Text: HF02110 Text: HF02112 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I 1 2 INCOME TAX INDEXATION 1 3 Section 1. Section 422.4, subsection 1, paragraph a, Code 1 4 1995, is amended to read as follows: 1 5 a. "Annual inflation factor" means an index, expressed as 1 6 a percentage, determined by the department by October 15 of 1 7 the calendar year preceding the calendar year for which the 1 8 factor is determined, which reflects the purchasing power of 1 9 the dollar as a result of inflation during the fiscal year 1 10 ending in the calendar year preceding the calendar year for 1 11 which the factor is determined. In determining the annual 1 12 inflation factor, the department shall use the annual percent 1 13 change, but not less than zero percent, in theimplicit price1 14deflator for the gross national productgross domestic product 1 15 price deflator computed for the second quarter of the calendar 1 16 year by the bureau of economic analysis of the United States 1 17 department of commerce and shall addone-halfall of that 1 18 percent change to one hundred percent. The annual inflation 1 19 factor and the cumulative inflation factor shall each be 1 20 expressed as a percentage rounded to the nearest one-tenth of 1 21 one percent. The annual inflation factor shall not be less 1 22 than one hundred percent. 1 23 Sec. 2. Section 422.4, subsection 2, paragraph a, Code 1 24 1995, is amended to read as follows: 1 25 a. "Annual standard deduction factor" means an index, 1 26 expressed as a percentage, determined by the department by 1 27 October 15 of the calendar year preceding the calendar year 1 28 for which the factor is determined, which reflects the 1 29 purchasing power of the dollar as a result of inflation during 1 30 the fiscal year ending in the calendar year preceding the 1 31 calendar year for which the factor is determined. In 1 32 determining the annual standard deduction factor, the 1 33 department shall use the annual percent change, but not less 1 34 than zero percent, in theimplicit price deflator for the1 35gross national productgross domestic product price deflator 2 1 computed for the second quarter of the calendar year by the 2 2 bureau of economic analysis of the United States department of 2 3 commerce and shall addone-halfall of that percent change to 2 4 one hundred percent. The annual standard deduction factor and 2 5 the cumulative standard deduction factor shall each be 2 6 expressed as a percentage rounded to the nearest one-tenth of 2 7 one percent. The annual standard deduction factor shall not 2 8 be less than one hundred percent. 2 9 Sec. 3. This division of this Act, being deemed of 2 10 immediate importance, takes effect upon enactment and applies 2 11 to the computation of the annual inflation factor and annual 2 12 standard deduction factor for calendar years beginning on or 2 13 after January 1, 1996. The department of revenue and finance 2 14 shall adjust the annual inflation factor and annual standard 2 15 deduction factor previously computed for the 1996 calendar 2 16 year to reflect the change made in the computation of those 2 17 factors in this Act. 2 18 DIVISION II 2 19 INHERITANCE TAXATION 2 20 Sec. 4. Section 450.7, subsection 1, unnumbered paragraph 2 21 1, Code Supplement 1995, is amended to read as follows: 2 22 Except for the share of the estate passing to the surviving 2 23 spouse, father or mother, each son and daughter, including 2 24 legally adopted sons and daughters or biological sons and 2 25 daughters, stepchildren, and grandchildren, the tax is a 2 26 charge against and a lien upon the estate subject to tax under 2 27 this chapter, and all property of the estate or owned by the 2 28 decedent from the death of the decedent until paid, subject to 2 29 the following limitation: 2 30 Sec. 5. Section 450.9, subsection 1, Code 1995, is amended 2 31 to read as follows: 2 32 1. Surviving spouse, father or mother, son or daughter, 2 33 including legally adopted sons and daughters or biological 2 34 sons and daughters, stepchildren, or grandchild, the entire 2 35 amount of property, interest in property, and income. 3 1 Sec. 6. Section 450.9, subsections 2 and 3, Code 1995, are 3 2 amended by striking the subsections. 