Text: SF00367 Text: SF00369 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 DIVISION I – PERCENTAGE OF FEDERAL TAX LIABILITY 1 2 Section 1. Section 422.4, subsection 1, Code 1997, is 1 3 amended by striking the subsection and inserting in lieu 1 4 thereof the following: 1 5 1. "Adjusted federal income tax liability" means the 1 6 amount of federal income tax liability, as determined under 1 7 the Internal Revenue Code, subtitle A, chapter 1, subchapter 1 8 A, parts I (regular tax) and VI (alternative minimum tax), and 1 9 subchapter D, part I (lump sum distribution tax), for which 1 10 the taxpayer would have been liable, reduced by any federal 1 11 income tax credits that may apply, if the taxpayer had paid 1 12 federal income tax based on federal taxable income adjusted as 1 13 provided in section 422.7, subsections 1 and 2. 1 14 Sec. 2. Section 422.4, subsection 2, Code 1997, is amended 1 15 by striking the subsection. 1 16 Sec. 3. Section 422.4, Code 1997, is amended by adding the 1 17 following new subsection: 1 18 NEW SUBSECTION. 9A. "Net income" means the federal 1 19 taxable income as properly computed for federal income tax 1 20 purposes under the Internal Revenue Code with the adjustments 1 21 made in section 422.7, subsections 1 and 2. 1 22 Sec. 4. Section 422.4, subsection 16, Code 1997, is 1 23 amended by striking the subsection. 1 24 Sec. 5. Section 422.5, subsection 1, Code 1997, is amended 1 25 by striking the subsection and inserting in lieu thereof the 1 26 following: 1 27 1. a. A tax is imposed upon every resident and 1 28 nonresident individual or estate and trust, which tax is 1 29 levied and shall be collected and paid annually upon and with 1 30 respect to net income at the rate of twenty-seven percent of 1 31 the taxpayer's adjusted federal income tax liability. 1 32 b. However, the tax imposed upon the income of a 1 33 nonresident shall be computed by multiplying the amount of tax 1 34 determined under paragraph "a" by a fraction of which the 1 35 nonresident's net income allocated to Iowa, as determined in 2 1 section 422.8, subsection 2, is the numerator and the 2 2 nonresident's total net income is the denominator. This 2 3 provision also applies to individuals who are residents of 2 4 Iowa for less than the entire tax year. 2 5 c. (1) The tax imposed upon the net income of a resident 2 6 shareholder in a value-added corporation which has in effect 2 7 for the tax year an election under subchapter S of the 2 8 Internal Revenue Code and carries on business within and 2 9 without the state may be computed by reducing the amount 2 10 determined pursuant to paragraph "a" by multiplying the amount 2 11 by a fraction of which the resident's net income allocated to 2 12 Iowa, as determined in section 422.8, subsection 2, paragraph 2 13 "b", is the numerator and the resident's total net income is 2 14 the denominator. This provision also applies to individuals 2 15 who are residents of Iowa for less than the entire tax year. 2 16 (2) In order for a resident shareholder in a value-added 2 17 corporation which has in effect for the tax year an election 2 18 under subchapter S of the Internal Revenue Code and carries on 2 19 business within and without the state, to claim the benefits 2 20 of apportionment of income of the value-added corporation, the 2 21 taxpayer must completely fill out the return, determine the 2 22 taxpayer's income tax liability without the benefit of 2 23 apportionment of the value-added corporation's income, and pay 2 24 the amount of tax owed. The taxpayer shall recompute the 2 25 taxpayer's income tax liability, by applying the provisions of 2 26 this lettered paragraph on a special return. This special 2 27 return shall be filed under rules of the director and 2 28 constitutes a claim for refund of the difference between the 2 29 amount of tax the taxpayer paid as determined without the 2 30 provisions of this lettered paragraph and the amount of tax 2 31 determined with the provisions of this lettered paragraph. 2 32 (3) This lettered paragraph shall not affect the amount of 2 33 the taxpayer's checkoff to the Iowa election campaign fund 2 34 under section 56.18, and the checkoff for the fish and game 2 35 fund in section 456A.16. 