Text: HSB00754 Text: HSB00756 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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PAG LIN 1 1 Section 1. Section 422.4, subsection 1, paragraph a, Code 1 2 1995, is amended to read as follows: 1 3 a. "Annual inflation factor" means an index, expressed as 1 4 a percentage, determined by the department by October 15 of 1 5 the calendar year preceding the calendar year for which the 1 6 factor is determined, which reflects the purchasing power of 1 7 the dollar as a result of inflation during the fiscal year 1 8 ending in the calendar year preceding the calendar year for 1 9 which the factor is determined. In determining the annual 1 10 inflation factor, the department shall use the annual percent 1 11 change, but not less than zero percent, in theimplicit price1 12deflator for the gross national productgross domestic product 1 13 price deflator computed for the second quarter of the calendar 1 14 year by the bureau of economic analysis of the United States 1 15 department of commerce and shall addone-halfall of that 1 16 percent change to one hundred percent. The annual inflation 1 17 factor and the cumulative inflation factor shall each be 1 18 expressed as a percentage rounded to the nearest one-tenth of 1 19 one percent. The annual inflation factor shall not be less 1 20 than one hundred percent. 1 21 Sec. 2. Section 422.4, subsection 1, paragraph d, Code 1 22 1995, is amended by striking the paragraph. 1 23 Sec. 3. 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. 4. This Act, being deemed of immediate importance, 2 10 takes effect upon enactment and applies to the computation of 2 11 the annual inflation factor and annual standard deduction 2 12 factor for calendar years beginning on or after January 1, 2 13 1996. The department of revenue and finance shall adjust the 2 14 annual inflation factor and annual standard deduction factor 2 15 previously computed for the 1996 calendar year to reflect the 2 16 change made in the computation of those factors in this Act. 2 17 EXPLANATION 2 18 Under present law the tax brackets and standard deduction 2 19 for the state individual income tax are adjusted by an 2 20 inflation factor that uses 50 percent of the change in the 2 21 implicit price deflator for the gross national product. The 2 22 bill increases this to 100 percent of the change in the gross 2 23 domestic product price deflator. The bill also changes the 2 24 reference from the gross national product price deflator to 2 25 the gross domestic product price deflator since the former no 2 26 longer exists. In addition the bill eliminates the 2 27 requirement that before the tax brackets may be adjusted for 2 28 inflation, $60 million must be in the state general fund at 2 29 the end of the fiscal year. 2 30 This bill applies retroactively to tax years beginning on 2 31 or after January 1, 1996. 2 32 LSB 4450HC 76 2 33 mg/sc/14
Text: HSB00754 Text: HSB00756 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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