Text: H03404 Text: H03406 Text: H03400 - H03499 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the amendment, H-3339, to House File 336 as 1 2 follows: 1 3 #1. Page 1, by striking line 4 and inserting the 1 4 following: 1 5 "DIVISION I 1 6 PROPERTY TAX-RELATED PROVISIONS 1 7 Sec. . MENTAL HEALTH, MENTAL RETARDATION, AND 1 8 DEVELOPMENTAL DISABILITIES PROPERTY TAX RELIEF FUND. 1 9 There is appropriated from the general fund of the 1 10 state to the department of mental health, mental 1 11 retardation, and developmental disabilities property 1 12 tax relief fund for the fiscal year beginning July 1, 1 13 1995, and ending June 30, 1996, the following amount, 1 14 or so much thereof as is necessary, to be used for the 1 15 purposes designated: 1 16 For property tax relief in accordance with the 1 17 provisions of section 331.438A, subsection 2: 1 18 .................................................. $ 54,400,000 1 19 Sec. 2. MEDICAL ASSISTANCE COSTS FOR SERVICES". 1 20 #2. Page 12, line 10, by inserting before the word 1 21 "disabilities" the following: "developmental". 1 22 #3. By striking page 20, line 43, through page 21, 1 23 line 30. 1 24 #4. Page 22, line 2, by striking the words and 1 25 figure "section 1 of this Act" and inserting the 1 26 following: "section 2 of this division of this Act". 1 27 #5. Page 22, line 12, by inserting after the word 1 28 "of" the following: "this division of". 1 29 #6. Page 22, by striking lines 16 and 17 and 1 30 inserting the following: 1 31 "3. The remainder of this division of this Act, 1 32 being deemed of immediate importance, takes effect 1 33 upon enactment. 1 34 DIVISION II 1 35 SUBCHAPTER S CORPORATIONS 1 36 Sec. . Section 422.5, subsection 1, paragraph 1 37 j, Code 1995, is amended by adding the following new 1 38 unnumbered paragraph: 1 39 NEW UNNUMBERED PARAGRAPH. The tax imposed upon the 1 40 taxable income of a resident shareholder in a 1 41 corporation which has in effect for the tax year an 1 42 election under subchapter S of the Internal Revenue 1 43 Code and carries on business within and without the 1 44 state shall be computed by reducing the amount 1 45 determined pursuant to paragraphs "a" through "i" by 1 46 the amounts of nonrefundable credits under this 1 47 division and by multiplying this resulting amount by a 1 48 fraction of which the resident's net income allocated 1 49 to Iowa, as determined in section 422.8, subsection 2, 1 50 paragraph "b", is the numerator and the resident's 2 1 total net income computed under section 422.7 is the 2 2 denominator. This paragraph also applies to 2 3 individuals who are residents of Iowa for less than 2 4 the entire tax year. 2 5 Sec. . Section 422.5, subsection 1, paragraph 2 6 k, unnumbered paragraph 4, Code 1995, is amended to 2 7 read as follows: 2 8 In the case of a resident, including a resident 2 9 estate or trust, the state's apportioned share of the 2 10 state alternative minimum tax is one hundred percent 2 11 of the state alternative minimum tax computed in this 2 12 subsection. In the case of a resident or part year 2 13 resident shareholder in a corporation which has in 2 14 effect for the tax year an election under subchapter S 2 15 of the Internal Revenue Code and carries on business 2 16 within and without the state, a nonresident, including 2 17 a nonresident estate or trust, or an individual, 2 18 estate, or trust that is domiciled in the state for 2 19 less than the entire tax year, the state's apportioned 2 20 share of the state alternative minimum tax is the 2 21 amount of tax computed under this subsection, reduced 2 22 by the applicable credits in sections 422.10 through 2 23 422.12 and this result multiplied by a fraction with a 2 24 numerator of the sum of state net income allocated to 2 25 Iowa as determined in section 422.8, subsection 2, 2 26 paragraph "a" or "b" as applicable, plus tax 2 27 preference items, adjustments, and losses under 2 28 subparagraph (1) attributable to Iowa and with a 2 29 denominator of the sum of total net income computed 2 30 under section 422.7 plus all tax preference items, 2 31 adjustments, and losses under subparagraph (1). In 2 32 computing this fraction, those items excludable under 2 33 subparagraph (1) shall not be used in computing the 2 34 tax preference items. Married taxpayers electing to 2 35 file separate returns or separately on a combined 2 36 return must allocate the minimum tax computed in this 2 37 subsection in the proportion that each spouse's 2 38 respective preference items, adjustments, and losses 2 39 under subparagraph (1) bear to the combined preference 2 40 items, adjustments, and losses under subparagraph (1) 2 41 of both spouses. 