Text: HF00023 Text: HF00025 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.7, subsection 31, Code 2003, is 1 2 amended to read as follows: 1 3 31. For a person who is disabled, or is fifty-five years 1 4 of age or older, or is the surviving spouse of an individual 1 5 or a survivor having an insurable interest in an individual 1 6 who would have qualified for the exemption under this 1 7 subsection for the tax year, subtract, to the extent included, 1 8 the total amount of a governmental or other pension or 1 9 retirement pay, including, but not limited to, defined benefit 1 10 or defined contribution plans, annuities, individual 1 11 retirement accounts, plans maintained or contributed to by an 1 12 employer, or maintained or contributed to by a self-employed 1 13 person as an employer, and deferred compensation plans or any 1 14 earnings attributable to the deferred compensation plans, up 1 15 to a maximum of six thousand dollars for a person, other than 1 16 a husband or wife, who files a separate state income tax 1 17 return and up to a maximum of twelve thousand dollars for a 1 18 husband and wife who file a joint state income tax return. 1 19 For a tax year beginning in the 2003 calendar year, subtract, 1 20 to the extent included, up to a maximum of nine thousand 1 21 dollars for a person, other than a husband or wife, who files 1 22 a separate state income tax return and up to a maximum of 1 23 eighteen thousand dollars for a husband and wife who file a 1 24 joint state income tax return. For a tax year beginning in 1 25 the 2004 calendar year, subtract, to the extent included, up 1 26 to a maximum of twelve thousand dollars for a person, other 1 27 than a husband or wife, who files a separate state income tax 1 28 return and up to a maximum of twenty-four thousand dollars for 1 29 a husband and wife who file a joint state income tax return. 1 30 For a tax year beginning in the 2005 calendar year, and 1 31 subsequent tax years, subtract, to the extent included, the 1 32 entire amount of a governmental or other pension or retirement 1 33 pay, including, but not limited to, defined benefit or defined 1 34 contribution plans, annuities, individual retirement accounts, 1 35 plans maintained or contributed to by an employer, or 2 1 maintained or contributed to by a self-employed person as an 2 2 employer, and deferred compensation plans or any earnings 2 3 attributable to the deferred compensation plans. However, a 2 4 surviving spouse who is not disabled or fifty-five years of 2 5 age or older can only exclude the amount of pension or 2 6 retirement pay received as a result of the death of the other 2 7 spouse. A husband and wife filing separate state income tax 2 8 returns or separately on a combined state return are allowed a 2 9 combined maximum exclusion under this subsection of up to 2 10twelve thousand dollarsthe amount allowed for a husband and 2 11 wife who file a joint state income tax return. Thetwelve2 12thousand dollarexclusion shall be allocated to the husband or 2 13 wife in the proportion that each spouse's respective pension 2 14 and retirement pay received bears to total combined pension 2 15 and retirement pay received. 2 16 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 2 17 retroactively to January 1, 2003, for tax years beginning on 2 18 or after that date. 2 19 EXPLANATION 2 20 This bill provides a phaseout of the state income tax on 2 21 pension or retirement pay. Currently, a single filer is 2 22 allowed to exclude $6,000 of pension or retirement pay and 2 23 joint filers are allowed to exclude $12,000 of pension or 2 24 retirement pay for state income tax purposes. The bill allows 2 25 an exclusion of $9,000 and $18,000, respectively, for tax 2 26 years beginning in the 2003 calendar year, and an exclusion of 2 27 $12,000 and $24,000, respectively, for tax years beginning in 2 28 the 2004 calendar year. For tax years beginning in the 2005 2 29 calendar year, and subsequent tax years, the bill provides an 2 30 exclusion for state income tax purposes of the total amount of 2 31 pension or retirement pay for single and joint filers. 2 32 The bill provides that a husband and wife filing separate 2 33 returns or filing separately on a combined return are allowed 2 34 a combined maximum exclusion of up to the amount allowed for 2 35 the tax year for a husband and wife who file a joint return. 3 1 The bill applies retroactively to January 1, 2003, for tax 3 2 years beginning on or after that date. 3 3 LSB 1144YH 80 3 4 sc/sh/8
Text: HF00023 Text: HF00025 Text: HF00000 - HF00099 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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