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House Amendment 8516

Amendment Text

PAG LIN
  1  1    Amend House File 2513 as follows:
  1  2    #1.  Page 9, by inserting after line 35 the
  1  3 following:  
  1  4                      "DIVISION ___
  1  5           NET INCOME EXCLUSION AND CIGARETTE
  1  6                      TAX INCREASE
  1  7    Sec. 100.  Section 422.5, subsections 2 and 8, Code
  1  8 Supplement 1997, are amended to read as follows:
  1  9    2.  However, the tax shall not be imposed on a
  1 10 resident or nonresident whose net income, as defined
  1 11 in section 422.7, is thirteen sixteen thousand five
  1 12 eight hundred seventy-five dollars or less in the case
  1 13 of married persons filing jointly or filing separately
  1 14 on a combined return, unmarried heads of household,
  1 15 and surviving spouses or nine eleven thousand two
  1 16 hundred fifty dollars or less in the case of all other
  1 17 persons; but in the event that the payment of tax
  1 18 under this division would reduce the net income to
  1 19 less than thirteen sixteen thousand five eight hundred
  1 20 seventy-five dollars or nine eleven thousand two
  1 21 hundred fifty dollars as applicable, then the tax
  1 22 shall be reduced to that amount which would result in
  1 23 allowing the taxpayer to retain a net income of
  1 24 thirteen sixteen thousand five eight hundred seventy-
  1 25 five dollars or nine eleven thousand two hundred fifty
  1 26 dollars as applicable.  The preceding sentence does
  1 27 not apply to estates or trusts.  For the purpose of
  1 28 this subsection, the entire net income, including any
  1 29 part of the net income not allocated to Iowa, shall be
  1 30 taken into account.  For purposes of this subsection,
  1 31 net income includes all amounts of pensions or other
  1 32 retirement income received from any source which is
  1 33 not taxable under this division as a result of the
  1 34 government pension exclusions in section 422.7, or any
  1 35 other state law.  If the combined net income of a
  1 36 husband and wife exceeds thirteen sixteen thousand
  1 37 five eight hundred seventy-five dollars, neither of
  1 38 them shall receive the benefit of this subsection, and
  1 39 it is immaterial whether they file a joint return or
  1 40 separate returns.  However, if a husband and wife file
  1 41 separate returns and have a combined net income of
  1 42 thirteen sixteen thousand five eight hundred seventy-
  1 43 five dollars or less, neither spouse shall receive the
  1 44 benefit of this paragraph, if one spouse has a net
  1 45 operating loss and elects to carry back or carry
  1 46 forward the loss as provided in section 422.9,
  1 47 subsection 3.  A person who is claimed as a dependent
  1 48 by another person as defined in section 422.12 shall
  1 49 not receive the benefit of this subsection if the
  1 50 person claiming the dependent has net income exceeding
  2  1 thirteen sixteen thousand five eight hundred seventy-
  2  2 five dollars or nine eleven thousand two hundred fifty
  2  3 dollars as applicable or the person claiming the
  2  4 dependent and the person's spouse have combined net
  2  5 income exceeding thirteen sixteen thousand five eight
  2  6 hundred seventy-five dollars or nine eleven thousand
  2  7 two hundred fifty dollars as applicable.
  2  8    In addition, if the married persons', filing
  2  9 jointly or filing separately on a combined return,
  2 10 unmarried head of household's, or surviving spouse's
  2 11 net income exceeds thirteen sixteen thousand five
  2 12 eight hundred seventy-five dollars, the regular tax
  2 13 imposed under this division shall be the lesser of the
  2 14 maximum state individual income tax rate times the
  2 15 portion of the net income in excess of thirteen
  2 16 sixteen thousand five eight hundred seventy-five
  2 17 dollars or the regular tax liability computed without
  2 18 regard to this sentence.  Taxpayers electing to file
  2 19 separately shall compute the alternate tax described
  2 20 in this paragraph using the total net income of the
  2 21 husband and wife.  The alternate tax described in this
  2 22 paragraph does not apply if one spouse elects to carry
  2 23 back or carry forward the loss as provided in section
  2 24 422.9, subsection 3.
  2 25    8.  In addition to the other taxes imposed by this
  2 26 section, a tax is imposed on the amount of a lump sum
  2 27 distribution for which the taxpayer has elected under
  2 28 section 402(e) of the Internal Revenue Code to be
  2 29 separately taxed for federal income tax purposes for
  2 30 the tax year.  The rate of tax is equal to twenty-five
  2 31 percent of the separate federal tax imposed on the
  2 32 amount of the lump sum distribution.  A nonresident is
  2 33 liable for this tax only on that portion of the lump
  2 34 sum distribution allocable to Iowa.  The total amount
  2 35 of the lump sum distribution subject to separate
  2 36 federal tax shall be included in net income for
  2 37 purposes of determining eligibility under the thirteen
  2 38 sixteen thousand five eight hundred seventy-five
  2 39 dollar or less or nine eleven thousand two hundred
  2 40 fifty dollar or less exclusion, as applicable.
  2 41    Sec. ___.  Section 453A.6, subsection 1, Code 1997,
  2 42 is amended to read as follows:
  2 43    1.  There is imposed, and shall be collected and
  2 44 paid to the department, the following taxes on all
  2 45 cigarettes used or otherwise disposed of in this state
  2 46 for any purpose whatsoever:
  2 47    CLASS A.  On cigarettes weighing not more than
  2 48 three pounds per thousand, eighteen mills three cents
  2 49 on each such cigarette.
  2 50    CLASS B.  On cigarettes weighing more than three
  3  1 pounds per thousand, eighteen mills three cents on
  3  2 each such cigarette.
  3  3    Sec. ___.  APPLICABILITY.  Section 100 of this
  3  4 division applies retroactively to January 1, 1998, for
  3  5 tax years beginning on or after that date."
  3  6    #2.  Title page, line 5, by inserting after the
  3  7 word "credits," the following:  "increasing the net
  3  8 income exclusion amount,".
  3  9    #3.  Title page, line 8, by inserting after the
  3 10 word "taxes," the following:  "relating to an increase
  3 11 in the cigarette tax rate,".  
  3 12 
  3 13 
  3 14                               
  3 15 DODERER of Johnson 
  3 16 
  3 17 
  3 18                               
  3 19 MASCHER of Johnson 
  3 20 
  3 21 
  3 22                               
  3 23 CHAPMAN of Linn 
  3 24 
  3 25 
  3 26                               
  3 27 KOENIGS of Mitchell 
  3 28 
  3 29 
  3 30                               
  3 31 FALLON of Polk 
  3 32 HF 2513.704 77
  3 33 mg/sc/28
     

Text: H08515                            Text: H08517
Text: H08500 - H08599                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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