Text: HF02104 Text: HF02106 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.73, Code 1995, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 3. Notwithstanding subsection 2, a claim 1 4 for refund of individual income tax paid for any tax year 1 5 beginning on or after January 1, 1985, and before January 1, 1 6 1989, is considered timely if filed with the department on or 1 7 before July 1, 1996, if the taxpayer's claim is the result of 1 8 the unconstitutional taxation of federal pension benefits 1 9 based upon the decision in Davis v. Michigan Department of 1 10 Treasury, 489 U.S. 803, 109 S. Ct. 1500 (1989). 1 11 A taxpayer entitled to a refund of tax paid under this 1 12 subsection shall receive an amount equal to one hundred 1 13 percent of the refund without interest, less five dollars to 1 14 be retained by the department to defray costs of notification 1 15 and the cost of processing the refund claim. The claim for 1 16 refund shall be filed separate from any income tax return and 1 17 shall not be allowed as a credit for income taxes owed. A 1 18 claim shall be filed between the effective date of this 1 19 subsection and July 1, 1996. An extension for filing shall 1 20 not be allowed and claims disallowed on the basis of 1 21 timeliness shall not be allowed upon appeal to any other state 1 22 agency notwithstanding any other provision of law. 1 23 The claim for refund shall be made on claim forms to be 1 24 made available by the department. In order for a taxpayer to 1 25 have a valid refund claim, the taxpayer must supply legible 1 26 copies of documents the director deems necessary to show 1 27 entitlement to the refund, including but not limited to income 1 28 tax forms and W-2P forms, which will establish the state 1 29 income tax that was paid on the federal pension benefits for 1 30 the tax years in question. The burden of proof is on the 1 31 taxpayer to show that the claim for refund is valid. Estates 1 32 are not entitled to file a claim for refund under this 1 33 subsection. However, if a taxpayer has filed a claim under 1 34 this subsection and subsequently dies before receipt of the 1 35 refund, the taxpayer's estate is entitled to receipt of any 2 1 valid refund claim. 2 2 The department shall make a reasonable attempt to notify 2 3 individuals who are entitled to a refund under this 2 4 subsection. 2 5 Sec. 2. This Act, being deemed of immediate importance, 2 6 takes effect upon enactment. 2 7 EXPLANATION 2 8 A recent Iowa supreme court decision held that retired 2 9 federal employees could retroactively claim a refund of state 2 10 individual income taxes unlawfully imposed on their pensions 2 11 if the claim was timely filed. This bill provides that a 2 12 claim filed by July 1, 1996, is timely filed for taxes imposed 2 13 for the 1985, 1986, 1987, and 1988 tax years. The taxpayer is 2 14 entitled to 100 percent of the refund without interest. To 2 15 claim a refund, the taxpayer must submit adequate evidence, as 2 16 designated by the director of revenue and finance, showing the 2 17 taxpayer's entitlement to the refund. The claim is to be 2 18 filed separate from any state income tax return and no credit 2 19 for income taxes owed is allowed. The department shall 2 20 attempt to notify individuals who are entitled to a refund. 2 21 The bill takes effect upon enactment. 2 22 LSB 3533HH 76 2 23 mg/sc/14.2
Text: HF02104 Text: HF02106 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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