Text: SF00260 Text: SF00262 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.5, subsections 2 and 11, Code 1997, 1 2 are amended by striking the subsections. 1 3 Sec. 2. Section 422.5, subsection 8, Code 1997, is amended 1 4 to read as follows: 1 5 8. In addition to the other taxes imposed by this section, 1 6 a tax is imposed on the amount of a lump sum distribution for 1 7 which the taxpayer has elected under section 402(e) of the 1 8 Internal Revenue Code to be separately taxed for federal 1 9 income tax purposes for the tax year. The rate of tax is 1 10 equal to twenty-five percent of the separate federal tax 1 11 imposed on the amount of the lump sum distribution. A 1 12 nonresident is liable for this tax only on that portion of the 1 13 lump sum distribution allocable to Iowa.The total amount of1 14the lump sum distribution subject to separate federal tax1 15shall be included in net income for purposes of determining1 16eligibility under the thirteen thousand five hundred dollar or1 17less or nine thousand dollar or less exclusion, as applicable.1 18 Sec. 3. Section 422.7, unnumbered paragraph 1, Code 1997, 1 19 is amended to read as follows: 1 20 The term "net income" means the adjusted gross income 1 21 before the net operating loss deduction as properly computed 1 22 for federal income tax purposes under the Internal Revenue 1 23 Code minus twenty-five thousand dollars, with the following 1 24 adjustments: 1 25 Sec. 4. Section 422.7, Code 1997, is amended by adding the 1 26 following new unnumbered paragraph: 1 27 NEW UNNUMBERED PARAGRAPH. In computing net income if the 1 28 twenty-five thousand dollars to be subtracted exceeds the 1 29 federal adjusted gross income before the net operating loss 1 30 deduction, such excess shall be used to offset any additions 1 31 to be made under this section. 1 32 Sec. 5. Section 422.13, subsection 1, unnumbered paragraph 1 33 1, Code 1997, is amended to read as follows: 1 34Except as provided in subsection 1A, aA resident or 1 35 nonresident of this state shall make a return, signed in 2 1 accordance with forms and rules prescribed by the director, if 2 2 any of the following are applicable: 2 3 Sec. 6. Section 422.13, subsection 1A, Code 1997, is 2 4 amended by striking the subsection. 2 5 Sec. 7. This Act applies retroactively to January 1, 1997, 2 6 for tax years beginning on or after that date. 2 7 EXPLANATION 2 8 In computing state net income for purposes of the state 2 9 individual income tax the starting point is federal adjusted 2 10 gross income before the federal net operating loss deduction. 2 11 The bill provides that $25,000 shall be deducted from the 2 12 federal adjusted gross income amount before determining net 2 13 income. The bill strikes the provision that states that 2 14 single filers making less than $9,000 and married filers 2 15 making less than $13,500 in net income do not have to pay tax 2 16 since both types of filers would be able to subtract up to 2 17 $25,000. 2 18 The bill applies retroactively to January 1, 1997, for tax 2 19 years beginning on or after that date. 2 20 LSB 2346SS 77 2 21 mg/cf/24
Text: SF00260 Text: SF00262 Text: SF00200 - SF00299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
Search: Senate Bills and Amendments (77th General Assembly)
© 1997 Cornell College and League of Women Voters of Iowa
Comments about this site or page? webmaster@legis.iowa.gov. Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Mar 12 09:10:14 CST 1997
URL: /DOCS/GA/77GA/Legislation/SF/00200/SF00261/970303.html
jhf