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PAG LIN
1 1 Section 1. Section 422.60, subsection 2, Code Supplement
1 2 1995, is amended by adding the following new unnumbered
1 3 paragraph after unnumbered paragraph 1:
1 4 NEW UNNUMBERED PARAGRAPH. A credit union incorporated or
1 5 authorized to do business under chapter 533 whose common bond
1 6 of association pursuant to section 533.5 is residence within
1 7 specified geographic boundaries is not subject to the state
1 8 alternative minimum tax.
1 9 Sec. 2. Section 422.61, subsection 1, Code Supplement
1 10 1995, is amended to read as follows:
1 11 1. "Financial institution" means a state bank as defined
1 12 in section 524.103, subsection 33, a state bank chartered
1 13 under the laws of any other state, a national banking
1 14 association, a trust company, a federally chartered savings
1 15 and loan association, an out-of-state state chartered savings
1 16 bank, a financial institution chartered by the federal home
1 17 loan bank board, a non-Iowa chartered savings and loan
1 18 association, an association incorporated or authorized to do
1 19 business under chapter 534, a credit union incorporated or
1 20 authorized to do business under chapter 533 whose common bond
1 21 of association pursuant to section 533.5 is residence within
1 22 specified geographic boundaries, or a production credit
1 23 association.
1 24 Sec. 3. Section 422.61, subsection 3, unnumbered paragraph
1 25 1, Code Supplement 1995, is amended to read as follows:
1 26 3. "Net income" in cases other than credit unions means
1 27 the net income of the financial institution computed in
1 28 accordance with section 422.35, with the following
1 29 adjustments:
1 30 Sec. 4. Section 422.61, subsection 3, Code Supplement
1 31 1995, is amended by adding the following new unnumbered
1 32 paragraph:
1 33 NEW UNNUMBERED PARAGRAPH. "Net income" in the case of a
1 34 credit union taxed under this division means the total
1 35 transfers to undivided earnings and reserves.
2 1 Sec. 5. Section 422.62, Code 1995, is amended to read as
2 2 follows:
2 3 422.62 DUE AND DELINQUENT DATES.
2 4 The franchise tax is due and payable on the first day
2 5 following the end of the taxable year of each financial
2 6 institution, and is delinquent after the last day of the
2 7 fourth month following the due date or for financial
2 8 institutions that are not credit unions forty-five days after
2 9 the due date of the federal tax return, excluding extensions
2 10 of time to file, whichever is the later. Every financial
2 11 institution shall file a return as prescribed by the director
2 12 on or before the delinquency date.
2 13 Sec. 6. Section 533.24, Code 1995, is amended to read as
2 14 follows:
2 15 533.24 TAXATION.
2 16 A credit union shall be deemed an institution for savings
2 17 and is subject to taxation only as to its real estate and
2 18 moneys and credits, except those credit unions subject to the
2 19 state franchise tax. The shares shall not be taxed.
2 20 The moneys and credits tax on credit unions, except those
2 21 credit unions subject to the state franchise tax, is imposed
2 22 at a rate of five mills on each dollar of the legal and
2 23 special reserves which are required to be maintained by the
2 24 credit union under section 533.17, and shall be levied by the
2 25 board of supervisors, and placed upon the tax list and
2 26 collected by the county treasurer, except that an exemption
2 27 shall be given to each credit union in the amount of forty
2 28 thousand dollars. The amount collected in each taxing
2 29 district within a city shall be apportioned twenty percent to
2 30 the county, thirty percent to the city general fund, and fifty
2 31 percent to the general fund of the state, and the amount
2 32 collected in each taxing district outside of cities shall be
2 33 apportioned fifty percent to the county and fifty percent to
2 34 the general fund of the state. The moneys and credits tax
2 35 shall be collected at the location of the credit union as
3 1 shown in its articles of incorporation.
3 2 Credit unions whose common bond of association pursuant to
3 3 section 533.5 is residence within specified geographic
3 4 boundaries are subject to the state franchise tax imposed in
3 5 chapter 422, division V.
3 6 Sec. 7. This Act applies to tax years beginning on or
3 7 after the effective date of this Act.
3 8 EXPLANATION
3 9 The bill applies the franchise tax, currently imposed on
3 10 other financial institutions doing business in Iowa and
3 11 subject to taxation by the state, to state chartered credit
3 12 unions whose common bond is based upon a geographic area.
3 13 For the purposes of computing the tax, "net income" for a
3 14 community-based credit union is defined as the total transfers
3 15 to undivided earnings and reserves.
3 16 The moneys and credit tax currently imposed on all credit
3 17 unions is made inapplicable for those credit unions that are
3 18 subject to the franchise tax.
3 19 LSB 4337HC 76
3 20 mg/cf/24
Text: HSB00710 Text: HSB00712 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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