SF 249 (LSB 2137XS (4) 86)

SENATE FILE 249

BY  WHITVER and CHELGREN

A BILL FOR

An Act reducing the individual income tax rates and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.5, subsection 1, paragraphs a through i, Code 2015, are amended to read as follows:
   a.  On all taxable income from zero through one thousand dollars, thirty-six thirty-two hundredths of one percent.
   b.  On all taxable income exceeding one thousand dollars but not exceeding two thousand dollars, seventy-two sixty-five hundredths of one percent.
   c.  On all taxable income exceeding two thousand dollars but not exceeding four thousand dollars, two and forty-three nineteen hundredths percent.
   d.  On all taxable income exceeding four thousand dollars but not exceeding nine thousand dollars, four and one-half five hundredths percent.
   e.  On all taxable income exceeding nine thousand dollars but not exceeding fifteen thousand dollars, six five and twelve fifty-one hundredths percent.
   f.  On all taxable income exceeding fifteen thousand dollars but not exceeding twenty thousand dollars, six five and forty-eight eighty-three hundredths percent.
   g.  On all taxable income exceeding twenty thousand dollars but not exceeding thirty thousand dollars, six and eight-tenths twelve hundredths percent.
   h.  On all taxable income exceeding thirty thousand dollars but not exceeding forty-five thousand dollars, seven and ninety-two thirteen hundredths percent.
   i.  On all taxable income exceeding forty-five thousand dollars, eight and ninety-eight eight hundredths percent.
    Sec. 2.  EFFECTIVE DATE.  This Act takes effect January 1, 2016.
    Sec. 3.  APPLICABILITY.  This Act applies to tax years beginning on or after January 1, 2016.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill reduces by approximately 10 percent the tax rate for each of the nine tax brackets of the individual income tax.
   The current individual income tax rates range from a low of .36 percent to a high of 8.98 percent. The bill changes these rates to a low of .32 percent to a high of 8.08 percent.
   The bill takes effect January 1, 2016, and applies to tax years beginning on or after that date.