video service, and internet access equipment purchased by qualified taxpayers.

• Exempts sales of central office equipment, station equipment, mobile telecommunications switching office equipment, radio/microwave transmitting or receiving equipment (including towers and antennae) when sold to qualified taxpayers.

• Exempts sales of personal property and equipment used in headend or similar facilities operated by persons furnishing video service, cable radio service, satellite television or radio service, or internet access service.

• Defines "qualified taxpayer" as persons who use the exempt property to provide taxable telecommunications services, or to furnish video service, internet access services, or VOIP service.

• Clarifies that the exemption under section 4v applies only to the extent property is used for exempt purposes with an irrebuttable presumption that 90% of total use is for exempt purposes.