Text: HF00069 Text: HF00071 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 2001, 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, 2001, 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, 2001. 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, 2001, 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 1593HH 79
2 24 mg/cls/14
Text: HF00069 Text: HF00071 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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