Text: H02048 Text: H02050 Text: H02000 - H02099 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 757 as follows: 1 2 #1. Page 1, by inserting before line 1 the 1 3 following: 1 4 "DIVISION I 1 5 FEDERAL REBATES" 1 6 #2. Page 1, line 13, by inserting after the word 1 7 "This" the following: "division of this". 1 8 #3. Page 1, by inserting after line 15 the 1 9 following: 1 10 "DIVISION II 1 11 FEDERAL DEDUCTIBILITY 1 12 Sec.___. Section 422.4, subsection 1, paragraphs b 1 13 and c, Code 2001, are amended to read as follows: 1 14 b. "Cumulative inflation factor" means the product 1 15 of the annual inflation factor for the19882002 1 16 calendar year and all annual inflation factors for 1 17 subsequent calendar years as determined pursuant to 1 18 this subsection. The cumulative inflation factor 1 19 applies to all tax years beginning on or after January 1 20 1 of the calendar year for which the latest annual 1 21 inflation factor has been determined. 1 22 c. The annual inflation factor for the19882002 1 23 calendar year is one hundred percent. 1 24 Sec. ___. Section 422.5, subsection 1, paragraphs 1 25 a through i, Code 2001, are amended by striking the 1 26 paragraphs and inserting in lieu thereof the 1 27 following: 1 28 a. On all taxable income from zero through eight 1 29 thousand dollars, one and eighty-five hundredths 1 30 percent. 1 31 b. On all taxable income exceeding eight thousand 1 32 dollars but not exceeding forty thousand dollars, five 1 33 and three-tenths percent. 1 34 c. On all taxable income exceeding forty thousand 1 35 dollars but not exceeding sixty thousand dollars, six 1 36 and thirty-five hundredths percent. 1 37 d. On all taxable income exceeding sixty thousand 1 38 dollars, six and six-tenths percent. 1 39 Sec. ___. Section 422.5, subsection 1, paragraph 1 40 j, Code 2001, is amended to read as follows: 1 41j.e. (1) The tax imposed upon the taxable 1 42 income of a nonresident shall be computed by reducing 1 43 the amount determined pursuant to paragraphs "a" 1 44 through"i""d" by the amounts of nonrefundable 1 45 credits under this division and by multiplying this 1 46 resulting amount by a fraction of which the 1 47 nonresident's net income allocated to Iowa, as 1 48 determined in section 422.8, subsection 2, paragraph 1 49 "a", is the numerator and the nonresident's total net 1 50 income computed under section 422.7 is the 2 1 denominator. This provision also applies to 2 2 individuals who are residents of Iowa for less than 2 3 the entire tax year. 2 4 (2) The tax imposed upon the taxable income of a 2 5 resident shareholder in an S corporation which has in 2 6 effect for the tax year an election under subchapter S 2 7 of the Internal Revenue Code and carries on business 2 8 within and without the state may be computed by 2 9 reducing the amount determined pursuant to paragraphs 2 10 "a" through"i""d" by the amounts of nonrefundable 2 11 credits under this division and by multiplying this 2 12 resulting amount by a fraction of which the resident's 2 13 net income allocated to Iowa, as determined in section 2 14 422.8, subsection 2, paragraph "b", is the numerator 2 15 and the resident's total net income computed under 2 16 section 422.7 is the denominator. If a resident 2 17 shareholder has elected to take advantage of this 2 18 subparagraph, and for the next tax year elects not to 2 19 take advantage of this subparagraph, the resident 2 20 shareholder shall not reelect to take advantage of 2 21 this subparagraph for the three tax years immediately 2 22 following the first tax year for which the shareholder 2 23 elected not to take advantage of this subparagraph, 2 24 unless the director consents to the reelection. This 2 25 subparagraph also applies to individuals who are 2 26 residents of Iowa for less than the entire tax year. 2 27 This subparagraph shall not affect the amount of 2 28 the taxpayer's checkoff to the Iowa election campaign 2 29 fund under section 56.18, the checkoff for the fish 2 30 and game fund in section 456A.16, the credits from tax 2 31 provided in sections 422.10, 422.11A, and 422.12 and 2 32 the allocation of these credits between spouses if the 2 33 taxpayers filed separate returns or separately on 2 34 combined returns. 