Text: S05453 Text: S05455 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. Page 2, by striking lines 20 through 30 and 1 3 inserting the following: 1 4 "Sec. . Section 450.7, subsection 1, unnumbered 1 5 paragraph 1, Code Supplement 1995, is amended to read 1 6 as follows: 1 7 Except for the share of the estate passing to the 1 8 surviving spouse, father or mother, each son and 1 9 daughter, including legally adopted sons and daughters 1 10 or biological sons and daughters, stepchildren, and 1 11 grandchildren, the tax is a charge against and a lien 1 12 upon the estate subject to tax under this chapter, and 1 13 all property of the estate or owned by the decedent 1 14 from the death of the decedent until paid, subject to 1 15 the following limitation: 1 16 Sec. . Section 450.9, subsection 1, Code 1995, 1 17 is amended to read as follows: 1 18 1. Surviving spouse, father or mother, son or 1 19 daughter, including legally adopted sons and daughters 1 20 or biological sons and daughters, stepchildren, or 1 21 grandchild, the entire amount of property, interest in 1 22 property, and income. 1 23 Sec. . Section 450.9, subsections 2 and 3, Code 1 24 1995, are amended by striking the subsections. 1 25 Sec. . Section 450.10, subsection 1, unnumbered 1 26 paragraph 1, Code 1995, is amended to read as follows: 1 27 When the property, interest, or income passes to 1 28the father or mother, or to a child ora lineal 1 29 descendant of the decedent, grantor, donor, or vendor,1 30including a legally adopted child or biological child1 31entitled to inherit under the laws of this statenot 1 32 included in subsection 7, the tax imposed shall be on 1 33 the individual share so passing in excess of the 1 34 exemptions allowed as follows: 1 35 Sec. . Section 450.10, subsection 2, unnumbered 1 36 paragraph 1, Code 1995, is amended to read as follows: 1 37 When the property or any interestthereinin 1 38 property, or incometherefromfrom property taxable 1 39 under the provisions of this chapter passes to the 1 40 brother or sister, son-in-law, or daughter-in-law,or1 41step-children,the rate of tax imposed on the 1 42 individual share so passing shall be as follows: 1 43 Sec. . Section 450.10, subsection 7, Code 1995, 1 44 is amended to read as follows: 1 45 7. Property, interest in property, or income 1 46 passing to the surviving spouse, father or mother, son 1 47 or daughter, including legally adopted sons and 1 48 daughters or biological sons and daughters, stepchild, 1 49 or grandchild, is not taxable under this section." 1 50 #2. By striking page 7, line 35, through page 15, 2 1 line 18, and inserting the following: 2 2 "Sec. . Section 422.5, subsection 1, paragraph 2 3 j, Code 1995, is amended by adding the following new 2 4 unnumbered paragraph: 2 5 NEW UNNUMBERED PARAGRAPH. The tax imposed upon the 2 6 taxable income of a resident shareholder in a 2 7 corporation which has in effect for the tax year an 2 8 election under subchapter S of the Internal Revenue 2 9 Code and carries on business within and without the 2 10 state shall be computed by reducing the amount 2 11 determined pursuant to paragraphs "a" through "i" by 2 12 the amounts of nonrefundable credits under this 2 13 division and by multiplying this resulting amount by a 2 14 fraction of which the resident's net income allocated 2 15 to Iowa, as determined in section 422.8, subsection 2, 2 16 paragraph "b", is the numerator and the resident's 2 17 total net income computed under section 422.7 is the 2 18 denominator. This paragraph also applies to 2 19 individuals who are residents of Iowa for less than 2 20 the entire tax year. 2 21 Sec. . Section 422.5, subsection 1, paragraph 2 22 k, unnumbered paragraph 4, Code 1995, is amended to 2 23 read as follows: 2 24 In the case of a resident, including a resident 2 25 estate or trust, the state's apportioned share of the 2 26 state alternative minimum tax is one hundred percent 2 27 of the state alternative minimum tax computed in this 2 28 subsection. In the case of a resident or part year 2 29 resident shareholder in a corporation which has in 2 30 effect for the tax year an election under subchapter S 2 31 of the Internal Revenue Code and carries on business 2 32 within and without the state, a nonresident, including 2 33 a nonresident estate or trust, or an individual, 2 34 estate, or trust that is domiciled in the state for 2 35 less than the entire tax year, the state's apportioned 2 36 share of the state alternative minimum tax is the 2 37 amount of tax computed under this subsection, reduced 2 38 by the applicable credits in sections 422.10 through 2 39 422.12 and this result multiplied by a fraction with a 2 40 numerator of the sum of state net income allocated to 2 41 Iowa as determined in section 422.8, subsection 2, 2 42 paragraph "a" or "b" as applicable, plus tax 2 43 preference items, adjustments, and losses under 2 44 subparagraph (1) attributable to Iowa and with a 2 45 denominator of the sum of total net income computed 2 46 under section 422.7 plus all tax preference items, 2 47 adjustments, and losses under subparagraph (1). In 2 48 computing this fraction, those items excludable under 2 49 subparagraph (1) shall not be used in computing the 2 50 tax preference items. Married taxpayers electing to 3 1 file separate returns or separately on a combined 3 2 return must allocate the minimum tax computed in this 3 3 subsection in the proportion that each spouse's 3 4 respective preference items, adjustments, and losses 3 5 under subparagraph (1) bear to the combined preference 3 6 items, adjustments, and losses under subparagraph (1) 3 7 of both spouses. 