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PAG LIN 1 1 Amend Senate File 2449, as amended, passed, and 1 2 reprinted by the Senate, as follows: 1 3 #1. By striking everything after the enacting 1 4 clause and inserting the following: 1 5 "DIVISION I 1 6 INCOME TAX INDEXATION 1 7 Section 1. Section 422.4, subsection 1, paragraphs 1 8 a and d, Code 1995, are amended to read as follows: 1 9 a. "Annual inflation factor" means an index, 1 10 expressed as a percentage, determined by the 1 11 department by October 15 of the calendar year 1 12 preceding the calendar year for which the factor is 1 13 determined, which reflects the purchasing power of the 1 14 dollar as a result of inflation during the fiscal year 1 15 ending in the calendar year preceding the calendar 1 16 year for which the factor is determined. In 1 17 determining the annual inflation factor, the 1 18 department shall use the annual percent change, but 1 19 not less than zero percent, in theimplicit price1 20deflator for the gross national productgross domestic 1 21 product price deflator computed for the second quarter 1 22 of the calendar year by the bureau of economic 1 23 analysis of the United States department of commerce 1 24 and shall addone-halfall of that percent change to 1 25 one hundred percent. The annual inflation factor and 1 26 the cumulative inflation factor shall each be 1 27 expressed as a percentage rounded to the nearest one- 1 28 tenth of one percent. The annual inflation factor 1 29 shall not be less than one hundred percent. 1 30 d. Notwithstanding the computation of the annual 1 31 inflation factor under paragraph "a", the annual 1 32 inflation factor is one hundred percent for any 1 33 calendar year in which the unobligated state general 1 34 fund balance on June 30 as certified by the director 1 35 of the department of management by October 10, is less 1 36 than sixty million dollars. Notwithstanding section 1 37 8.58, in determining the unobligated state general 1 38 fund balance on June 30, unobligated moneys in the 1 39 cash reserve fund and Iowa economic emergency fund on 1 40 June 30 shall be counted as part of the unobligated 1 41 state general fund balance for purposes of this 1 42 paragraph. 1 43 Sec. 2. Section 422.4, subsection 2, paragraph a, 1 44 Code 1995, is amended to read as follows: 1 45 a. "Annual standard deduction factor" means an 1 46 index, expressed as a percentage, determined by the 1 47 department by October 15 of the calendar year 1 48 preceding the calendar year for which the factor is 1 49 determined, which reflects the purchasing power of the 1 50 dollar as a result of inflation during the fiscal year 2 1 ending in the calendar year preceding the calendar 2 2 year for which the factor is determined. In 2 3 determining the annual standard deduction factor, the 2 4 department shall use the annual percent change, but 2 5 not less than zero percent, in theimplicit price2 6deflator for the gross national productgross domestic 2 7 product price deflator computed for the second quarter 2 8 of the calendar year by the bureau of economic 2 9 analysis of the United States department of commerce 2 10 and shall addone-halfall of that percent change to 2 11 one hundred percent. The annual standard deduction 2 12 factor and the cumulative standard deduction factor 2 13 shall each be expressed as a percentage rounded to the 2 14 nearest one-tenth of one percent. The annual standard 2 15 deduction factor shall not be less than one hundred 2 16 percent. 2 17 Sec. 3. This division of this Act, being deemed of 2 18 immediate importance, takes effect upon enactment and 2 19 applies to the computation of the annual inflation 2 20 factor and annual standard deduction factor for 2 21 calendar years beginning on or after January 1, 1996. 2 22 The department of revenue and finance shall adjust the 2 23 annual inflation factor and annual standard deduction 2 24 factor previously computed for the 1996 calendar year 2 25 to reflect the change made in the computation of those 2 26 factors in this Act. 2 27 DIVISION II 2 28 INHERITANCE TAXATION 2 29 Sec. 4. Section 450.7, subsection 1, unnumbered 2 30 paragraph 1, Code Supplement 1995, is amended to read 2 31 as follows: 2 32 Except for the share of the estate passing to the 2 33 surviving spouse, father or mother, each son and 2 34 daughter, including legally adopted sons and daughters 2 35 or biological sons and daughters, stepchildren, and 2 36 grandchildren, the tax is a charge against and a lien 2 37 upon the estate subject to tax under this chapter, and 2 38 all property of the estate or owned by the decedent 2 39 from the death of the decedent until paid, subject to 2 40 the following limitation: 2 41 Sec. 5. Section 450.9, subsection 1, Code 1995, is 2 42 amended to read as follows: 2 43 1. Surviving spouse, father or mother, son or 2 44 daughter, including legally adopted sons and daughters 2 45 or biological sons and daughters, stepchildren, or 2 46 grandchild, the entire amount of property, interest in 2 47 property, and income. 