Text: S05446 Text: S05448 Text: S05400 - S05499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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PAG LIN 1 1 Amend Senate File 2449 as follows: 1 2 #1. By striking everything after the enacting 1 3 clause and inserting the following: 1 4 "DIVISION I 1 5 INCOME TAX INDEXATION 1 6 Section 1. Section 422.4, subsection 1, paragraphs 1 7 a and d, Code 1995, are amended to read as follows: 1 8 a. "Annual inflation factor" means an index, 1 9 expressed as a percentage, determined by the 1 10 department by October 15 of the calendar year 1 11 preceding the calendar year for which the factor is 1 12 determined, which reflects the purchasing power of the 1 13 dollar as a result of inflation during the fiscal year 1 14 ending in the calendar year preceding the calendar 1 15 year for which the factor is determined. In 1 16 determining the annual inflation factor, the 1 17 department shall use the annual percent change, but 1 18 not less than zero percent, in theimplicit price1 19deflator for the gross national productgross domestic 1 20 product price deflator computed for the second quarter 1 21 of the calendar year by the bureau of economic 1 22 analysis of the United States department of commerce 1 23 and shall addone-halfall of that percent change to 1 24 one hundred percent. The annual inflation factor and 1 25 the cumulative inflation factor shall each be 1 26 expressed as a percentage rounded to the nearest one- 1 27 tenth of one percent. The annual inflation factor 1 28 shall not be less than one hundred percent. 1 29 d. Notwithstanding the computation of the annual 1 30 inflation factor under paragraph "a", the annual 1 31 inflation factor is one hundred percent for any 1 32 calendar year in which the unobligated state general 1 33 fund balance on June 30 as certified by the director 1 34 of the department of management by October 10, is less 1 35 than sixty million dollars. Notwithstanding section 1 36 8.58, in determining the unobligated state general 1 37 fund balance on June 30, unobligated moneys in the 1 38 cash reserve fund and Iowa economic emergency fund on 1 39 June 30 shall be counted as part of the unobligated 1 40 state general fund balance for purposes of this 1 41 paragraph. 1 42 Sec. 2. Section 422.4, subsection 2, paragraph a, 1 43 Code 1995, is amended to read as follows: 1 44 a. "Annual standard deduction factor" means an 1 45 index, expressed as a percentage, determined by the 1 46 department by October 15 of the calendar year 1 47 preceding the calendar year for which the factor is 1 48 determined, which reflects the purchasing power of the 1 49 dollar as a result of inflation during the fiscal year 1 50 ending in the calendar year preceding the calendar 2 1 year for which the factor is determined. In 2 2 determining the annual standard deduction factor, the 2 3 department shall use the annual percent change, but 2 4 not less than zero percent, in theimplicit price2 5deflator for the gross national productgross domestic 2 6 product price deflator computed for the second quarter 2 7 of the calendar year by the bureau of economic 2 8 analysis of the United States department of commerce 2 9 and shall addone-halfall of that percent change to 2 10 one hundred percent. The annual standard deduction 2 11 factor and the cumulative standard deduction factor 2 12 shall each be expressed as a percentage rounded to the 2 13 nearest one-tenth of one percent. The annual standard 2 14 deduction factor shall not be less than one hundred 2 15 percent. 2 16 Sec. 3. This division of this Act, being deemed of 2 17 immediate importance, takes effect upon enactment and 2 18 applies to the computation of the annual inflation 2 19 factor and annual standard deduction factor for 2 20 calendar years beginning on or after January 1, 1996. 2 21 The department of revenue and finance shall adjust the 2 22 annual inflation factor and annual standard deduction 2 23 factor previously computed for the 1996 calendar year 2 24 to reflect the change made in the computation of those 2 25 factors in this Act. 2 26 DIVISION II 2 27 INHERITANCE TAXATION 2 28 Sec. 4. Section 450.7, subsection 1, unnumbered 2 29 paragraph 1, Code Supplement 1995, is amended to read 2 30 as follows: 2 31 Except for the share of the estate passing to the 2 32 surviving spouse, father or mother, each son and 2 33 daughter, including legally adopted sons and daughters 2 34 or biological sons and daughters, stepchildren, and 2 35 grandchildren, the tax is a charge against and a lien 2 36 upon the estate subject to tax under this chapter, and 2 37 all property of the estate or owned by the decedent 2 38 from the death of the decedent until paid, subject to 2 39 the following limitation: 2 40 Sec. 5. Section 450.9, subsection 1, Code 1995, is 2 41 amended to read as follows: 2 42 1. Surviving spouse, father or mother, son or 2 43 daughter, including legally adopted sons and daughters 2 44 or biological sons and daughters, stepchildren, or 2 45 grandchild, the entire amount of property, interest in 2 46 property, and income. 