Text: HSB00292                          Text: HSB00294
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index



House Study Bill 293

Bill Text

PAG LIN
  1  1    Section 1.  Section 533.24, Code 2003, is amended to read
  1  2 as follows:
  1  3    533.24  TAXATION AND OTHER ANNUAL STATE FEES.
  1  4    1.  A credit union shall be deemed an institution for
  1  5 savings and is subject to taxation only as to its real estate
  1  6 and moneys and credits.  The shares shall not be taxed.
  1  7    2.  a.  The moneys and credits tax on credit unions is
  1  8 imposed at a rate of five mills on each dollar of the legal
  1  9 and special reserves which are required to be maintained by
  1 10 the credit union under section 533.17, and shall be levied by
  1 11 the board of supervisors, and placed upon the tax list and
  1 12 collected by the county treasurer, except that an exemption
  1 13 shall be given to each credit union in the amount of forty
  1 14 thousand dollars.  The amount collected in each taxing
  1 15 district within a city shall be apportioned twenty percent to
  1 16 the county, thirty percent to the city general fund, and fifty
  1 17 percent to the general fund of the state, and the amount
  1 18 collected in each taxing district outside of cities shall be
  1 19 apportioned fifty percent to the county and fifty percent to
  1 20 the general fund of the state.  The moneys and credits tax
  1 21 shall be collected at the location of the credit union as
  1 22 shown in its articles of incorporation.
  1 23    b.  The moneys and credits tax imposed under this section
  1 24 shall be reduced by an investment tax credit authorized
  1 25 pursuant to section 15E.43.
  1 26    c.  The moneys and credits tax imposed under this section
  1 27 shall be reduced by an investment tax credit authorized
  1 28 pursuant to section 15E.51.
  1 29    3.  a.  In addition to the moneys and credits tax imposed
  1 30 under this section, a credit union that acquires a bank as
  1 31 defined in section 524.103 shall pay an annual fee to the
  1 32 state that is equal to the amount that the bank paid as
  1 33 franchise tax pursuant to chapter 422, division V, in its last
  1 34 taxable year of operation before the acquisition.  The fact
  1 35 that the bank has begun or completed a process of dissolution
  2  1 in order to permit the acquisition to occur shall not be used
  2  2 by the credit union to suggest that the bank does not formally
  2  3 satisfy the definition of a bank, and that the fee is not
  2  4 owed.
  2  5    b.  The fee shall be due and payable according to the
  2  6 provisions of section 422.62, and shall be allocated according
  2  7 to the provisions of section 422.65, as if the fee were a
  2  8 franchise tax obligation.  Chapter 422, divisions V through
  2  9 VII, shall apply generally to payments required under this
  2 10 subsection.  The director of revenue and finance may adopt
  2 11 rules as necessary for the administration of this subsection.  
  2 12                           EXPLANATION
  2 13    This bill adds an annual fee for credit unions that acquire
  2 14 banks which is equal to the amount of the annual franchise tax
  2 15 that the bank paid to the state in its last taxable year of
  2 16 operation prior to the acquisition by the credit union.  The
  2 17 fact that the bank must change its business form in order to
  2 18 be acquired by the credit union through a process of
  2 19 dissolution may not be used to defeat the imposition of the
  2 20 new fee under Code section 533.24.
  2 21    The bill provides that the payment shall be made to the
  2 22 state, and shall be processed essentially in the same manner
  2 23 as if the fee were a franchise tax payment by a bank.  The
  2 24 director of revenue and finance may adopt rules as necessary
  2 25 for the administration of the subsection.  
  2 26 LSB 3019HC 80
  2 27 jj/sh/8
     

Text: HSB00292                          Text: HSB00294
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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