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Text: HF02110                           Text: HF02112
Text: HF02100 - HF02199                 Text: HF Index
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House File 2111

Partial Bill History

Bill Text

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 the implicit price
  1 14 deflator for the gross national product gross 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 add one-half all 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 the implicit price deflator for the
  1 35 gross national product gross 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 add one-half all 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 to the father
  3  6 or mother, or to a child or a lineal descendant of the
  3  7 decedent, grantor, donor, or vendor, including a legally
  3  8 adopted child or biological child entitled to inherit under
  3  9 the laws of this state not 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 interest therein in property, or
  3 15 income therefrom from 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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