Text: SSB02048 Text: SSB02050 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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 2, paragraph a, Code 1 22 1995, is amended to read as follows: 1 23 a. "Annual standard deduction factor" means an index, 1 24 expressed as a percentage, determined by the department by 1 25 October 15 of the calendar year preceding the calendar year 1 26 for which the factor is determined, which reflects the 1 27 purchasing power of the dollar as a result of inflation during 1 28 the fiscal year ending in the calendar year preceding the 1 29 calendar year for which the factor is determined. In 1 30 determining the annual standard deduction factor, the 1 31 department shall use the annual percent change, but not less 1 32 than zero percent, in theimplicit price deflator for the1 33gross national productgross domestic product price deflator 1 34 computed for the second quarter of the calendar year by the 1 35 bureau of economic analysis of the United States department of 2 1 commerce and shall addone-halfall of that percent change to 2 2 one hundred percent. The annual standard deduction factor and 2 3 the cumulative standard deduction factor shall each be 2 4 expressed as a percentage rounded to the nearest one-tenth of 2 5 one percent. The annual standard deduction factor shall not 2 6 be less than one hundred percent. 2 7 Sec. 3. This Act, being deemed of immediate importance, 2 8 takes effect upon enactment and applies to the computation of 2 9 the annual inflation factor and annual standard deduction 2 10 factor for calendar years beginning on or after January 1, 2 11 1996. The department of revenue and finance shall adjust the 2 12 annual inflation factor and annual standard deduction factor 2 13 previously computed for the 1996 calendar year to reflect the 2 14 change made in the computation of those factors in this Act. 2 15 EXPLANATION 2 16 Under present law the tax brackets and standard deduction 2 17 for the state individual income tax are adjusted by an 2 18 inflation factor that uses 50 percent of the change in the 2 19 implicit price deflator for the gross national product. The 2 20 bill increases this to 100 percent of the change in the gross 2 21 domestic product price deflator. The bill changes the 2 22 reference from the gross national product price deflator to 2 23 the gross domestic product price deflator since the former no 2 24 longer exists. This bill applies retroactively to tax years 2 25 beginning on or after January 1, 1996. 2 26 LSB 3599XL 76 2 27 mg/cf/24
Text: SSB02048 Text: SSB02050 Text: SSB02000 - SSB02099 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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