2 47 Sec. 6. Section 450.9, subsections 2 and 3, Code 2 48 1995, are amended by striking the subsections. 2 49 Sec. 7. Section 450.10, subsection 1, unnumbered 2 50 paragraph 1, Code 1995, is amended to read as follows: 3 1 When the property, interest, or income passes to 3 2the father or mother, or to a child ora lineal 3 3 descendant of the decedent, grantor, donor, or vendor,3 4including a legally adopted child or biological child3 5entitled to inherit under the laws of this statenot 3 6 included in subsection 7, the tax imposed shall be on 3 7 the individual share so passing in excess of the 3 8 exemptions allowed as follows: 3 9 Sec. 8. Section 450.10, subsection 2, unnumbered 3 10 paragraph 1, Code 1995, is amended to read as follows: 3 11 When the property or any interestthereinin 3 12 property, or incometherefromfrom property taxable 3 13 under the provisions of this chapter passes to the 3 14 brother or sister, son-in-law, or daughter-in-law,or3 15step-children,the rate of tax imposed on the 3 16 individual share so passing shall be as follows: 3 17 Sec. 9. Section 450.10, subsection 7, Code 1995, 3 18 is amended to read as follows: 3 19 7. Property, interest in property, or income 3 20 passing to the surviving spouse, father or mother, son 3 21 or daughter, including legally adopted sons and 3 22 daughters or biological sons and daughters, stepchild, 3 23 or grandchild, is not taxable under this section. 3 24 Sec. 10. This division of this Act applies to 3 25 estates of decedents dying on or after July 1, 1996. 3 26 DIVISION III 3 27 SCHOOL PROPERTY TAX 3 28 Sec. 11. Section 257.3, subsection 1, unnumbered 3 29 paragraph 1, Code Supplement 1995, is amended to read 3 30 as follows: 3 31Except as provided in subsections 2 and 3, aA 3 32 school district shall cause to be levied each year, 3 33 for the school general fund, a foundation property tax 3 34 equal tofivefour dollars andfortyfifteen cents per 3 35 thousand dollars of assessed valuation on all taxable 3 36 property in the district. The county auditor shall 3 37 spread the foundation levy over all taxable property 3 38 in the district. 3 39 Sec. 12. Section 257.3, subsections 2 and 3, Code 3 40 Supplement 1995, are amended by striking the 3 41 subsections. 3 42 Sec. 13. Section 257.3, subsection 4, Code 3 43 Supplement 1995, is amended to read as follows: 3 44 4. RAILWAY CORPORATIONS. For purposes of section 3 45 257.1, the "amount per pupil of foundation property 3 46 tax" does not include the tax levied under subsection 3 47 1, 2, or 3on the property of a railway corporation, 3 48 or on its trustee if the corporation has been declared 3 49 bankrupt or is in bankruptcy proceedings. 3 50 Sec. 14. Section 275.55, unnumbered paragraph 4, 4 1 Code 1995, is amended by striking the unnumbered 4 2 paragraph. 4 3 Sec. 15. Section 425A.3, subsection 1, Code 1995, 4 4 is amended to read as follows: 4 5 1. The family farm tax credit fund shall be 4 6 apportioned each year in the manner provided in this 4 7 chapter so as to give a credit against the tax on each 4 8 eligible tract of agricultural land within the several 4 9 school districts of the state in which the levy for 4 10 the general school fund exceedsfivefour dollars and 4 11fortyfifteen cents per thousand dollars of assessed 4 12 value. The amount of the credit on each eligible 4 13 tract of agricultural land shall be the amount the tax 4 14 levied for the general school fund exceeds the amount 4 15 of tax which would be levied on each eligible tract of 4 16 agricultural land were the levy for the general school 4 17 fundfivefour dollars andfortyfifteen cents per 4 18 thousand dollars of assessed value for the previous 4 19 year. However, in the case of a deficiency in the 4 20 family farm tax credit fund to pay the credits in 4 21 full, the credit on each eligible tract of 4 22 agricultural land in the state shall be proportionate 4 23 and applied as provided in this chapter. 4 24 Sec. 16. Section 425A.5, Code 1995, is amended to 4 25 read as follows: 4 26 425A.5 COMPUTATION BY COUNTY AUDITOR. 