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
Iowa General Assembly
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