Text: SF00002 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.4, subsection 2, paragraphs b and 1 2 c, Code 1997, are amended to read as follows: 1 3 b. "Cumulative standard deduction factor" means the 1 4 product of the annual standard deduction factor for the19891 5 1997 calendar year and all annual standard deduction factors 1 6 for subsequent calendar years as determined pursuant to this 1 7 subsection. The cumulative standard deduction factor applies 1 8 to all tax years beginning on or after January 1 of the 1 9 calendar year for which the latest annual standard deduction 1 10 factor has been determined. 1 11 c. The annual standard deduction factor for the19891997 1 12 calendar year is one hundred percent. 1 13 Sec. 2. Section 422.5, subsection 1, paragraphs a through 1 14 i, Code 1997, are amended to read as follows: 1 15 a. On all taxable income from zero through one thousand 1 16 dollars,four-tenthsthirty-six hundredths of one percent. 1 17 b. On all taxable income exceeding one thousand dollars 1 18 but not exceeding two thousand dollars,eight-tenthsseventy- 1 19 two hundredths of one percent. 1 20 c. On all taxable income exceeding two thousand dollars 1 21 but not exceeding four thousand dollars, two andseven-tenths1 22 forty-three hundredths percent. 1 23 d. On all taxable income exceeding four thousand dollars 1 24 but not exceeding nine thousand dollars,fivefour and one- 1 25 half percent. 1 26 e. On all taxable income exceeding nine thousand dollars 1 27 but not exceeding fifteen thousand dollars, six andeight-1 28tenthstwelve hundredths percent. 1 29 f. On all taxable income exceeding fifteen thousand 1 30 dollars but not exceeding twenty thousand dollars,sevensix 1 31 andtwo-tenthsforty-eight hundredths percent. 1 32 g. On all taxable income exceeding twenty thousand dollars 1 33 but not exceeding thirty thousand dollars,sevensix and 1 34fifty-five hundredthseight-tenths percent. 1 35 h. On all taxable income exceeding thirty thousand dollars 2 1 but not exceeding forty-five thousand dollars,eightseven and 2 2eight-tenthsninety-two hundredths percent. 2 3 i. On all taxable income exceeding forty-five thousand 2 4 dollars,nineeight and ninety-eight hundredths percent. 2 5 Sec. 3. Section 422.9, subsection 1, Code 1997, is amended 2 6 to read as follows: 2 7 1. An optional standard deduction, after deduction of 2 8 federal income tax, equal toonethree thousandtwofour 2 9 hundredthirtydollars for a married person who files 2 10 separately or a single person or equal tothreeeight thousand 2 11thirtyfive hundred dollars for a husband and wife who file a 2 12 joint return, a surviving spouse, or an unmarried head of 2 13 household. The optional standard deduction shall not exceed 2 14 the amount remaining after deduction of the federal income 2 15 tax. 2 16 Sec. 4. Section 422.12C, subsection 1, Code 1997, is 2 17 amended to read as follows: 2 18 1. The taxes imposed under this division, less the credits 2 19 allowed under sections 422.11A, 422.11B, 422.11C, 422.12, and 2 20 422.12B shall be reduced by a child and dependent care credit 2 21 equal to the following percentages of the federal child and 2 22 dependent care credit provided in section 21 of the Internal 2 23 Revenue Code: 2 24 a. For a taxpayer with net income of less than ten 2 25 thousand dollars,seventy-fiveninety percent. 2 26 b. For a taxpayer with net income of ten thousand dollars 2 27 or more but less than twenty thousand dollars,sixty-five2 28 eighty percent. 2 29 c. For a taxpayer with net income of twenty thousand 2 30 dollars or more but less than twenty-five thousand dollars, 2 31fifty-fiveseventy percent. 2 32 d. For a taxpayer with net income of twenty-five thousand 2 33 dollars or more but less than thirty-five thousand dollars, 2 34fiftysixty-five percent. 2 35 e. For a taxpayer with net income of thirty-five thousand 3 1 dollars or more but less than forty thousand dollars,forty3 2 fifty-five percent. 3 3 f. For a taxpayer with net income of forty thousand 3 4 dollars or more, zerobut less than sixty thousand dollars, 3 5 forty percent. 3 6 g. For a taxpayer with net income of sixty thousand 3 7 dollars or more but less than eighty thousand dollars, twenty- 3 8 five percent. 3 9 h. For a taxpayer with net income of eighty thousand 3 10 dollars or more, zero percent. 3 11 Sec. 5. This Act applies retroactively to January 1, 1997, 3 12 for tax years beginning on or after that date. 3 13 EXPLANATION 3 14 The bill amends the state individual income tax by reducing 3 15 the tax rates, increasing the standard deduction, and 3 16 increasing the child and dependent credit. The tax rates are 3 17 reduced by 10 percent across the board. The standard 3 18 deduction is increased to $3,400 from $1,380 for singles and 3 19 unmarrieds filing separately and increased to $8,500 from 3 20 $3,400 for marrieds filing jointly, surviving spouses, and 3 21 heads of households. The present standard deductions of 3 22 $1,380 and $3,400 are the statutory amounts adjusted for 3 23 inflation. The child and dependent care credit is presently a 3 24 percentage of the allowable federal credit limited to those 3 25 with net incomes of less than $40,000. The bill increases the 3 26 percentage amount by 15 percentage points and sets the 3 27 percentage amount at 40 percent for taxpayers with net incomes 3 28 between $40,000 and $60,000 and at 25 percent for taxpayers 3 29 with net incomes between $60,000 and $80,000 and limits the 3 30 eligibility for the credit to those with net incomes of less 3 31 than $80,000. 3 32 These changes are retroactively applicable to tax years 3 33 beginning on or after January 1, 1997. 3 34 LSB 1163SS 77 3 35 mg/sc/14.1
Text: SF00002 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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