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Text: SF00260                           Text: SF00262
Text: SF00200 - SF00299                 Text: SF Index
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Senate File 261

Partial Bill History

Bill Text

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 of
  1 14 the lump sum distribution subject to separate federal tax
  1 15 shall be included in net income for purposes of determining
  1 16 eligibility under the thirteen thousand five hundred dollar or
  1 17 less 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 34    Except as provided in subsection 1A, a A 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

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