4 27 The family farm tax credit allowed each year shall 4 28 be computed as follows: On or before March 1, the 4 29 county auditor shall list by school districts all 4 30 tracts of agricultural land which are entitled to 4 31 credit, the taxable value for the previous year, the 4 32 budget from each school district for the previous 4 33 year, and the tax rate determined for the general fund 4 34 of the school district in the manner prescribed in 4 35 section 444.3 for the previous year, and if the tax 4 36 rate is in excess offivefour dollars andforty4 37 fifteen cents per thousand dollars of assessed value, 4 38 the auditor shall multiply the tax levy which is in 4 39 excess offivefour dollars andfortyfifteen cents 4 40 per thousand dollars of assessed value by the total 4 41 taxable value of the agricultural land entitled to 4 42 credit in the school district, and on or before March 4 43 1, certify the total amount of credit and the total 4 44 number of acres entitled to the credit to the 4 45 department of revenue and finance. 4 46 Sec. 17. Section 426.3, Code 1995, is amended to 4 47 read as follows: 4 48 426.3 WHERE CREDIT GIVEN. 4 49 The agricultural land credit fund shall be 4 50 apportioned each year in the mannerhereinafter5 1 provided in this chapter so as to give a credit 5 2 against the tax on each tract of agricultural lands 5 3 within the several school districts of the state in 5 4 which the levy for the general school fund exceeds 5 5fivefour dollars andfortyfifteen cents per thousand 5 6 dollars of assessed value; the amount ofsuchcredit 5 7 on each tract ofsuchlands shall be the amount the 5 8 tax levied for the general school fund exceeds the 5 9 amount of tax which would be levied onsaidthe tract 5 10 ofsuchlands were the levy for the general school 5 11 fundfivefour dollars andfortyfifteen cents per 5 12 thousand dollars of assessed value for the previous 5 13 year, except in the case of a deficiency in the 5 14 agricultural land credits fund to paysaidcredits in 5 15 full, in which case the credit on each eligible tract 5 16 ofsuchlands in the state shall be proportionate and 5 17 shall be applied ashereinafterprovided in this 5 18 chapter. 5 19 Sec. 18. Section 426.6, unnumbered paragraph 1, 5 20 Code 1995, is amended to read as follows: 5 21 The agricultural land tax credit allowed each year 5 22 shall be computed as follows: On or before the first 5 23 of June the county auditor shall list by school 5 24 districts all tracts of agricultural lands which they 5 25 are entitled to credit, together with the taxable 5 26 value for the previous year, together with the budget 5 27 from each school district for the previous year, and 5 28 the tax rate determined for the general fund of the 5 29 district in the manner prescribed in section 444.3 for 5 30 the previous year, and ifsuchthe tax rate is in 5 31 excess offivefour dollars andfortyfifteen cents 5 32 per thousand dollars of assessed value, the auditor 5 33 shall multiply the tax levy which is in excess offive5 34 four dollars andfortyfifteen cents per thousand 5 35 dollars of assessed value by the total taxable value 5 36 of the agricultural lands entitled to credit in the 5 37 district, and on or before the first of June certify 5 38 the amount to the department of revenue and finance. 5 39 Sec. 19. 5 40 1. Sections 11 through 14 of this division of this 5 41 Act, being deemed of immediate importance, take effect 5 42 upon enactment, and apply to the computation of school 5 43 foundation property taxes payable during school budget 5 44 years beginning on or after July 1, 1996. 5 45 2. Sections 15 through 18 of this division of this 5 46 Act take effect January 1, 1997, and apply to the 5 47 computation of family farm tax credits and 5 48 agricultural land tax credits granted for property 5 49 taxes payable in school budget years beginning on or 5 50 after July 1, 1997." 6 1 #2. Title page, by striking lines 1 through 13 and 6 2 inserting the following: "An Act relating to taxation 6 3 within the state by changing the computation of the 6 4 inflation factors for the tax brackets and standard 6 5 deduction of the state individual income tax, 6 6 exemptions from the state inheritance tax, and 6 7 reducing the school district uniform levy for purposes 6 8 of providing tax relief and providing effective and 6 9 retroactive and other applicability date provisions." 6 10 6 11 6 12 6 13 WAYNE D. BENNETT 6 14 MERLIN E. BARTZ 6 15 STEWART IVERSON, JR. 6 16 JIM LIND 6 17 O. GENE MADDOX 6 18 DERRYL MCLAREN 6 19 SF 2449.701 76 6 20 mg/sc
Text: S05446 Text: S05448 Text: S05400 - S05499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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