3 1 (4) For any tax year, the aggregate amount of refund 3 2 claims that shall be paid pursuant to this lettered paragraph 3 3 shall not exceed five million dollars. If, for a tax year, 3 4 the aggregate amount of refund claims filed pursuant to this 3 5 lettered paragraph exceeds five million dollars, each claim 3 6 for refund shall be paid on a pro rata basis so that the 3 7 aggregate amount of refund claims does not exceed five million 3 8 dollars. In the case where refund claims are not paid in 3 9 full, the amount of the refund to which the taxpayer is 3 10 entitled under this lettered paragraph is the pro rata amount 3 11 that was paid and the taxpayer is not entitled to a refund of 3 12 the unpaid portion and is not entitled to carry that amount 3 13 forward or backward to another tax year. Taxpayers shall not 3 14 use refunds as estimated payments for the succeeding tax year. 3 15 Taxpayers whose tax years begin on January 1 must file their 3 16 refund claims by October 31 of the calendar year following the 3 17 end of their tax year to be eligible for refunds. Taxpayers 3 18 whose tax years begin on a date other than January 1 must file 3 19 their refund claims by the end of the tenth month following 3 20 the end of their tax years to be eligible. The department 3 21 shall determine on February 1 of the second succeeding 3 22 calendar year if the total amount of claims for refund exceeds 3 23 five million dollars for the tax year. Notwithstanding any 3 24 other provision, interest shall not be due on any refund 3 25 claims that are paid by the last day of February of the second 3 26 succeeding calendar year. If the claim is not payable on 3 27 February 1 of the second succeeding calendar year, because the 3 28 taxpayer is a fiscal year filer, then the amount of the claim 3 29 allowed shall be in the same ratio as the refund claims 3 30 available on February 1 of the second succeeding calendar 3 31 year. These claims shall be funded by moneys appropriated for 3 32 payment of individual income tax refunds. 3 33 Sec. 6. Section 422.5, subsection 2, unnumbered paragraph 3 34 1, Code 1997, is amended to read as follows: 3 35 However, the tax shall not be imposed on a resident or 4 1 nonresident whose net income, as defined in section 422.7,is 4 2 thirteen thousand five hundred dollars or less in the case of 4 3 married persons filing jointlyor filing separately on a4 4combined return, unmarried heads of household, and surviving 4 5 spouses or nine thousand dollars or less in the case of all 4 6 other persons; but in the event that. If the payment of tax 4 7 under this division would reduce the net income of a resident 4 8 or nonresident to less than thirteen thousand five hundred 4 9 dollars or nine thousand dollars as applicable, then the tax 4 10 shall be reduced to that amount which would result in allowing 4 11 the taxpayer to retain a net income of thirteen thousand five 4 12 hundred dollars or nine thousand dollars as applicable. The 4 13 precedingsentence doessentences do not apply to estates or 4 14 trusts. For the purpose of this subsection, the entire net 4 15 income, including any part of the net income not allocated to 4 16 Iowa, shall be taken into account. For purposes of this 4 17 subsection,net income"net income" includes all amounts of 4 18 pensions or other retirement income received from any source 4 19 which is not taxable under this division as a result ofthe4 20government pension exclusions in section 422.7, orany other 4 21 state law. If the combined net income of a husband and wife 4 22 exceeds thirteen thousand five hundred dollars, neither of 4 23 them shall receive the benefit of this subsection, and it is 4 24 immaterial whether they file a joint return or separate 4 25 returns. However, if a husband and wife file separate returns 4 26 and have a combined net income of thirteen thousand five 4 27 hundred dollars or less, neither spouse shall receive the 4 28 benefit of this paragraph, if one spouse has a net operating 4 29 loss and elects to carry back or carry forward the loss as 4 30 provided insection 422.9, subsection 3the Internal Revenue 4 31 Code. A person who is claimed as a dependent, as defined in 4 32 the Internal Revenue Code, by another personas defined in4 33section 422.12shall not receive the benefit of this 4 34 subsection if the person claiming the dependent has net income 4 35 exceeding thirteen thousand five hundred dollars or nine 5 1 thousand dollars as applicable or the person claiming the 5 2 dependent and the person's spouse have combined net income 5 3 exceeding thirteen thousand five hundred dollars or nine 5 4 thousand dollars as applicable. 