2 35 Sec. ___. Section 422.5, subsection 1, paragraph 2 36 k, Code 2001, is amended by relettering the paragraph 2 37 as paragraph f. 2 38 Sec. ___. Section 422.5, subsection 1, paragraph 2 39 k, unnumbered paragraph 1, Code 2001, is amended to 2 40 read as follows: 2 41 There is imposed upon every resident and 2 42 nonresident of this state, including estates and 2 43 trusts, the greater of the tax determined in 2 44 paragraphs "a" through"j""e" or the state 2 45 alternative minimum tax equal to seventy-five percent 2 46 of the maximum state individual income tax rate for 2 47 the tax year, rounded to the nearest one-tenth of one 2 48 percent, of the state alternative minimum taxable 2 49 income of the taxpayer as computed under this 2 50 paragraph. 3 1 Sec. ___. Section 422.5, subsection 5, Code 2001, 3 2 is amended to read as follows: 3 3 5. Upon determination of the latest cumulative 3 4 inflation factor, the director shall multiply each 3 5 dollar amount set forth in subsection 1, paragraphs 3 6 "a" through"i""d" of this section by this cumulative 3 7 inflation factor, shall round off the resulting 3 8 product to the nearest one dollar, and shall 3 9 incorporate the result into the income tax forms and 3 10 instructions for each tax year. 3 11 Sec. ___. Section 422.8, subsection 2, paragraph 3 12 a, Code 2001, is amended to read as follows: 3 13 a. Nonresident's net income allocated to Iowa is 3 14 the net income, or portion of net income, which is 3 15 derived from a business, trade, profession, or 3 16 occupation carried on within this state or income from 3 17 any property, trust, estate, or other source within 3 18 Iowa. However, income derived from a business, trade, 3 19 profession, or occupation carried on within this state 3 20 and income from any property, trust, estate, or other 3 21 source within Iowa shall not include distributions 3 22 from pensions, including defined benefit or defined 3 23 contribution plans, annuities, individual retirement 3 24 accounts, and deferred compensation plans or any 3 25 earnings attributable thereto so long as the 3 26 distribution is directly related to an individual's 3 27 documented retirement and received while the 3 28 individual is a nonresident of this state. If a 3 29 business, trade, profession, or occupation is carried 3 30 on partly within and partly without the state, only 3 31 the portion of the net income which is fairly and 3 32 equitably attributable to that part of the business, 3 33 trade, profession, or occupation carried on within the 3 34 state is allocated to Iowa for purposes of section 3 35 422.5, subsection 1, paragraph"j""e", and section 3 36 422.13 and income from any property, trust, estate, or 3 37 other source partly within and partly without the 3 38 state is allocated to Iowa in the same manner, except 3 39 that annuities, interest on bank deposits and 3 40 interest-bearing obligations, and dividends are 3 41 allocated to Iowa only to the extent to which they are 3 42 derived from a business, trade, profession, or 3 43 occupation carried on within the state. 3 44 Sec. ___. Section 422.8, subsection 4, Code 2001, 3 45 is amended to read as follows: 3 46 4. The amount of minimum tax paid to another state 3 47 or foreign country by a resident taxpayer of this 3 48 state from preference items derived from sources 3 49 outside of Iowa shall be allowed as a credit against 3 50 the tax computed under this division except that the 4 1 credit shall not exceed what the amount of state 4 2 alternative minimum tax would have been on the same 4 3 preference items which were taxed by the other state 4 4 or foreign country. The limitation on this credit 4 5 shall be computed according to the following formula: 4 6 The total of preference items earned outside of Iowa 4 7 and taxed by another state or foreign country shall be 4 8 divided by the total of preference items of the 4 9 resident taxpayer of Iowa. In computing this 4 10 quotient, those items excludable under section 422.5, 4 11 subsection 1, paragraph"k""f", subparagraph (1) 4 12 shall not be used in computing the preference items. 