Text: SF00001 Text: SF00003 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.73, Code 1995, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 3. Notwithstanding subsection 2, a claim
1 4 for credit or refund of individual income tax paid for any tax
1 5 year beginning on or after January 1, 1985, and before January
1 6 1, 1989, is considered timely if filed with the department on
1 7 or before April 30, 1996, if the taxpayer's claim is the
1 8 result of the unconstitutional taxation of federal pension
1 9 benefits based upon the decision in Davis v. Michigan
1 10 Department of Treasury, 489 U.S. 803, 109 S. Ct. 1500 (1989).
1 11 A taxpayer entitled to a credit or refund of tax paid under
1 12 this subsection shall receive an amount equal to ninety-five
1 13 percent of the credit or refund plus interest with interest
1 14 not accruing after January 12, 1994. The claim for credit or
1 15 refund shall be made on the income tax return for the tax year
1 16 beginning in the 1995 calendar year. If the taxpayer does not
1 17 owe tax or the credit is in excess of the tax computed, the
1 18 taxpayer may claim a refund of the excess or carry forward the
1 19 excess credit to the following tax year. A credit carried
1 20 forward shall be used or a refund of the remaining credit
1 21 given for the tax year beginning in the 1996 calendar year.
1 22 The department shall notify or make a reasonable attempt to
1 23 notify by October 1, 1995, all individuals who are entitled to
1 24 a credit or refund under this subsection.
1 25 EXPLANATION
1 26 A recent Iowa supreme court decision held that retired
1 27 federal employees could retroactively claim a refund on state
1 28 individual income taxes unlawfully imposed on their pensions
1 29 if the claim was timely filed. This bill provides that a
1 30 claim filed by April 30, 1996, is timely filed for taxes
1 31 imposed for the 1985, 1986, 1987, and 1988 tax years. The
1 32 taxpayer is entitled to 95 percent of the credit or refund
1 33 plus interest with no interest accruing after January 12,
1 34 1994. The credit and refund must be used or refunded to the
1 35 taxpayer for the tax years prior to the 1997 tax year. The
2 1 department of revenue and finance must attempt to notify the
2 2 individuals entitled to this credit or refund.
2 3 LSB 1049SS 76
2 4 mg/sc/14
Text: SF00001 Text: SF00003 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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