5 5 Sec. 7. Section 422.5, subsection 2, unnumbered paragraph 5 6 2, Code 1997, is amended by striking the unnumbered paragraph. 5 7 Sec. 8. Section 422.5, subsections 3 through 12, Code 5 8 1997, are amended by striking the subsections. 5 9 Sec. 9. Section 422.6, Code 1997, is amended by striking 5 10 the section and inserting in lieu thereof the following: 5 11 422.6 INCOME FROM ESTATES OR TRUSTS. 5 12 The tax imposed by section 422.5 applies to and is a charge 5 13 against estates and trusts with respect to their net income, 5 14 and the rate is the same as that applicable to individuals. 5 15 The fiduciary shall make the return of income for the estate 5 16 or trust for which the fiduciary acts, whether the income is 5 17 taxable to the estate or trust or to the beneficiaries. 5 18 Sec. 10. Section 422.7, Code 1997, is amended by striking 5 19 the section and inserting in lieu thereof the following: 5 20 422.7 ADJUSTMENTS TO FEDERAL TAXABLE INCOME. 5 21 In determining the taxpayer's adjusted federal income tax 5 22 liability, the taxpayer's federal taxable income shall be 5 23 adjusted as provided in subsections 1 and 2. 5 24 1. Federal taxable income is increased by the following: 5 25 a. Interest and dividends from foreign securities and from 5 26 securities of states and other political subdivisions exempt 5 27 from federal income tax under the Internal Revenue Code to the 5 28 extent not otherwise exempted by this state. 5 29 b. Interest and dividends from regulated investment 5 30 companies exempt from federal income tax under the Internal 5 31 Revenue Code. 5 32 2. Federal taxable income is decreased by the following: 5 33 a. Interest and dividends from federal securities. The 5 34 amount decreased shall be reduced by any interest on 5 35 indebtedness incurred to carry the federal securities and by 6 1 any expenses incurred in the production of interest and 6 2 dividends from the federal securities to the extent deductible 6 3 in determining federal taxable income. 6 4 b. The loss on the sale or exchange of a share of a 6 5 regulated investment company held for six months or less to 6 6 the extent the loss was disallowed under section 852(b)(4)(B) 6 7 of the Internal Revenue Code. 6 8 Sec. 11. Section 422.8, subsections 2, 3, and 4, Code 6 9 1997, are amended to read as follows: 6 10 2. a. Nonresident's net income allocated to Iowa is the 6 11 net income, or portion of net income, which is derived from a 6 12 business, trade, profession, or occupation carried on within 6 13 this state or income from any property, trust, estate, or 6 14 other source within Iowa. However, income derived from a 6 15 business, trade, profession, or occupation carried on within 6 16 this state and income from any property, trust, estate, or 6 17 other source within Iowa shall not include distributions from 6 18 pensions, including defined benefit or defined contribution 6 19 plans, annuities, individual retirement accounts, and deferred 6 20 compensation plans or any earnings attributable thereto so 6 21 long as the distribution is directly related to an 6 22 individual's documented retirement and received while the 6 23 individual is a nonresident of this state. If a business, 6 24 trade, profession, or occupation is carried on partly within 6 25 and partly without the state, only the portion of the net 6 26 income which is fairly and equitably attributable to that part 6 27 of the business, trade, profession, or occupation carried on 6 28 within the state is allocated to Iowa for purposes of section 6 29 422.5, subsection 1, paragraph"j""a", and section 422.13 and 6 30 income from any property, trust, estate, or other source 6 31 partly within and partly without the state is allocated to 6 32 Iowa in the same manner, except that annuities, interest on 6 33 bank deposits and interest-bearing obligations, and dividends 6 34 are allocated to Iowa only to the extent to which they are 6 35 derived from a business, trade, profession, or occupation 7 1 carried on within the state. 