2 42 Sec. . Section 422.8, subsection 2, Code 1995, 2 43 is amended to read as follows: 2 44 2. a. Nonresident's net income allocated to Iowa 2 45 is the net income, or portion thereof, which is 2 46 derived from a business, trade, profession, or 2 47 occupation carried on within this state or income from 2 48 any property, trust, estate, or other source within 2 49 Iowa. However, income derived from a business, trade, 2 50 profession, or occupation carried on within this state 3 1 and income from any property, trust, estate, or other 3 2 source within Iowa shall not include distributions 3 3 from pensions, including defined benefit or defined 3 4 contribution plans, annuities, individual retirement 3 5 accounts, and deferred compensation plans or any 3 6 earnings attributable thereto so long as the 3 7 distribution is directly related to an individual's 3 8 documented retirement and received while the 3 9 individual is a nonresident of this state. If a 3 10 business, trade, profession, or occupation is carried 3 11 on partly within and partly without the state, only 3 12 the portion of the net income which is fairly and 3 13 equitably attributable to that part of the business, 3 14 trade, profession, or occupation carried on within the 3 15 state is allocated to Iowa for purposes of section 3 16 422.5, subsection 1, paragraph "j", and section 422.13 3 17 and income from any property, trust, estate, or other 3 18 source partly within and partly without the state is 3 19 allocated to Iowa in the same manner, except that 3 20 annuities, interest on bank deposits and interest- 3 21 bearing obligations, and dividends are allocated to 3 22 Iowa only to the extent to which they are derived from 3 23 a business, trade, profession, or occupation carried 3 24 on within the state. 3 25 b. A resident's income allocable to Iowa is the 3 26 income determined under section 422.7 reduced by items 3 27 of income and expenses from a subchapter S corporation 3 28 which pass directly to the shareholders under 3 29 provisions of the Internal Revenue Code and increased 3 30 by the greater of the following: 3 31 (1) The net income or loss of the corporation 3 32 which is fairly and equitably attributable to this 3 33 state under section 422.33, subsections 2 and 3. 3 34 (2) The taxpayer's pro rata share of an amount 3 35 deemed distributed to shareholders which when added to 3 36 the salaries, wages, or other compensation for 3 37 services performed by all shareholders will equal ten 3 38 percent of the net income of the corporation computed 3 39 in accordance with section 422.35 and considering 3 40 items of income and expense which pass directly to the 3 41 shareholders under provisions of the Internal Revenue 3 42 Code before deduction of shareholder's salaries, 3 43 wages, or other compensation for services performed. 3 44 (3) Any cash or the value of any property 3 45 distributions made to the extent they are paid from 3 46 income upon which Iowa income tax has not been paid as 3 47 determined under rules of the director. 3 48 Sec. . Section 422.8, Code 1995, is amended by 3 49 adding the following new subsection: 3 50 NEW SUBSECTION. 6. If the resident or part year 4 1 resident is a shareholder of a corporation which has 4 2 in effect an election under subchapter S of the 4 3 Internal Revenue Code, subsections 1 and 3 do not 4 4 apply to any income taxes paid to another state or 4 5 foreign country on the income from the corporation 4 6 which has in effect an election under subchapter S of 4 7 the Internal Revenue Code. 4 8 Sec. . This division of this Act, being deemed 4 9 of immediate importance, takes effect upon enactment 4 10 and applies retroactively to January 1, 1995, for tax 4 11 years beginning on or after that date. 4 12 DIVISION III 4 13 MACHINERY AND EQUIPMENT 4 14 EXEMPTION AND REPLACEMENT FUNDS 4 15 Sec. . Section 427B.17, Code 1995, is amended 4 16 by striking the section and inserting in lieu thereof 4 17 the following: 4 18 427B.17 PROPERTY SUBJECT TO SPECIAL VALUATION. 4 19 1. Property defined in section 427A.1, subsection 4 20 1, paragraphs "e" and "j", shall be valued by the 4 21 local assessor as follows: 4 22 a. For the assessment year beginning January 1, 4 23 1995, at twenty-six percent of the net acquisition 4 24 cost. 4 25 b. For the assessment year beginning January 1, 4 26 1996, at twenty-two percent of the net acquisition 4 27 cost. 4 28 c. For the assessment year beginning January 1, 4 29 1997, at eighteen percent of the net acquisition cost. 4 30 d. For the assessment year beginning January 1, 4 31 1998, at fourteen percent of the net acquisition cost. 4 32 e. For the assessment year beginning January 1, 4 33 1999, at ten percent of the net acquisition cost. 4 34 f. For the assessment year beginning January 1, 4 35 2000, at six percent of the net acquisition cost. 4 36 g. For the assessment year beginning January 1, 4 37 2001, and all subsequent assessment years, at zero 4 38 percent of the net acquisition cost. 4 39 2. For purposes of this section: 4 40 a. Property assessed by the department of revenue 4 41 and finance pursuant to sections 428.24 to 428.29, or 4 42 chapters 433, 434, and 436 to 438 shall not receive 4 43 the benefits of this section. 