2 48 Sec. 6. Section 450.9, subsections 2 and 3, Code 2 49 1995, are amended by striking the subsections. 2 50 Sec. 7. Section 450.10, subsection 1, unnumbered 3 1 paragraph 1, Code 1995, is amended to read as follows: 3 2 When the property, interest, or income passes to 3 3the father or mother, or to a child ora lineal 3 4 descendant of the decedent, grantor, donor, or vendor,3 5including a legally adopted child or biological child3 6entitled to inherit under the laws of this statenot 3 7 included in subsection 7, the tax imposed shall be on 3 8 the individual share so passing in excess of the 3 9 exemptions allowed as follows: 3 10 Sec. 8. Section 450.10, subsection 2, unnumbered 3 11 paragraph 1, Code 1995, is amended to read as follows: 3 12 When the property or any interestthereinin 3 13 property, or incometherefromfrom property taxable 3 14 under the provisions of this chapter passes to the 3 15 brother or sister, son-in-law, or daughter-in-law,or3 16step-children,the rate of tax imposed on the 3 17 individual share so passing shall be as follows: 3 18 Sec. 9. Section 450.10, subsection 7, Code 1995, 3 19 is amended to read as follows: 3 20 7. Property, interest in property, or income 3 21 passing to the surviving spouse, father or mother, son 3 22 or daughter, including legally adopted sons and 3 23 daughters or biological sons and daughters, stepchild, 3 24 or grandchild, is not taxable under this section. 3 25 Sec. 10. This division of this Act applies to 3 26 estates of decedents dying on or after July 1, 1996. 3 27 DIVISION III 3 28 SCHOOL PROPERTY TAX 3 29 Sec. 11. Section 257.3, subsection 1, unnumbered 3 30 paragraph 1, Code Supplement 1995, is amended to read 3 31 as follows: 3 32Except as provided in subsections 2 and 3, aA 3 33 school district shall cause to be levied each year, 3 34 for the school general fund, a foundation property tax 3 35 equal tofivefour dollars andfortyfifteen cents per 3 36 thousand dollars of assessed valuation on all taxable 3 37 property in the district. The county auditor shall 3 38 spread the foundation levy over all taxable property 3 39 in the district. 3 40 Sec. 12. Section 257.3, subsections 2 and 3, Code 3 41 Supplement 1995, are amended by striking the 3 42 subsections. 3 43 Sec. 13. Section 257.3, subsection 4, Code 3 44 Supplement 1995, is amended to read as follows: 3 45 4. RAILWAY CORPORATIONS. For purposes of section 3 46 257.1, the "amount per pupil of foundation property 3 47 tax" does not include the tax levied under subsection 3 48 1, 2, or 3on the property of a railway corporation, 3 49 or on its trustee if the corporation has been declared 3 50 bankrupt or is in bankruptcy proceedings. 4 1 Sec. 14. Section 275.55, unnumbered paragraph 4, 4 2 Code 1995, is amended by striking the unnumbered 4 3 paragraph. 4 4 Sec. 15. Section 425A.3, subsection 1, Code 1995, 4 5 is amended to read as follows: 4 6 1. The family farm tax credit fund shall be 4 7 apportioned each year in the manner provided in this 4 8 chapter so as to give a credit against the tax on each 4 9 eligible tract of agricultural land within the several 4 10 school districts of the state in which the levy for 4 11 the general school fund exceedsfivefour dollars and 4 12fortyfifteen cents per thousand dollars of assessed 4 13 value. The amount of the credit on each eligible 4 14 tract of agricultural land shall be the amount the tax 4 15 levied for the general school fund exceeds the amount 4 16 of tax which would be levied on each eligible tract of 4 17 agricultural land were the levy for the general school 4 18 fundfivefour dollars andfortyfifteen cents per 4 19 thousand dollars of assessed value for the previous 4 20 year. However, in the case of a deficiency in the 4 21 family farm tax credit fund to pay the credits in 4 22 full, the credit on each eligible tract of 4 23 agricultural land in the state shall be proportionate 4 24 and applied as provided in this chapter. 4 25 Sec. 16. Section 425A.5, Code 1995, is amended to 4 26 read as follows: 4 27 425A.5 COMPUTATION BY COUNTY AUDITOR. 