Text: HSB00318 Text: HSB00320 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.32, subsection 2, Code 1995, is 1 2 amended to read as follows: 1 3 2. "Business income" means income arising from 1 4 transactions and activity in the regular course of the 1 5 taxpayer's trade or business;and includesincome from 1 6 tangible and intangible property if the acquisition, 1 7 management, and disposition of the property constitute 1 8 integral parts of the taxpayer's regular trade or business 1 9 operations; gain or loss resulting from the sale, exchange, or 1 10 other disposition of real property or of tangible or 1 11 intangible personal property, if the property while owned by 1 12 the taxpayer was operationally related to the taxpayer's trade 1 13 or business carried on in Iowa; gain or loss resulting from 1 14 the sale, exchange, or other disposition of stock in another 1 15 corporation if the activities of the other corporation were 1 16 operationally related to the taxpayer's trade or business 1 17 carried on in Iowa while the stock was owned by the taxpayer; 1 18 and all other income that may be treated as apportionable 1 19 business income under the Constitution of the United States. 1 20 A taxpayer may have more than one regular trade or business in 1 21 determining whether income is business income. 1 22 The filing of an Iowa income tax return on a combined 1 23 report basis is neither allowed nor required by this 1 24 subsection. 1 25 Sec. 2. To the extent a taxpayer treated income as 1 26 business income according to the definition amended in section 1 27 1 of this Act or treated income as nonbusiness income 1 28 consistent with the decision in Phillips Petroleum Company v. 1 29 Iowa Department of Revenue and Finance, 511 N.W.2d 608(Iowa 1 30 1993) on a return filed prior to the effective date of this 1 31 Act for tax years beginning prior to January 1, 1995, the 1 32 director of revenue and finance shall not challenge such 1 33 treatment. 1 34 Sec. 3. This Act, being deemed of immediate importance, 1 35 takes effect upon enactment and applies retroactively to 2 1 January 1, 1995, for tax years beginning on or after that 2 2 date. 2 3 EXPLANATION 2 4 The bill expands the definition of business income for 2 5 state corporate tax purposes in response to a court case lost 2 6 by the state. Included as business income are the gains or 2 7 losses from the sale of property which while owned by the 2 8 taxpayer was operationally related to the taxpayer's trade or 2 9 business carried on within the state. 2 10 The bill also directs the director of revenue and finance 2 11 to not challenge the way a taxpayer treated such gains or 2 12 losses if a return was filed before the effective date of this 2 13 bill for a tax year beginning prior to January 1, 1995. 2 14 The bill takes effect upon enactment and applies retro- 2 15 actively to January 1, 1995, for tax years beginning on or 2 16 after that date. 2 17 LSB 2295HC 76 2 18 mg/jw/5
Text: HSB00318 Text: HSB00320 Text: HSB00300 - HSB00399 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
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