4 13 This quotient multiplied times the net state 4 14 alternative minimum tax as determined in section 4 15 422.5, subsection 1, paragraph"k""f" on the total of 4 16 preference items as if entirely earned in Iowa shall 4 17 be the maximum tax credit against the Iowa alternative 4 18 minimum tax. However, the maximum tax credit will not 4 19 be allowed to the extent that the minimum tax imposed 4 20 by the other state or foreign country is less than the 4 21 maximum tax credit computed above. 4 22 Sec. ___. Section 422.9, subsection 1, Code 2001, 4 23 as amended by 2001 Iowa Acts, Senate File 350, section 4 24 22, is amended to read as follows: 4 25 1. An optional standard deduction, after deduction 4 26 of federal income tax, equal to one thousand two 4 27 hundred thirty dollars for a married person who files 4 28 separately or a single person or equal to three 4 29 thousand thirty dollars for a husband and wife who 4 30 file a joint return, a surviving spouse, or an 4 31 unmarried head of household. The optional standard 4 32 deduction shall not exceed the amount remaining after 4 33 deduction of the federal income tax. The amount of 4 34 federal income taxes deducted shall not exceed the 4 35 amount as computed under subsection 2, paragraph "b". 4 36 Sec. ___. Section 422.9, subsection 2, paragraph 4 37 b, Code 2001, as amended by 2001 Iowa Acts, Senate 4 38 File 350, section 22, is amended by striking the 4 39 paragraph and inserting in lieu thereof the following: 4 40 b. Add the amount of federal income taxes paid or 4 41 accrued, as the case may be, to the extent the federal 4 42 tax payment is for a tax year beginning prior to 4 43 January 1, 2002. Subtract the amount of federal 4 44 income tax refunds received in a tax year to the 4 45 extent that the federal income tax was deducted on an 4 46 Iowa individual income tax return for a tax year 4 47 beginning prior to January 1, 2002. 4 48 Sec. ___. Section 422.11B, Code 2001, is amended 4 49 to read as follows: 4 50 422.11B MINIMUM TAX CREDIT. 5 1 1. There is allowed as a credit against the tax 5 2 determined in section 422.5, subsection 1, paragraphs 5 3 "a" through"j""e" for a tax year an amount equal to 5 4 the minimum tax credit for that tax year. 5 5 The minimum tax credit for a tax year is the 5 6 excess, if any, of the adjusted net minimum tax 5 7 imposed for all prior tax years beginning on or after 5 8 January 1, 1987, over the amount allowable as a credit 5 9 under this section for those prior tax years. 5 10 2. The allowable credit under subsection 1 for a 5 11 tax year shall not exceed the excess, if any, of the 5 12 tax determined in section 422.5, subsection 1, 5 13 paragraphs "a" through"j""e" over the state 5 14 alternative minimum tax as determined in section 5 15 422.5, subsection 1, paragraph"k""f". 5 16 The net minimum tax for a tax year is the excess, 5 17 if any, of the tax determined in section 422.5, 5 18 subsection 1, paragraph"k""f" for the tax year over 5 19 the tax determined in section 422.5, subsection 1, 5 20 paragraphs "a" through"j""e" for the tax year. 5 21 The adjusted net minimum tax for a tax year is the 5 22 net minimum tax for the tax year reduced by the amount 5 23 which would be the net minimum tax if the only item of 5 24 tax preference taken into account was that described 5 25 in paragraph (6) of section 57(a) of the Internal 5 26 Revenue Code. 5 27 Sec. ___. Section 422.13, subsection 1, paragraph 5 28 c, Code 2001, as amended by 2001 Iowa Acts, Senate 5 29 File 140, section 7, is amended to read as follows: 5 30 c. However, if that part of the net income of a 5 31 nonresident which is allocated to Iowa pursuant to 5 32 section 422.8, subsection 2, is less than one thousand 5 33 dollars the nonresident is not required to make and 5 34 sign a return except when the nonresident is subject 5 35 to the state alternative minimum tax imposed pursuant 5 36 to section 422.5, subsection 1, paragraph"k""f". 