4 28 The family farm tax credit allowed each year shall 4 29 be computed as follows: On or before March 1, the 4 30 county auditor shall list by school districts all 4 31 tracts of agricultural land which are entitled to 4 32 credit, the taxable value for the previous year, the 4 33 budget from each school district for the previous 4 34 year, and the tax rate determined for the general fund 4 35 of the school district in the manner prescribed in 4 36 section 444.3 for the previous year, and if the tax 4 37 rate is in excess offivefour dollars andforty4 38 fifteen cents per thousand dollars of assessed value, 4 39 the auditor shall multiply the tax levy which is in 4 40 excess offivefour dollars andfortyfifteen cents 4 41 per thousand dollars of assessed value by the total 4 42 taxable value of the agricultural land entitled to 4 43 credit in the school district, and on or before March 4 44 1, certify the total amount of credit and the total 4 45 number of acres entitled to the credit to the 4 46 department of revenue and finance. 4 47 Sec. 17. Section 426.3, Code 1995, is amended to 4 48 read as follows: 4 49 426.3 WHERE CREDIT GIVEN. 4 50 The agricultural land credit fund shall be 5 1 apportioned each year in the mannerhereinafter5 2 provided in this chapter so as to give a credit 5 3 against the tax on each tract of agricultural lands 5 4 within the several school districts of the state in 5 5 which the levy for the general school fund exceeds 5 6fivefour dollars andfortyfifteen cents per thousand 5 7 dollars of assessed value; the amount ofsuchcredit 5 8 on each tract ofsuchlands shall be the amount the 5 9 tax levied for the general school fund exceeds the 5 10 amount of tax which would be levied onsaidthe tract 5 11 ofsuchlands were the levy for the general school 5 12 fundfivefour dollars andfortyfifteen cents per 5 13 thousand dollars of assessed value for the previous 5 14 year, except in the case of a deficiency in the 5 15 agricultural land credits fund to paysaidcredits in 5 16 full, in which case the credit on each eligible tract 5 17 ofsuchlands in the state shall be proportionate and 5 18 shall be applied ashereinafterprovided in this 5 19 chapter. 5 20 Sec. 18. Section 426.6, unnumbered paragraph 1, 5 21 Code 1995, is amended to read as follows: 5 22 The agricultural land tax credit allowed each year 5 23 shall be computed as follows: On or before the first 5 24 of June the county auditor shall list by school 5 25 districts all tracts of agricultural lands which they 5 26 are entitled to credit, together with the taxable 5 27 value for the previous year, together with the budget 5 28 from each school district for the previous year, and 5 29 the tax rate determined for the general fund of the 5 30 district in the manner prescribed in section 444.3 for 5 31 the previous year, and ifsuchthe tax rate is in 5 32 excess offivefour dollars andfortyfifteen cents 5 33 per thousand dollars of assessed value, the auditor 5 34 shall multiply the tax levy which is in excess offive5 35 four dollars andfortyfifteen cents per thousand 5 36 dollars of assessed value by the total taxable value 5 37 of the agricultural lands entitled to credit in the 5 38 district, and on or before the first of June certify 5 39 the amount to the department of revenue and finance. 5 40 Sec. 19. 5 41 1. Sections 11 through 14 of this division of this 5 42 Act, being deemed of immediate importance, take effect 5 43 upon enactment, and apply to the computation of school 5 44 foundation property taxes payable during school budget 5 45 years beginning on or after July 1, 1996. 5 46 2. Sections 15 through 18 of this division of this 5 47 Act take effect January 1, 1997, and apply to the 5 48 computation of family farm tax credits and 5 49 agricultural land tax credits granted for property 5 50 taxes payable in school budget years beginning on or 6 1 after July 1, 1997." 6 2 #2. Title page, by striking lines 1 through 17 and 6 3 inserting the following: "An Act relating to taxation 6 4 within the state by changing the computation of the 6 5 inflation factors for the tax brackets and standard 6 6 deduction of the state individual income tax, 6 7 exemptions from the state inheritance tax, and 6 8 reducing the school district uniform levy for purposes 6 9 of providing tax relief and providing effective and 6 10 retroactive and other applicability date provisions." 6 11 6 12 6 13 6 14 HALVORSON of Clayton 6 15 SF 2449.705 76 6 16 mg/sc
Text: H05522 Text: H05524 Text: H05500 - H05599 Text: H Index Bills and Amendments: General Index Bill History: General Index
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