4 44 Any electric power generating plant which operated 4 45 during the preceding assessment year at a net capacity 4 46 factor of more than twenty percent, shall not receive 4 47 the benefits of this section. For purposes of this 4 48 section, "electric power generating plant" means any 4 49 name plate rated electric power generating plant, in 4 50 which electric energy is produced from other forms of 5 1 energy, including all taxable land, buildings, and 5 2 equipment used in the production of such energy. "Net 5 3 capacity factor" means net actual generation divided 5 4 by the product of net maximum capacity times the 5 5 number of hours the unit was in the active state 5 6 during the assessment year. Upon commissioning, a 5 7 unit is in the active state until it is de- 5 8 commissioned. "Net actual generation" means net 5 9 electrical megawatt hours produced by the unit during 5 10 the preceding assessment year. "Net maximum capacity" 5 11 means the capacity the unit can sustain over a 5 12 specified period when not restricted by ambient 5 13 conditions or equipment deratings, minus the losses 5 14 associated with station service or auxiliary loads. 5 15 b. The net acquisition cost of property acquired 5 16 before January 1, 1995, which was owned or used by a 5 17 related person shall be the net acquisition cost of 5 18 the transferor of the property. 5 19 c. "Related person" means a person who owns or 5 20 controls the taxpayer's business and another business 5 21 entity from which property is acquired or leased or to 5 22 which property is sold or leased. Business entities 5 23 are owned or controlled by the same person if the same 5 24 person directly or indirectly owns or controls fifty 5 25 percent or more of the assets or any class of stock or 5 26 who directly or indirectly has an interest of fifty 5 27 percent or more in the ownership or profits. 5 28 d. "Net acquisition cost" means the acquired cost 5 29 of the property, including all foundations and 5 30 installation cost less any excess cost adjustment. 5 31 3. Property assessed pursuant to this section 5 32 shall not be eligible to receive a partial exemption 5 33 under sections 427B.1 to 427B.6. 5 34 4. The taxpayer's valuation of property defined in 5 35 section 427A.1, subsection 1, paragraphs "e" and "j", 5 36 and located in an urban renewal area for which an 5 37 urban renewal plan provides for the division of taxes 5 38 as provided in section 403.19 to pay the principal and 5 39 interest on loans, advances, bonds issued under the 5 40 authority of section 403.9, subsection 1, or 5 41 indebtedness incurred by a city or county to finance 5 42 an urban renewal project within the urban renewal 5 43 area, if such loans, advances, or bonds were issued or 5 44 indebtedness incurred, on or after January 1, 1982, 5 45 and on or before June 30, 1995, shall be limited to 5 46 thirty percent of the net acquisition cost of the 5 47 property. Such property located in an urban renewal 5 48 area shall not be valued pursuant to subsection 1 5 49 until the assessment year following the calendar year 5 50 in which the obligations created by any loans, 6 1 advances, bonds, or indebtedness payable from the 6 2 division of taxes as provided in section 403.19 have 6 3 been retired. The taxpayer's valuation for such 6 4 property shall then be the valuation specified in 6 5 subsection 1 for the applicable assessment year. If 6 6 the loans, advances, or bonds issued, or indebtedness 6 7 incurred between January 1, 1982, and June 30, 1995, 6 8 are refinanced or refunded after June 30, 1995, the 6 9 valuation of such property shall then be the valuation 6 10 specified in subsection 1 for the applicable 6 11 assessment year beginning with the assessment year 6 12 following the calendar year in which any of those 6 13 loans, advances, bonds, or other indebtedness are 6 14 refinanced or refunded after June 30, 1995. 