5 37 Sec. ___. Section 422.13, subsection 1A, Code 5 38 2001, as amended by 2001, Iowa Acts, Senate File 140, 5 39 section 7, is amended to read as follows: 5 40 1A. Notwithstanding any other provision in this 5 41 section, a resident of this state is not required to 5 42 make and file a return if the person's net income is 5 43 equal to or less than the appropriate dollar amount 5 44 listed in section 422.5, subsection 2, upon which tax 5 45 is not imposed. A nonresident of this state is not 5 46 required to make and file a return if the person's 5 47 total net income in section 422.5, subsection 1, 5 48 paragraph"j""e", is equal to or less than the 5 49 appropriate dollar amount provided in section 422.5, 5 50 subsection 2, upon which tax is not imposed. For 6 1 purposes of this subsection, the amount of a lump sum 6 2 distribution subject to separate federal tax shall be 6 3 included in net income for purposes of determining if 6 4 a resident is required to file a return and the 6 5 portion of the lump sum distribution that is allocable 6 6 to Iowa is included in total net income for purposes 6 7 of determining if a nonresident is required to make 6 8 and file a return. 6 9 Sec. ___. Section 422.21, unnumbered paragraph 5, 6 10 Code 2001, is amended to read as follows: 6 11 The director shall determine for the19892003 6 12 calendar year and each subsequent calendar year the 6 13 annual and cumulative inflation factors for each 6 14 calendar year to be applied to tax years beginning on 6 15 or after January 1 of that calendar year. The 6 16 director shall compute the new dollar amounts as 6 17 specified to be adjusted in section 422.5 by the 6 18 latest cumulative inflation factor and round off the 6 19 result to the nearest one dollar. The annual and 6 20 cumulative inflation factors determined by the 6 21 director are not rules as defined in section 17A.2, 6 22 subsection 11. The director shall determine for the 6 23 1990 calendar year and each subsequent calendar year 6 24 the annual and cumulative standard deduction factors 6 25 to be applied to tax years beginning on or after 6 26 January 1 of that calendar year. The director shall 6 27 compute the new dollar amounts of the standard 6 28 deductions specified in section 422.9, subsection 1, 6 29 by the latest cumulative standard deduction factor and 6 30 round off the result to the nearest ten dollars. The 6 31 annual and cumulative standard deduction factors 6 32 determined by the director are not rules as defined in 6 33 section 17A.2, subsection 11. 6 34 Sec. ___. EFFECTIVE AND APPLICABILITY DATES. This 6 35 Act takes effect January 1, 2002, for tax years 6 36 beginning on or after that date." 6 37 #4. Title page, by striking lines 1 through 3 and 6 38 inserting the following: "An Act relating to the 6 39 individual income tax by exempting from tax certain 6 40 federal tax rebates, eliminating the deduction for 6 41 federal income taxes paid, decreasing the tax rates, 6 42 and including effective and applicability date 6 43 provisions." 6 44 6 45 6 46 6 47 SHOULTZ of Black Hawk 6 48 6 49 6 50 7 1 HATCH of Polk 7 2 7 3 7 4 7 5 FALLON of Polk 7 6 7 7 7 8 7 9 FREVERT of Palo Alto 7 10 7 11 7 12 7 13 FOEGE of Linn 7 14 7 15 7 16 7 17 DOTZLER of Black Hawk 7 18 7 19 7 20 7 21 OSTERHAUS of Jackson 7 22 7 23 7 24 7 25 MURPHY of Dubuque 7 26 7 27 7 28 7 29 RICHARDSON of Warren 7 30 7 31 7 32 7 33 LENSING of Johnson 7 34 7 35 7 36 7 37 GREIMANN of Story 7 38 7 39 7 40 7 41 MASCHER of Johnson 7 42 7 43 7 44 7 45 KUHN of Floyd 7 46 7 47 7 48 7 49 WITT of Black Hawk 7 50 8 1 8 2 8 3 JOCHUM of Dubuque 8 4 HF 757.701 79 8 5 mg/cls
Text: H02048 Text: H02050 Text: H02000 - H02099 Text: H Index Bills and Amendments: General Index Bill History: General Index
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