3 8 Sec. . Section 422.8, subsection 2, Code 1995, 3 9 is amended to read as follows: 3 10 2. a. Nonresident's net income allocated to Iowa 3 11 is the net income, or portion thereof, which is 3 12 derived from a business, trade, profession, or 3 13 occupation carried on within this state or income from 3 14 any property, trust, estate, or other source within 3 15 Iowa. However, income derived from a business, trade, 3 16 profession, or occupation carried on within this state 3 17 and income from any property, trust, estate, or other 3 18 source within Iowa shall not include distributions 3 19 from pensions, including defined benefit or defined 3 20 contribution plans, annuities, individual retirement 3 21 accounts, and deferred compensation plans or any 3 22 earnings attributable thereto so long as the 3 23 distribution is directly related to an individual's 3 24 documented retirement and received while the 3 25 individual is a nonresident of this state. If a 3 26 business, trade, profession, or occupation is carried 3 27 on partly within and partly without the state, only 3 28 the portion of the net income which is fairly and 3 29 equitably attributable to that part of the business, 3 30 trade, profession, or occupation carried on within the 3 31 state is allocated to Iowa for purposes of section 3 32 422.5, subsection 1, paragraph "j", and section 422.13 3 33 and income from any property, trust, estate, or other 3 34 source partly within and partly without the state is 3 35 allocated to Iowa in the same manner, except that 3 36 annuities, interest on bank deposits and interest- 3 37 bearing obligations, and dividends are allocated to 3 38 Iowa only to the extent to which they are derived from 3 39 a business, trade, profession, or occupation carried 3 40 on within the state. 3 41 b. A resident's income allocable to Iowa is the 3 42 income determined under section 422.7 reduced by items 3 43 of income and expenses from a subchapter S corporation 3 44 which pass directly to the shareholders under 3 45 provisions of the Internal Revenue Code and increased 3 46 by the greatest of the following: 3 47 (1) The net income or loss of the corporation 3 48 which is fairly and equitably attributable to this 3 49 state under section 422.33, subsections 2 and 3. 3 50 (2) The taxpayer's pro rata share of an amount 4 1 deemed distributed to shareholders which when added to 4 2 the salaries, wages, or other compensation for 4 3 services performed by all shareholders will equal ten 4 4 percent of the net income of the corporation computed 4 5 in accordance with section 422.35 and considering 4 6 items of income and expense which pass directly to the 4 7 shareholders under provisions of the Internal Revenue 4 8 Code before deduction of shareholder's salaries, 4 9 wages, or other compensation for services performed. 4 10 (3) Any cash or the value of any property 4 11 distributions made to the extent they are paid from 4 12 income upon which Iowa income tax has not been paid as 4 13 determined under rules of the director. 4 14 Sec. . Section 422.8, Code 1995, is amended by 4 15 adding the following new subsection: 4 16 NEW SUBSECTION. 6. If the resident or part year 4 17 resident is a shareholder of a corporation which has 4 18 in effect an election under subchapter S of the 4 19 Internal Revenue Code, subsections 1 and 3 do not 4 20 apply to any income taxes paid to another state or 4 21 foreign country on the income from the corporation 4 22 which has in effect an election under subchapter S of 4 23 the Internal Revenue Code. 4 24 Sec. . This division of this Act, being deemed 4 25 of immediate importance, takes effect upon enactment 4 26 and applies retroactively to January 1, 1996, for tax 4 27 years beginning on or after that date." 4 28 #3. By striking page 20, line 30, through page 29, 4 29 line 9. 4 30 #4. Page 29, line 20, by striking the word 4 31 "thirty-five" and inserting the following: "forty- 4 32 three". 4 33 #5. Title page, lines 9 through 11 by striking the 4 34 words "establishing incentives for family farm animal 4 35 feeding operations and making an appropriation;". 4 36 4 37 4 38 4 39 BRAD BANKS 4 40 4 41 4 42 4 43 SF 2449.303 76 4 44 mg/cf
Text: S05453 Text: S05455 Text: S05400 - S05499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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