6 15 5. For the purpose of dividing taxes under section 6 16 260E.4 or 260F.4, the employer's or business's 6 17 valuation of property defined in section 427A.1, 6 18 subsection 1, paragraphs "e" and "j", and used to fund 6 19 a new jobs training project which project's first 6 20 written agreement providing for a division of taxes as 6 21 provided in section 403.19, is approved on or before 6 22 June 30, 1995, shall be limited to thirty percent of 6 23 the net acquisition cost of the property. An 6 24 employer's or business's taxable property used to fund 6 25 a new jobs training project shall not be valued 6 26 pursuant to subsection 1 until the assessment year 6 27 following the calendar year in which the certificates 6 28 or other funding obligations have been retired or 6 29 escrowed. The taxpayer's valuation for such property 6 30 shall then be the valuation specified in subsection 1 6 31 for the applicable assessment year. If the 6 32 certificates issued, or other funding obligations 6 33 incurred, between January 1, 1982, and June 30, 1995, 6 34 are refinanced or refunded after June 30, 1995, the 6 35 valuation of such property shall then be the valuation 6 36 specified in subsection 1 for the applicable 6 37 assessment year beginning with the assessment year 6 38 following the calendar year in which those 6 39 certificates or other funding obligations are 6 40 refinanced or refunded after June 30, 1995. 6 41 Sec. . NEW SECTION. 427B.18 ASSESSOR AND 6 42 COUNTY AUDITOR DUTIES. 6 43 1. On or before July 1 of each year, the assessor 6 44 shall determine the taxpayer's valuation of the 6 45 property specified in section 427B.17 for that year 6 46 and the valuation of the property if the property were 6 47 valued, for assessment purposes, at thirty percent of 6 48 net acquisition cost and shall report the valuations 6 49 to the county auditor. 6 50 2. On or before July 1, 1996, and on or before 7 1 July 1 of each subsequent year, the county auditor 7 2 shall prepare a statement listing for each taxing 7 3 district in the county: 7 4 a. Beginning with the assessment year beginning 7 5 January 1, 1995, the difference between the assessed 7 6 valuation of property defined in section 427A.1, 7 7 subsection 1, paragraphs "e" and "j", and assessed 7 8 pursuant to section 427B.17 and the valuation of the 7 9 property if the property were valued, for assessment 7 10 purposes, at thirty percent of net acquisition cost. 7 11 b. The tax levy rate for each taxing district 7 12 levied against assessments made as of January 1 of the 7 13 previous year. 7 14 c. The industrial machinery, equipment and 7 15 computers tax replacement claim for each taxing 7 16 district, which is equal to the amount determined 7 17 pursuant to paragraph "a", multiplied by the tax rate 7 18 specified in paragraph "b". 7 19 3. The county auditor shall certify and forward 7 20 one copy of the statement to the department of revenue 7 21 and finance not later than July 1 of each year. 7 22 Sec. . NEW SECTION. 427B.19 REPLACEMENT. 7 23 Each county treasurer shall be paid an amount equal 7 24 to the following percentages of the industrial 7 25 machinery, equipment and computers tax replacement 7 26 claim for that county determined pursuant to section 7 27 427B.18, subsection 2: 7 28 1. For the fiscal year beginning July 1, 1996, 7 29 ninety percent. 7 30 2. For the fiscal year beginning July 1, 1997, 7 31 seventy-five percent. 7 32 3. For the fiscal year beginning July 1, 1998, 7 33 sixty percent. 7 34 4. For the fiscal year beginning July 1, 1999, 7 35 forty-five percent. 7 36 5. For the fiscal year beginning July 1, 2000, 7 37 thirty percent. 7 38 6. For the fiscal year beginning July 1, 2001, 7 39 twenty percent. 7 40 7. For the fiscal year beginning July 1, 2002, 7 41 twenty percent. 7 42 8. For the fiscal year beginning July 1, 2003, 7 43 twenty percent. 7 44 9. For the fiscal year beginning July 1, 2004, 7 45 fifteen percent. 7 46 10. For the fiscal year beginning July 1, 2005, 7 47 ten percent. 7 48 Sec. . NEW SECTION. 427B.19A FUND CREATED. 7 49 1. The industrial machinery, equipment and 7 50 computers property tax replacement fund is created. 8 1 There is appropriated annually from the general fund 8 2 of the state to the department of revenue and finance 8 3 to be credited to the industrial machinery, equipment 8 4 and computers property tax replacement fund, the 8 5 amounts specified in section 427B.19B. 8 6 2. Each county treasurer shall be paid from the 8 7 fund created in this section the amount calculated 8 8 pursuant to section 427B.19. The payment shall be 8 9 made in two equal installments on or before September 8 10 30 and March 30 of each year. The county treasurer 8 11 shall apportion the payment in the manner provided in 8 12 section 445.57. 