7 2 b. A resident's income allocable to Iowa is the net income 7 3determined under section 422.7reduced by items of income and 7 4 expenses from a subchapter S corporation which is a value- 7 5 added corporation that carries on business within and without 7 6 the state when those items of income and expenses pass 7 7 directly to the shareholders under provisions of the Internal 7 8 Revenue Code. These items of income and expenses are 7 9 increased by the greater of the following: 7 10 (1) The net income or loss of the corporation which is 7 11 fairly and equitably attributable to this state under section 7 12 422.33, subsections 2 and 3. 7 13 (2) Any cash or the value of property distributions which 7 14 are made only to the extent that they are paid from income 7 15 upon which Iowa income tax has not been paid, as determined 7 16 under rules of the director, reduced by fifty percent of the 7 17 amount of any of these distributions that are made to enable 7 18 the shareholder to pay federal income tax on items of income, 7 19 loss, and expenses from the corporation. 7 20 3.TaxableNet income of resident and nonresident estates 7 21 and trusts shall be allocated in the same manner as 7 22 individuals. 7 23 4. The amount of minimum tax paid to another state or 7 24 foreign country by a resident taxpayer of this state from 7 25 preference items derived from sources outside of Iowa shall be 7 26 allowed as a credit against the tax computed under this 7 27 division except that the credit shall not exceedwhatthe 7 28 product of the state tax rate times the amount ofstatethe 7 29 federal alternative minimum taxwould have beenon the same 7 30 preference items which were taxed by the other state or 7 31 foreign country. The limitation on this credit shall be 7 32 computed according to the following formula: The total of 7 33 preference items earned outside of Iowa and taxed by another 7 34 state or foreign country shall be divided by the total of 7 35 preference items of the resident taxpayer of Iowa.In8 1computing this quotient, those items excludable under section8 2422.5, subsection 1, paragraph "k", subparagraph (1) shall not8 3be used in computing the preference items.This quotient 8 4 multipliedtimesby thenet statefederal alternative minimum 8 5 taxas determined in section 422.5, subsection 1, paragraph8 6"k"on the total of preference items as if entirely earned in 8 7 Iowa multiplied by the state tax rate shall be the maximum tax 8 8 creditagainst the Iowa alternative minimum tax. However, the 8 9 maximum tax creditwillshall not be allowed to the extent 8 10 that the minimum tax imposed by the other state or foreign 8 11 country is less than the maximum tax credit otherwise computed 8 12 above. 8 13 Sec. 12. Section 422.13, subsection 1, unnumbered 8 14 paragraph 1, Code 1997, is amended to read as follows: 8 15Except as provided in subsection 1A, aA resident or 8 16 nonresident of this state shall make a return, signed in 8 17 accordance with forms and rules prescribed by the director, if 8 18 any of the following are applicable: 8 19 Sec. 13. Section 422.13, subsection 1A, Code 1997, is 8 20 amended by striking the subsection. 8 21 Sec. 14. Section 422.14, subsection 1, Code 1997, is 8 22 amended to read as follows: 8 23 1. A fiduciary subject to taxation under this division, as 8 24 provided in section 422.6, shall make a return, signed in 8 25 accordance with forms and rules prescribed by the director, 8 26 for the individual, estate, or trust for whom or for which the 8 27 fiduciary acts, if thetaxablenet income thereof amounts to 8 28 six hundred dollars or more. A nonresident fiduciary shall 8 29 file a copy of the federal income tax return for the current 8 30 tax year with the return required by this section. 8 31 Sec. 15. Section 422.16, subsection 1, unnumbered 8 32 paragraph 1, Code 1997, is amended to read as follows: 8 33 Every withholding agent and every employer as defined in 8 34 this chapter and further defined in the Internal Revenue Code, 8 35 with respect to income tax collected at source, making payment 9 1 of wages to a nonresident employee working in Iowa, or to a 9 2 resident employee, shall deduct and withhold from the wages an 9 3 amount which will approximate the employee's annual tax 9 4 liability on a calendar year basis, calculated on the basis of 9 5 tables to be prepared by the department and schedules or 9 6 percentage rates, based on the wages, to be prescribed by the 9 7 department. Every employee or other person shall declare to 9 8 the employer or withholding agent the number of the employee's 9 9 or other person's personal exemptions and dependency 9 10 exemptions or credits to be used in applying the tables and 9 11 schedules or percentage rates. However, no greater number of 9 12 personal or dependency exemptions or credits may be declared 9 13 by the employee or other person than the number to which the 9 14 employee or other person is entitled except as allowed under 9 15 section 3402(m)(1) of the Internal Revenue Codeand as allowed9 16for the child and dependent care credit provided in section9 17422.12C. The claiming of exemptions or credits in excess of 9 18 entitlement is a serious misdemeanor. 