Senate File 429

                                    SENATE FILE       
                                    BY  DVORSKY, WARNSTADT, BEALL,
                                        HOLVECK, HATCH, QUIRMBACH,
                                        RAGAN, BLACK, KIBBIE, GRONSTAL,
                                        CONNOLLY, STEWART, HORN, DEARDEN,
                                        COURTNEY, KREIMAN, FRAISE, SENG,
                                        BOLKCOM, DOTZLER, and McCOY


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act exempting active duty pay of members of the national guard
  2    and armed forces reserve from the individual income tax and
  3    including effective and retroactive applicability date
  4    provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2778XS 80
  7 mg/cf/24

PAG LIN

  1  1    Section 1.  Section 422.7, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  39.  Subtract to the extent included,
  1  4 active duty pay received by a person in the national guard or
  1  5 armed forces reserve for services performed on or after
  1  6 January 1, 2003, pursuant to military orders activating the
  1  7 person's unit.
  1  8    Sec. 2.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  1  9 being deemed of immediate importance, takes effect upon
  1 10 enactment and applies retroactively to January 1, 2003, for
  1 11 tax years beginning on or after that date.
  1 12                           EXPLANATION
  1 13    This bill exempts from individual income tax active duty
  1 14 pay received while a person as a member of the national guard
  1 15 or armed forces reserve is on active duty.
  1 16    The bill takes effect upon enactment and applies
  1 17 retroactively to January 1, 2003, for the tax years beginning
  1 18 on or after that date.
  1 19 LSB 2778XS 80
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