8 13 3. If an amount appropriated in section 427B.19B 8 14 for a fiscal year is insufficient to pay all claims 8 15 according to the replacement schedule in section 8 16 427B.19, the director shall prorate the disbursements 8 17 from the fund to the county treasurers and shall 8 18 notify the county auditors of the pro rata percentage 8 19 on or before August 1. If an amount appropriated in 8 20 section 427B.19B for a fiscal year is in excess of the 8 21 amount necessary to pay all claims according to the 8 22 replacement schedule in section 427B.19, the director 8 23 shall prorate the disbursements from the fund to the 8 24 county treasurers, notwithstanding the amount 8 25 calculated pursuant to section 427B.19, and shall 8 26 notify the county auditors of the pro rata percentage 8 27 on or before August 1. 8 28 4. The replacement amount paid to each school 8 29 district shall be regarded as property tax for the 8 30 purposes of the school foundation property tax levy in 8 31 section 257.3 and the additional property tax levy in 8 32 section 257.4. The department of management shall 8 33 annually make the adjustments necessary to implement 8 34 this subsection. 8 35 Sec. . NEW SECTION. 427B.19B APPROPRIATION. 8 36 There is appropriated in each of the following 8 37 fiscal years from the general fund of the state to the 8 38 industrial machinery, equipment and computers property 8 39 tax replacement fund the following amounts: 8 40 1. For the fiscal year beginning July 1, 1996, 8 41 eight million, one hundred thousand dollars. 8 42 2. For the fiscal year beginning July 1, 1997, 8 43 fifteen million, two hundred thousand dollars. 8 44 3. For the fiscal year beginning July 1, 1998, 8 45 twenty-one million, one hundred thousand dollars. 8 46 4. For the fiscal year beginning July 1, 1999, 8 47 twenty-three million, four hundred thousand dollars. 8 48 5. For the fiscal year beginning July 1, 2000, 8 49 twenty-one million, one hundred thousand dollars. 8 50 6. For the fiscal year beginning July 1, 2001, 9 1 eighteen million, one hundred thousand dollars. 9 2 7. For the fiscal year beginning July 1, 2002, 9 3 twenty-four million dollars. 9 4 8. For the fiscal year beginning July 1, 2003, 9 5 twenty-five million, six hundred thousand dollars. 9 6 9. For the fiscal year beginning July 1, 2004, 9 7 twenty million, four hundred thousand dollars. 9 8 10. For the fiscal year beginning July 1, 2005, 9 9 fourteen million, five hundred thousand dollars. 9 10 Sec. . NEW SECTION. 427B.19C PHASEOUT OF TAX. 9 11 Effective on July 1, 2002, all property taxes on 9 12 property defined in section 427A.1, subsection 1, 9 13 paragraphs "e" and "j", are repealed. For assessment 9 14 years beginning on or after January 1, 2005, such 9 15 property shall not be listed or assessed. This 9 16 section shall prevail over all inconsistent statutes. 9 17 Sec. . NEW SECTION. 427B.19D GUARANTEE OF 9 18 STATE REPLACEMENT FUNDS. 9 19 If for any reason an appropriation specified in 9 20 section 427B.19B is not made or the appropriation made 9 21 is less than that specified in section 427B.19B for 9 22 the applicable fiscal year, the director of revenue 9 23 and finance shall compute for each county the 9 24 difference between the total of all replacement claims 9 25 for taxing districts within the county and the amount 9 26 paid to the county treasurer for disbursement to the 9 27 taxing districts in the county. The department shall 9 28 divide that difference by the consolidated tax levy 9 29 rate in each county computed for the fiscal year in 9 30 which the specified appropriation should have been 9 31 made and shall certify the amount of taxable value 9 32 necessary to raise the difference at that tax rate. 9 33 The department shall notify the local assessor of such 9 34 amount of taxable value. The assessor, for the 9 35 assessment year beginning January 1 preceding the 9 36 fiscal year for which the specified appropriation was 9 37 not made, shall reassess all taxable property 9 38 described in section 427B.17 in the county at a 9 39 percentage of net acquisition cost which will yield 9 40 such taxable value and the property shall be assessed 9 41 and taxed in such manner for taxes due and payable in 9 42 the following fiscal year in addition to being 9 43 assessed and taxed in the applicable manner under 9 44 section 427B.17. Property tax dollar amounts 9 45 certified pursuant to this section shall not be 9 46 considered property tax dollars certified for purposes 9 47 of the property tax limitation in chapter 444. 9 48 Sec. . NEW SECTION. 427B.19E INDUSTRIAL 9 49 MACHINERY, EQUIPMENT AND COMPUTERS RELIEF FUND. 9 50 1. The industrial machinery, equipment and 10 1 computers relief fund is created. There is 10 2 appropriated annually from the general fund of the 10 3 state to the department of revenue and finance to be 10 4 credited to the relief fund, the following amounts: 10 5 a. For the fiscal year beginning July 1, 1996, one 10 6 million, nine hundred thousand dollars. 10 7 b. For the fiscal year beginning July 1, 1997, one 10 8 million, eight hundred thousand dollars. 