9 19 Sec. 16. Section 422.21, unnumbered paragraphs 5 and 6, 9 20 Code 1997, are amended by striking the unnumbered paragraphs. 9 21 Sec. 17. Section 422.21, unnumbered paragraph 7, Code 9 22 1997, is amended to read as follows: 9 23 If married taxpayers file a joint returnor file separately9 24on a combined return in accordance with rules prescribed by9 25the director, both spouses are jointly and severally liable 9 26 for the total tax due on the return, except when one spouse is 9 27 considered to be an innocent spouse under criteria established 9 28 pursuant to section 6013(e) of the Internal Revenue Code. 9 29 Sec. 18. Sections 422.9, 422.10, 422.11A, 422.11B, 422.12, 9 30 422.12B, and 422.12C, Code 1997, are repealed. 9 31 DIVISION II – COORDINATING AMENDMENTS 9 32 Sec. 19. Section 56.2, subsection 19, Code 1997, is 9 33 amended to read as follows: 9 34 19. "State income tax liability" means the state 9 35 individual income tax imposed under section 422.5reduced by10 1the sum of the deductions from the computed tax as provided10 2under section 422.12. 10 3 Sec. 20. Section 96.3, subsection 4, Code 1997, is amended 10 4 to read as follows: 10 5 4. DETERMINATION OF BENEFITS. With respect to benefit 10 6 years beginning on or after July 1, 1983, an eligible 10 7 individual's weekly benefit amount for a week of total 10 8 unemployment shall be an amount equal to the following 10 9 fractions of the individual's total wages in insured work paid 10 10 during that quarter of the individual's base period in which 10 11 such total wages were highest; the director shall determine 10 12 annually a maximum weekly benefit amount equal to the 10 13 following percentages, to vary with the number of dependents, 10 14 of the statewide average weekly wage paid to employees in 10 15 insured work which shall be effective the first day of the 10 16 first full week in July: 10 17 If the The weekly Subject to the 10 18 number of benefit amount following maxi- 10 19 dependents shall equal the mum percentage 10 20 is: following frac- of the statewide 10 21 tion of high average weekly 10 22 quarter wages: wage: 10 23 0 1/23 53% 10 24 1 1/22 55% 10 25 2 1/21 57% 10 26 3 1/20 60% 10 27 4 or more 1/19 65% 10 28 The maximum weekly benefit amount, if not a multiple of one 10 29 dollar shall be rounded to the lower multiple of one dollar. 10 30 However, until such time as sixty-five percent of the 10 31 statewide average weekly wage exceeds one hundred ninety 10 32 dollars, the maximum weekly benefit amounts shall be 10 33 determined using the statewide average weekly wage computed on 10 34 the basis of wages reported for calendar year 1981. As used 10 35 in this section "dependent" means dependent as definedin11 1section 422.12, subsection 1, paragraph "c"for state 11 2 individual income tax purposes, as if the individual claimant 11 3 was a taxpayer, except that an individual claimant's 11 4 nonworking spouse shall be deemed to be a dependent under this 11 5 section. "Nonworking spouse" means a spouse who does not earn 11 6 more than one hundred twenty dollars in gross wages in one 11 7 week. 11 8 Sec. 21. Section 216B.3, subsection 15, Code 1997, is 11 9 amended to read as follows: 11 10 15. Develop a plan to provide telephone yellow pages 11 11 information without charge to persons declared to be blind 11 12under the standards in section 422.12, subsection 1, paragraph11 13"e". The department may apply for federal funds to support 11 14 the service. The program shall be limited in scope by the 11 15 availability of funds. For the purposes of this subsection, 11 16 an individual is blind only if the individual's central visual 11 17 acuity does not exceed twenty-two hundredths in the better eye 11 18 with correcting lenses, or if the individual's visual acuity 11 19 is greater than twenty-two hundredths but is accompanied by a 11 20 limitation in the fields of vision such that the widest 11 21 diameter of the visual field subtends an angle no greater than 11 22 twenty degrees. 