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
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: Mon Mar 4 09:34:06 CST 1996
URL: /DOCS/GA/76GA/Legislation/HF/02100/HF02105/960125.html
jhf