10 9 c. For the fiscal year beginning July 1, 1998, one 10 10 million, nine hundred thousand dollars. 10 11 Moneys in the fund at the end of a fiscal year 10 12 shall not revert to the general fund of the state, 10 13 notwithstanding section 8.33. 10 14 2. a. The purpose of the industrial machinery, 10 15 equipment and computers relief fund is to provide 10 16 funds to those taxing districts in which an increase 10 17 in property tax revenue has not been realized as a 10 18 result of the elimination of the property tax on 10 19 property assessed pursuant to section 427B.17. 10 20 Beginning with the fiscal year beginning July 1, 1996, 10 21 a taxing district may apply for funds under this 10 22 section by filing an application with the director of 10 23 the department of management not later than March 1 10 24 preceding the fiscal year in which the funds will be 10 25 distributed. The state appeal board shall approve, 10 26 disapprove, or reduce the amount of funds requested by 10 27 the taxing district. 10 28 b. On forms provided by the department of 10 29 management, the taxing district shall request an 10 30 amount not exceeding the product of the decrease in 10 31 assessed valuation for the fiscal year for which the 10 32 application is filed compared to the assessed 10 33 valuation in the previous fiscal year, as determined 10 34 pursuant to subsection 3, and the property tax rate 10 35 applied in the previous fiscal year, less any property 10 36 tax replacement funds received pursuant to section 10 37 427B.19A in the previous fiscal year. The taxing 10 38 district shall also submit with the application the 10 39 district's plan to improve its future budget position. 10 40 c. Claims approved by the state appeal board shall 10 41 be paid to the taxing district by October 1 following 10 42 submission of the application for funds. 10 43 3. To be eligible to receive funds under this 10 44 section, a taxing district must show that there has 10 45 been a decrease of more than three percent in the 10 46 assessed valuation for taxes payable in the fiscal 10 47 year for which the application is submitted compared 10 48 to the assessed valuation for taxes payable in the 10 49 previous fiscal year, which decrease is attributable 10 50 to the elimination of the property tax on industrial 11 1 machinery, equipment and computers pursuant to section 11 2 427B.17. The taxing district, to be eligible for 11 3 funds, must also show that the district has exhausted 11 4 all other lawful alternatives for improving the 11 5 district's budget position. 11 6 4. If the amount appropriated in this section is 11 7 insufficient to pay all applications approved, the 11 8 director of revenue and finance shall prorate the 11 9 disbursements from the relief fund and shall report 11 10 the amount of the shortfall to the director of the 11 11 department of management. By January 1 of the 11 12 following year, the director of the department of 11 13 management shall submit to the general assembly a plan 11 14 for the funding of approved applications that were not 11 15 fully funded in that fiscal year. 11 16 5. Amounts received pursuant to this section shall 11 17 not be considered property tax dollars certified for 11 18 purposes of the property tax limitation in chapter 11 19 444. 11 20 6. The department of revenue and finance and the 11 21 department of management shall adopt rules necessary 11 22 to implement this section. 11 23 DIVISION IV 11 24 INCOME TAX 11 25 Sec. . Section 422.7, Code 1995, is amended by 11 26 adding the following new subsection: 11 27 NEW SUBSECTION. 33. For a person who is disabled, 11 28 or is fifty-five years of age or older, or is the 11 29 surviving spouse of an individual or a survivor having 11 30 an insurable interest in an individual who would have 11 31 qualified for the exemption under this subsection for 11 32 the tax year, subtract, to the extent included, the 11 33 total amount of a governmental or other pension, 11 34 retirement pay, annuity, or other similar periodic 11 35 payment made under a plan maintained or contributed to 11 36 by an employer, or maintained or contributed to by a 11 37 self-employed person as an employer, up to a maximum 11 38 of three thousand dollars for a person who files a 11 39 separate state income tax return, and up to a maximum 11 40 of six thousand dollars for a husband and wife who 11 41 file a joint state income tax return. However, a 11 42 surviving spouse who is not disabled or fifty-five 11 43 years of age or older can only exclude the amount of 11 44 annuities or other similar periodic payments received 11 45 as a result of the death of the other spouse. 