3 3 Sec. 7. Section 450.10, subsection 1, unnumbered paragraph 3 4 1, Code 1995, is amended to read as follows: 3 5 When the property, interest, or income passes tothe father3 6or mother, or to a child ora lineal descendant of the 3 7 decedent, grantor, donor, or vendor, including a legally3 8adopted child or biological child entitled to inherit under3 9the laws of this statenot included in subsection 7, the tax 3 10 imposed shall be on the individual share so passing in excess 3 11 of the exemptions allowed as follows: 3 12 Sec. 8. Section 450.10, subsection 2, unnumbered paragraph 3 13 1, Code 1995, is amended to read as follows: 3 14 When the property or any interestthereinin property, or 3 15 incometherefromfrom property taxable under the provisions of 3 16 this chapter passes to the brother or sister, son-in-law, or 3 17 daughter-in-law,or step-children,the rate of tax imposed on 3 18 the individual share so passing shall be as follows: 3 19 Sec. 9. Section 450.10, subsection 7, Code 1995, is 3 20 amended to read as follows: 3 21 7. Property, interest in property, or income passing to 3 22 the surviving spouse, father or mother, son or daughter, 3 23 including legally adopted sons and daughters or biological 3 24 sons and daughters, stepchild, or grandchild, is not taxable 3 25 under this section. 3 26 Sec. 10. This division of this Act applies to estates of 3 27 decedents dying on or after July 1, 1996. 3 28 DIVISION III 3 29 TAXPAYER RELIEF ACCOUNT 3 30 Sec. 11. NEW SECTION. 426C.1 TAXPAYER RELIEF ACCOUNT. 3 31 1. A taxpayer relief account is created in the state 3 32 treasury under the authority of the department of management. 3 33 The account shall be separate from the general fund of the 3 34 state and shall not be considered part of the general fund of 3 35 the state except in determining the cash position of the state 4 1 for payment of state obligations. The moneys in the account 4 2 are not subject to the provisions of section 8.33 and shall 4 3 not be transferred, used, obligated, appropriated, or 4 4 otherwise encumbered except as provided in this section. 4 5 Moneys in the account may be used for cash flow purposes 4 6 provided that any moneys so allocated are returned to the fund 4 7 by the end of each fiscal year. However, the fund shall be 4 8 considered a special account for the purposes of section 8.53, 4 9 relating to elimination of any GAAP deficit. Moneys in the 4 10 taxpayer relief account shall be used as appropriated by the 4 11 general assembly for tax relief, including but not limited to 4 12 reduction of school and other property taxes. 4 13 2. Notwithstanding section 12C.7, subsection 2, interest 4 14 or earnings on moneys deposited in the taxpayer relief account 4 15 shall be credited to the account. 4 16 3. There is appropriated to the tax relief account for 4 17 each fiscal year from the general fund of the state, one 4 18 hundred million dollars. 4 19 EXPLANATION 4 20 Division I - Under present law the tax brackets and 4 21 standard deduction for the state individual income tax are 4 22 adjusted by an inflation factor that uses 50 percent of the 4 23 change in the implicit price deflator for the gross national 4 24 product. The bill increases this to 100 percent of the change 4 25 in the gross domestic product price deflator. The bill 4 26 changes the reference from the gross national product price 4 27 deflator to the gross domestic product price deflator since 4 28 the former no longer exists. This division of the bill 4 29 applies retroactively to tax years beginning on or after 4 30 January 1, 1996. 4 31 Division II - This division exempts from the state 4 32 inheritance tax property, interest in property, and income 4 33 passing to parents, natural and adopted children, 4 34 stepchildren, and grandchildren. 4 35 The division of this bill applies to estates of decedents 5 1 dying on or after July 1, 1996. 5 2 Division III - This division creates a special taxpayer 5 3 relief account in the state treasury to be used solely as 5 4 appropriated by the general assembly for providing tax relief. 5 5 The tax relief may take the form of a reduction in state or 5 6 local taxation. There is also appropriated $100 million to 5 7 the account for the fiscal year beginning July 1, 1996, and 5 8 for each subsequent fiscal year. 5 9 LSB 3629HV 76 5 10 mg/cf/24
Text: HF02110 Text: HF02112 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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