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House Amendment 1563

Amendment Text

PAG LIN
  1  1    Amend House File 701 as follows:
  1  2    #1.  Page 2, by inserting after line 27 the
  1  3 following:
  1  4    "Sec.    .  Section 422.5, subsection 2, Code 2003,
  1  5 is amended to read as follows:
  1  6    2.  However, the tax shall not be imposed on a
  1  7 resident or nonresident whose net income, as defined
  1  8 in section 422.7, is thirteen fifteen thousand five
  1  9 hundred dollars or less in the case of married persons
  1 10 filing jointly or filing separately on a combined
  1 11 return, unmarried heads of household, and surviving
  1 12 spouses or nine eleven thousand dollars or less in the
  1 13 case of all other persons; but in the event that the
  1 14 payment of tax under this division would reduce the
  1 15 net income to less than thirteen fifteen thousand five
  1 16 hundred dollars or nine eleven thousand dollars as
  1 17 applicable, then the tax shall be reduced to that
  1 18 amount which would result in allowing the taxpayer to
  1 19 retain a net income of thirteen fifteen thousand five
  1 20 hundred dollars or nine eleven thousand dollars as
  1 21 applicable.  The preceding sentence does not apply to
  1 22 estates or trusts.  For the purpose of this
  1 23 subsection, the entire net income, including any part
  1 24 of the net income not allocated to Iowa, shall be
  1 25 taken into account.  For purposes of this subsection,
  1 26 net income includes all amounts of pensions or other
  1 27 retirement income received from any source which is
  1 28 not taxable under this division as a result of the
  1 29 government pension exclusions in section 422.7, or any
  1 30 other state law.  If the combined net income of a
  1 31 husband and wife exceeds thirteen fifteen thousand
  1 32 five hundred dollars, neither of them shall receive
  1 33 the benefit of this subsection, and it is immaterial
  1 34 whether they file a joint return or separate returns.
  1 35 However, if a husband and wife file separate returns
  1 36 and have a combined net income of thirteen fifteen
  1 37 thousand five hundred dollars or less, neither spouse
  1 38 shall receive the benefit of this paragraph, if one
  1 39 spouse has a net operating loss and elects to carry
  1 40 back or carry forward the loss as provided in section
  1 41 422.9, subsection 3.  A person who is claimed as a
  1 42 dependent by another person as defined in section
  1 43 422.12 shall not receive the benefit of this
  1 44 subsection if the person claiming the dependent has
  1 45 net income exceeding thirteen fifteen thousand five
  1 46 hundred dollars or nine eleven thousand dollars as
  1 47 applicable or the person claiming the dependent and
  1 48 the person's spouse have combined net income exceeding
  1 49 thirteen fifteen thousand five hundred dollars or nine
  1 50 eleven thousand dollars as applicable.
  2  1    In addition, if the married persons', filing
  2  2 jointly or filing separately on a combined return,
  2  3 unmarried head of household's, or surviving spouse's
  2  4 net income exceeds thirteen fifteen thousand five
  2  5 hundred dollars, the regular tax imposed under this
  2  6 division shall be the lesser of the maximum state
  2  7 individual income tax rate product of eight percent
  2  8 times the portion of the net income in excess of
  2  9 thirteen fifteen thousand five hundred dollars or the
  2 10 regular tax liability computed without regard to this
  2 11 sentence.  Taxpayers electing to file separately shall
  2 12 compute the alternate tax described in this paragraph
  2 13 using the total net income of the husband and wife.
  2 14 The alternate tax described in this paragraph does not
  2 15 apply if one spouse elects to carry back or carry
  2 16 forward the loss as provided in section 422.9,
  2 17 subsection 3."
  2 18    #2.  Page 3, by inserting after line 28 the
  2 19 following:
  2 20    "Sec.    .  INCOME TAX IMPLEMENTATION COMMITTEE.
  2 21    1.  On or before July 1, 2003, the department of
  2 22 revenue and finance, in consultation with the
  2 23 department of management, shall initiate and
  2 24 coordinate the establishment of an income tax
  2 25 implementation committee and provide staffing
  2 26 assistance by the committee.  The income tax
  2 27 implementation committee shall include representatives
  2 28 of the general assembly, the department of revenue and
  2 29 finance, the department of management, business tax
  2 30 groups, businesses in Iowa, groups representing Iowa
  2 31 taxpayers, certified public accountants, members of
  2 32 the general public, and other appropriate
  2 33 stakeholders.
  2 34    2.  The committee shall study and make
  2 35 recommendations relating to the imposition of new
  2 36 income tax rates, filing threshold, alternative
  2 37 minimum tax, treatment of current exemptions, credits,
  2 38 and deductions.  The committee shall also consider
  2 39 alternate sources of revenue for the general fund of
  2 40 the state to replace revenue as a result from general
  2 41 tax relief as provided for in this bill, including but
  2 42 not limited to, sales and use taxes.
  2 43    3.  The committee shall submit to the general
  2 44 assembly by January 1, 2004, and January 1, 2005, a
  2 45 report for each of those years resolving issues in
  2 46 subsection 2, and other related issues for
  2 47 implementation of the other provisions in this Act."
  2 48    #3.  Page 3, line 30, by striking the word "This"
  2 49 and inserting the following:  "Except as provided in
  2 50 subsection 3, this".
  3  1    #4.  Page 4, by inserting after line 3 the
  3  2 following;
  3  3    "3.  The section of this Act relating to the
  3  4 establishment of the income tax implementation
  3  5 committee, being deemed of immediate importance, takes
  3  6 effect up enactment."
  3  7    #5.  Title page, line 2, by inserting after the
  3  8 word "brackets" the following:  ", increasing the
  3  9 amounts below which the tax in not imposed,
  3 10 establishing an implementation committee,".  
  3 11  
  3 12  
  3 13                                
  3 14 J. K. VAN FOSSEN of Scott 
  3 15 HF 701.302 80
  3 16 mg/cf
     

Text: H01562                            Text: H01564
Text: H01500 - H01599                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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