11 46 Sec. . Section 422.12, subsection 1, paragraph 11 47 c, Code 1995, is amended to read as follows: 11 48 c. For each dependent, an additionalfifteensixty 11 49 dollars. As used in this section, the term 11 50 "dependent" has the same meaning as provided by the 12 1 Internal Revenue Code. 12 2 Sec. . APPLICABILITY. This division of this 12 3 Act applies retroactively to January 1, 1995, for tax 12 4 years beginning on or after that date. 12 5 DIVISION V 12 6 CASH RESERVE AND SPECIAL FUNDS 12 7 Sec. . Section 8.56, subsection 1, Code 1995, 12 8 is amended to read as follows: 12 9 1. A cash reserve fund is created in the state 12 10 treasury. The cash reserve fund shall be separate 12 11 from the general fund of the state and shall not be 12 12 considered part of the general fund of the state 12 13 except in determining the cash position of the state 12 14 as provided in subsection 3. The moneys in the cash 12 15 reserve fund are not subject to section 8.33 and shall 12 16 not be transferred, used, obligated, appropriated, or 12 17 otherwise encumbered except as provided in this 12 18 section. Notwithstanding section 12C.7, subsection 2, 12 19 interest or earnings on moneys deposited in the cash 12 20 reserve fund shall be credited to the rebuild Iowa 12 21economic emergency fundinfrastructure fund created in 12 22 section 8.57. Moneys in the cash reserve fund may be 12 23 used for cash flow purposes provided that any moneys 12 24 so allocated are returned to the cash reserve fund by 12 25 the end of each fiscal year. However, the fund shall 12 26 be considered a special account for the purposes of 12 27 section 8.53. 12 28 Sec. . Section 8.56, subsection 4, paragraph b, 12 29 Code 1995, is amended to read as follows: 12 30 b. In addition to the requirements of paragraph 12 31 "a", an appropriation shall not be made from the cash 12 32 reserve fundwhich would cause the fund's balance to12 33be less than three percent of the adjusted revenue12 34estimate for the year for which the appropriation is12 35madeunless the bill or joint resolution making the 12 36 appropriation is approved by vote of at least three- 12 37 fifths of the members of both chambers of the general 12 38 assembly and is signed by the governor. 12 39 Sec. . Section 8.57, subsection 1, paragraph a, 12 40 Code 1995, is amended by striking the paragraph and 12 41 inserting in lieu thereof the following: 12 42 a. The cash reserve goal percentage for fiscal 12 43 years beginning on or after July 1, 1995, is five 12 44 percent of the adjusted revenue estimate. For each 12 45 fiscal year beginning on or after July 1, 1995, in 12 46 which the appropriation of the surplus existing in the 12 47 general fund of the state at the conclusion of the 12 48 prior fiscal year pursuant to paragraph "b" was not 12 49 sufficient for the cash reserve fund to reach the cash 12 50 reserve goal percentage for the current fiscal year, 13 1 there is appropriated from the general fund of the 13 2 state an amount to be determined as follows: 13 3 (1) If the balance of the cash reserve fund in the 13 4 current fiscal year is not more than four percent of 13 5 the adjusted revenue estimate for the current fiscal 13 6 year, the amount of the appropriation under this 13 7 lettered paragraph is one percent of the adjusted 13 8 revenue estimate for the current fiscal year. 13 9 (2) If the balance of the cash reserve fund in the 13 10 current fiscal year is more than four percent but less 13 11 than five percent of the adjusted revenue estimate for 13 12 that fiscal year, the amount of the appropriation 13 13 under this lettered paragraph is the amount necessary 13 14 for the cash reserve fund to reach five percent of the 13 15 adjusted revenue estimate for the current fiscal year. 13 16 (3) The moneys appropriated under this lettered 13 17 paragraph shall be credited in equal and proportionate 13 18 amounts in each quarter of the current fiscal year. 13 19 Sec. . Section 8.57, subsection 1, paragraph b, 13 20 Code 1995, is amended to read as follows: 13 21 b.Commencing June 30, 1993, theThe surplus 13 22 existing in the general fund of the state at the 13 23 conclusion of the fiscal year is appropriated for 13 24 distribution in the succeeding fiscal year as provided 13 25 inthis sectionsubsections 2 and 3. Moneys credited 13 26 to the cash reserve fund from the appropriation made 13 27 in this paragraph shall not exceed the amount 13 28 necessary for the cash reserve fund to reach the cash 13 29 reserve goal percentage for the succeeding fiscal 13 30 year. As used in this paragraph, "surplus" means the 13 31 excess of revenues and other financing sources over 13 32 expenditures and other financing uses for the general 13 33 fund of the state in a fiscal year. 13 34 Sec. . Section 8.57, subsection 5, Code 1995, 13 35 is amended to read as follows: 13 36 5. a. A rebuild Iowa infrastructureaccountfund 13 37 is created under the authority of the department of 13 38 management.MoneysThe fund shall consist of 13 39 appropriations made to the fund and transfers of 13 40 interest, earnings, and moneys from other funds as 13 41 provided by law. The fund shall be separate from the 13 42 general fund of the state and the balance in the fund 13 43 shall not be considered part of the balance of the 13 44 general fund of the state. However, the fund shall be 13 45 considered a special account for the purposes of 13 46 section 8.53, relating to generally accepted 13 47 accounting principles. 