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House Journal: Page 1049: Wednesday, March 27, 1996

H-5668

 1     Amend the amendment, H-5523, to Senate File 2449,
 2   as amended, passed, and reprinted by the Senate, as
 3   follows:
 4     1.  Page 1, line 6, by striking the word
 5   "INDEXATION".
 6     2.  Page 2, by inserting after line 16 the
 7   following:
 8     "Sec. ___.  NEW SECTION.  422.12F  CAPITAL GAIN
 9   CREDIT.
10     1.  The taxes imposed under this division shall be
11   reduced by a capital gain credit equal to fifty
12   percent of the net capital gain of the taxpayer on the
13   sale of agricultural land to a beginning farmer under
14   the "Farm-On" program of the agricultural extension
15   service.  However, to receive the credit both the
16   taxpayer and the beginning farmer must be enrolled in
17   the "Farm-On" program prior to the sale of the
18   agricultural land.
19     2.  The taxpayer must completely fill out the
20   return and determine the taxpayer's tax liability
21   without deduction for the credit allowed in subsection
22   1 and pay the amount of tax owed.  The taxpayer shall
23   then recompute the taxpayer's income tax liability
24   pursuant to this division with the deduction for the
25   credit allowed in subsection 1 on a special return.
26   This special return shall be filed with the regular
27   return and constitutes a claim for refund of the
28   difference between the amount of tax the taxpayer paid
29   on the regular return and the amount of tax determined
30   on the special return.
31     3.  For any tax year, the aggregate amount of
32   refund claims that shall be paid pursuant to this
33   section shall not exceed ten million dollars.  If, for
34   a tax year, the aggregate amount of refund claims
35   filed pursuant to this section exceeds ten million
36   dollars, each claim for refund shall be paid on a pro
37   rata basis so that the aggregate amount of refund
38   claims does not exceed ten million dollars.  In the
39   case where refund claims are not allowed in full, the
40   amount of the refund to which the taxpayer is entitled
41   under this section is the pro rata amount that was
42   paid and the taxpayer is not entitled to a refund of
43   the unpaid portion and is not entitled to carry that
44   amount forward or backward to another tax year.
45   Taxpayers shall not use refunds as estimated payments
46   for the succeeding tax year.  The department shall
47   determine by October 1 of the tax year following the
48   tax year for which the refund claim is filed if the
49   aggregate amount of refund claims exceeds ten million
50   dollars for the tax year.  Notwithstanding any

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 2)

© 1996 Cornell College and League of Women Voters of Iowa

Comments? hjourn@legis.iowa.gov.

Last update: Thu Mar 28 13:30:02 CST 1996
URL: /DOCS/GA/76GA/Session.2/HJournal/01000/01049.html
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