Text: HF00130 Text: HF00132 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.73, Code 1997, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 3. Notwithstanding subsection 2, a claim 1 4 for refund of individual income tax paid for any tax year 1 5 beginning on or after January 1, 1985, and before January 1, 1 6 1989, is considered timely if filed with the department on or 1 7 before October 31, 1997, if the taxpayer's claim is the result 1 8 of the unconstitutional taxation of federal pension benefits 1 9 based upon the decision in Davis v. Michigan Department of 1 10 Treasury, 489 U.S. 803, 109 S. Ct. 1500 (1989). 1 11 A taxpayer entitled to a refund of tax paid under this 1 12 subsection shall receive an amount equal to one hundred 1 13 percent of the refund without interest. The claim for refund 1 14 shall be filed separate from any income tax return and shall 1 15 not be allowed as a credit for income taxes owed. A claim 1 16 shall be filed between the effective date of this Act and 1 17 October 31, 1997. An extension for filing shall not be 1 18 allowed and claims disallowed on the basis of timeliness shall 1 19 not be allowed upon appeal to any other state agency 1 20 notwithstanding any other provision of law. 1 21 The claim for refund shall be made on claim forms to be 1 22 made available by the department. In order for a taxpayer to 1 23 have a valid refund claim, the taxpayer must supply legible 1 24 copies of documents the director deems necessary to show 1 25 entitlement to the refund, including but not limited to income 1 26 tax forms and W-2P forms, which will establish the state 1 27 income tax that was paid on the federal pension benefits for 1 28 the tax years in question. The burden of proof is on the 1 29 taxpayer to show that the claim for refund is valid. Estates 1 30 are not entitled to file a claim for refund under this 1 31 subsection, except a spouse of a deceased taxpayer who was the 1 32 spouse of the taxpayer when the unconstitutional tax was 1 33 imposed may file a claim for refund without reopening the 1 34 deceased taxpayer's estate. If a taxpayer has filed a claim 1 35 under this subsection and subsequently dies before receipt of 2 1 the refund, the taxpayer's estate is entitled to receipt of 2 2 any valid refund claim. 2 3 The department shall make a reasonable attempt to notify 2 4 individuals who are entitled to a refund under this 2 5 subsection. 2 6 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 2 7 immediate importance, takes effect upon enactment. 2 8 EXPLANATION 2 9 A 1993 Iowa supreme court decision held that retired 2 10 federal employees could retroactively receive a refund of 2 11 state individual income taxes unlawfully imposed on their 2 12 pensions if the refund claim was timely filed. This bill 2 13 provides that a claim filed by October 31, 1997, is timely 2 14 filed for taxes imposed for the 1985, 1986, 1987, and 1988 tax 2 15 years. The taxpayer is entitled to 100 percent of the refund 2 16 without interest. To claim a refund, the taxpayer must submit 2 17 adequate evidence, as designated by the director of revenue 2 18 and finance, showing the taxpayer's entitlement to the refund. 2 19 The claim is to be filed separately from any state income tax 2 20 return and no credit for income taxes owed is allowed. The 2 21 department shall attempt to notify individuals who are 2 22 entitled to a refund. 2 23 The bill takes effect upon enactment. 2 24 LSB 1750HH 77 2 25 mg/sc/14
Text: HF00130 Text: HF00132 Text: HF00100 - HF00199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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