13 48 b. Notwithstanding section 8.33, moneys in the 13 49 infrastructure fund which remain unencumbered or 13 50 unobligated at the end of a fiscal year shall not 14 1 revert to any fund but shall remain available for 14 2 infrastructure expenditures in the succeeding fiscal 14 3 year. Notwithstanding section 12C.7, subsection 2, 14 4 interest or earnings on moneys in the infrastructure 14 5 fund shall be credited to the infrastructure fund. 14 6 c. Moneys in theaccountfund in a fiscal year 14 7 shall be used as directed by the general assembly for 14 8 public infrastructure-related expenditures. 14 9 d. The general assembly may provide that all or 14 10 part of the moneys deposited in the GAAP deficit 14 11 reduction account created in this section shall be 14 12 transferred to the infrastructureaccountfund in lieu 14 13 of appropriation of the moneys to the Iowa economic 14 14 emergency fund. 14 15 Sec. . TRANSFER TO INFRASTRUCTURE FUND. Moneys 14 16 in the Iowa economic emergency fund, created in 14 17 section 8.55, at the conclusion of the fiscal year 14 18 beginning July 1, 1994, shall be transferred to the 14 19 rebuild Iowa infrastructure account. 14 20 Sec. . EFFECTIVE DATE. This division of this 14 21 Act, being deemed of immediate importance, takes 14 22 effect upon enactment."" 14 23 #7. Page 22, lines 21 and 22, by striking the 14 24 words ", providing an appropriation," and inserting 14 25 the following: "; deductions for pension income, 14 26 treatment of income from subchapter S corporations, 14 27 and increased dependent credit for state individual 14 28 income tax purposes; machinery and equipment phase-in 14 29 exemption and reimbursement for property tax purposes; 14 30 relating to the cash reserve and an infrastructure 14 31 fund; providing appropriations,". 14 32 #8. By renumbering and correcting internal 14 33 references as necessary. 14 34 14 35 14 36 14 37 HALVORSON of Clayton 14 38 14 39 14 40 14 41 RANTS of Woodbury 14 42 14 43 14 44 14 45 GIPP of Winneshiek 14 46 14 47 14 48 14 49 COON of Warren 14 50 15 1 15 2 15 3 LARSON of Linn 15 4 15 5 15 6 15 7 VEENSTRA of Sioux 15 8 15 9 15 10 15 11 THOMSON of Linn 15 12 15 13 15 14 15 15 NUTT of Woodbury 15 16 15 17 15 18 15 19 SALTON of Palo Alto 15 20 15 21 15 22 15 23 HUSEMAN of Cherokee 15 24 15 25 15 26 15 27 SUKUP of Franklin 15 28 15 29 15 30 15 31 BODDICKER of Cedar 15 32 15 33 15 34 15 35 MAIN of Jefferson 15 36 15 37 15 38 15 39 HOUSER of Pottawattamie 15 40 15 41 15 42 15 43 BOGGESS of Taylor 15 44 15 45 15 46 15 47 CARROLL of Poweshiek 15 48 15 49 15 50 16 1 MILLAGE of Scott 16 2 16 3 16 4 16 5 WEIDMAN of Cass 16 6 16 7 16 8 16 9 HAMMITT of Harrison 16 10 16 11 16 12 16 13 GRIES of Crawford 16 14 16 15 16 16 16 17 ARNOLD of Lucas 16 18 16 19 16 20 16 21 BRAUNS of Muscatine 16 22 16 23 16 24 16 25 DRAKE of Pottawattamie 16 26 16 27 16 28 16 29 HARRISON of Scott 16 30 16 31 16 32 16 33 WELTER of Jones 16 34 16 35 16 36 16 37 MARTIN of Scott 16 38 16 39 16 40 16 41 HANSON of Black Hawk 16 42 16 43 16 44 16 45 CORNELIUS of Jackson 16 46 16 47 16 48 16 49 TYRRELL of Iowa 16 50 17 1 17 2 17 3 MEYER of Sac 17 4 17 5 17 6 17 7 GRUBBS of Scott 17 8 17 9 17 10 17 11 HURLEY of Fayette 17 12 17 13 17 14 17 15 DAGGETT of Union 17 16 17 17 17 18 17 19 EDDIE of Buena Vista 17 20 17 21 17 22 17 23 GREINER of Washington 17 24 17 25 17 26 17 27 BRANSTAD of Winnebago 17 28 17 29 17 30 17 31 SIEGRIST of Pottawattamie 17 32 17 33 17 34 17 35 LAMBERTI of Polk 17 36 17 37 17 38 17 39 HEATON of Henry 17 40 17 41 17 42 17 43 RENKEN of Grundy 17 44 17 45 17 46 17 47 CORMACK of Webster 17 48 17 49 17 50 18 1 VANDE HOEF of Osceola 18 2 18 3 18 4 18 5 VAN FOSSEN of Scott 18 6 18 7 18 8 18 9 GARMAN of Story 18 10 HF 336.505 76 18 11 jp/jw
Text: H03404 Text: H03406 Text: H03400 - H03499 Text: H Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: House Bills and Amendments (76th General Assembly)
© 1996 Cornell College and League of Women Voters of Iowa
Comments? webmaster@legis.iowa.gov.
Last update: Thu Feb 8 16:38:58 CST 1996
URL: /DOCS/GA/76GA/Legislation/H/03400/H03405/950322.html
jhf