11 23 Sec. 22. Section 257.21, unnumbered paragraph 2, Code 11 24 1997, is amended to read as follows: 11 25 The instructional support income surtax shall be imposed on 11 26 the state individual income tax for the calendar year during 11 27 which the school's budget year begins, or for a taxpayer's 11 28 fiscal year ending during the second half of that calendar 11 29 year and after the date the board adopts a resolution to 11 30 participate in the program or the first half of the succeeding 11 31 calendar year, and shall be imposed on all individuals 11 32 residing in the school district on the last day of the 11 33 applicable tax year. As used in this section, "state 11 34 individual income tax" means the taxes computed under section 11 35 422.5, less the credits allowed in sections 422.11A, 422.11B,12 1422.11C, 422.12, and 422.12B. 12 2 Sec. 23. Section 421.17, subsection 21, paragraph b, 12 3 subparagraph (6), Code 1997, is amended to read as follows: 12 4 (6) Upon the request of a debtor or a debtor's spouse to 12 5 the child support recovery unit, the foster care recovery 12 6 unit, or the investigations division of the department of 12 7 inspections and appeals, filed within fifteen days from the 12 8 mailing of the notice of entitlement to a refund or rebate, 12 9 and upon receipt of the full name and social security number 12 10 of the debtor's spouse, the unit or division shall notify the 12 11 department of revenue and finance of the request to divide a 12 12 joint income tax refund or rebate. The department of revenue 12 13 and finance shall upon receipt of the notice divide a joint 12 14 income tax refund or rebate between the debtor and the 12 15 debtor's spouse in proportion to each spouse's net income as 12 16determined under section 422.7defined in section 422.4. 12 17 Sec. 24. Section 421.17, subsection 23, paragraph f, Code 12 18 1997, is amended to read as follows: 12 19 f. Upon the timely request of a defaulter or a defaulter's 12 20 spouse to the college student aid commission and upon receipt 12 21 of the full name and social security number of the defaulter's 12 22 spouse, the commission shall notify the department of revenue 12 23 and finance of the request to divide a joint income tax refund 12 24 or rebate. The department of revenue and finance shall upon 12 25 receipt of the notice divide a joint income tax refund or 12 26 rebate between the defaulter and the defaulter's spouse in 12 27 proportion to each spouse's net income asdetermined under12 28section 422.7defined in section 422.4. 12 29 Sec. 25. Section 421.17, subsection 25, paragraph e, Code 12 30 1997, is amended to read as follows: 12 31 e. Upon the request of a debtor or a debtor's spouse to 12 32 the department, filed within fifteen days from the mailing of 12 33 the notice of entitlement to a refund or rebate, and upon 12 34 receipt of the full name and social security number of the 12 35 debtor's spouse, the department shall divide a joint income 13 1 tax refund or rebate between the debtor and the debtor's 13 2 spouse in proportion to each spouse's net income asdetermined13 3under section 422.7defined in section 422.4. 13 4 Sec. 26. Section 422.32, unnumbered paragraph 2, Code 13 5 1997, is amended to read as follows: 13 6 The words, terms, and phrases defined in division II, 13 7 section 422.4, subsections 4 to 6, 8, 9, 13,and15to, and 13 8 17, when used in this division, shall have the meanings 13 9 ascribed to them in said section except where the context 13 10 clearly indicates a different meaning. 13 11 Sec. 27. Section 422D.2, Code 1997, is amended to read as 13 12 follows: 13 13 422D.2 LOCAL INCOME SURTAX. 13 14 A county may impose by ordinance a local income surtax as 13 15 provided in section 422D.1 at the rate set by the board of 13 16 supervisors, of up to one percent, on the state individual 13 17 income tax of each individual residing in the county at the 13 18 end of the individual's applicable tax year. However, the 13 19 cumulative total of the percents of income surtax imposed on 13 20 any taxpayer in the county shall not exceed twenty percent. 