Text: HF00029 Text: HF00031 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.73, Code 1999, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 4. 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, 1999, 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 must be filed separately from any income tax return and a 1 15 refund shall not be allowed as a credit for income taxes owed. 1 16 A claim must be filed between the effective date of this Act 1 17 and October 31, 1999. 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 must be made on claim forms to be made 1 22 available by the department. In order for a taxpayer to have 1 23 a valid refund claim, the taxpayer must supply legible copies 1 24 of documents the director deems necessary to show entitlement 1 25 to the refund, including but not limited to income tax forms 1 26 and W-2P forms, which will establish the state income tax that 1 27 was paid on the federal pension benefits for the tax years in 1 28 question. The burden of proof is on the taxpayer to show that 1 29 the claim for refund is valid. Estates are not entitled to 1 30 file a claim for refund under this subsection, except a spouse 1 31 of a deceased taxpayer who was the spouse of the taxpayer when 1 32 the unconstitutional tax was imposed may file a claim for 1 33 refund without reopening the deceased taxpayer's estate. If a 1 34 taxpayer has filed a claim under this subsection and 1 35 subsequently dies before receipt of the refund, the taxpayer's 2 1 estate is entitled to receipt of any valid refund claim. 2 2 The department shall make a reasonable attempt to notify 2 3 individuals who are entitled to a refund under this 2 4 subsection. 2 5 Sec. 2. EFFECTIVE DATE. This Act, being deemed of 2 6 immediate importance, takes effect upon enactment. 2 7 EXPLANATION 2 8 A 1993 Iowa supreme court decision held that retired 2 9 federal employees could retroactively receive a refund of 2 10 state individual income taxes unlawfully imposed on their 2 11 pensions if the refund claim was timely filed. This bill 2 12 provides that a claim filed by October 31, 1999, is timely 2 13 filed for taxes imposed for the 1985, 1986, 1987, and 1988 tax 2 14 years. The taxpayer is entitled to 100 percent of the refund 2 15 without interest. To claim a refund, the taxpayer must submit 2 16 adequate evidence, as designated by the director of revenue 2 17 and finance, showing the taxpayer's entitlement to the refund. 2 18 The claim is to be filed separately from any state income tax 2 19 return and no credit for income taxes owed is allowed. The 2 20 department shall attempt to notify individuals who are 2 21 entitled to a refund. 2 22 The bill takes effect upon enactment. 2 23 LSB 1291HH 78 2 24 mg/sc/14
Text: HF00029 Text: HF00031 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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