13 21 The reason for imposing the surtax and the amount needed shall 13 22 be set out in the ordinance. The surtax rate shall be set to 13 23 raise only the amount needed. For purposes of this section, 13 24 "state individual income tax" means the tax computed under 13 25 section 422.5, less the credits allowed in sections 422.11A,13 26422.11B, 422.11C, 422.12, and 422.12B. 13 27 Sec. 28. Section 425.17, subsection 7, Code 1997, is 13 28 amended to read as follows: 13 29 7. "Income" means the sum of Iowa net income as defined in 13 30 section422.7422.4, plus all of the following to the extent 13 31 not already included in Iowa net income: capital gains, 13 32 alimony, child support money, cash public assistance and 13 33 relief, except property tax relief granted under this 13 34 division, amount of in-kind assistance for housing expenses, 13 35 the gross amount of any pension or annuity, including but not 14 1 limited to railroad retirement benefits, payments received 14 2 under the federal Social Security Act, except child insurance 14 3 benefits received by a member of the claimant's household, and 14 4 all military retirement and veterans' disability pensions, 14 5 interest received from the state or federal government or any 14 6 of its instrumentalities, workers' compensation and the gross 14 7 amount of disability income or "loss of time" insurance. 14 8 "Income" does not include gifts from nongovernmental sources, 14 9 or surplus foods or other relief in kind supplied by a 14 10 governmental agency. In determining income, net operating 14 11 losses and net capital losses shall not be considered. 14 12 Sec. 29. Section 450.4, subsection 5, Code 1997, is 14 13 amended to read as follows: 14 14 5. On the value of that portion of installment payments 14 15 which will be includable as net income as defined in section 14 16422.7422.4 as received by a beneficiary under an annuity 14 17 which was purchased under an employees pension or retirement 14 18 plan. 14 19 Sec. 30. Section 476.6, subsection 1, unnumbered paragraph 14 20 2, Code 1997, is amended to read as follows: 14 21 A subscriber of a telephone exchange or service, who is 14 22 declared to be legally blindunder section 422.12, subsection14 231, paragraph "e",is exempt from any charges for telephone 14 24 directory assistance that may be approved by the board. For 14 25 the purposes of this paragraph, an individual is legally blind 14 26 only if the individual's central visual acuity does not exceed 14 27 twenty-two hundredths in the better eye with correcting 14 28 lenses, or if the individual's visual acuity is greater than 14 29 twenty-two hundredths but is accompanied by a limitation in 14 30 the fields of vision such that the widest diameter of the 14 31 visual field subtends an angle no greater than twenty degrees. 14 32 Sec. 31. Section 541A.2, subsection 7, unnumbered 14 33 paragraph 1, Code 1997, is amended to read as follows: 14 34 An individual development account closed in accordance with 14 35 this subsection is not subject to the limitations and benefits 15 1 provided by this chapter but is subject to state tax in 15 2 accordance with the provisions ofsection 422.7, subsection15 328, andsection 450.4, subsection 6. An individual 15 4 development account may be closed for any of the following 15 5 reasons: 15 6 Sec. 32. Section 514A.3, subsection 2, Code 1997, is 15 7 amended by striking the subsection. 15 8 DIVISION III – EFFECTIVE AND APPLICABILITY DATE PROVISIONS 15 9 Sec. 33. This Act takes effect January 1, 1998, and 15 10 applies to tax years beginning on or after January 1, 1998. 15 11 EXPLANATION 15 12 Division I of this bill makes the state individual income 15 13 tax equal to 27 percent of the taxpayer's adjusted federal 15 14 income tax liability less federal credits allowed and repeals 15 15 all the individual Iowa income tax credits and deductions 15 16 including federal tax deductibility. The federal income tax 15 17 liability is adjusted by determining what the federal 15 18 liability would be if interest and dividends from federal 15 19 securities were not taxed and interest and dividends from 15 20 state and foreign securities were taxed. 15 21 Division II of this bill contains coordinating amendments 15 22 as a result of the change in the state individual income tax. 15 23 The bill takes effect January 1, 1998, and applies to tax 15 24 years beginning on or after that date. 15 25 LSB 2462XS 77 15 26 mg/sc/14.1
Text: SF00367 Text: SF00369 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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