Text: S03317 Text: S03319 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend Senate File 453 as follows: 1 2 #1. By striking page 1, line 1, through page 4, 1 3 line 19, and inserting the following: 1 4 "DIVISION I 1 5 RESERVE FUNDS – COMBINED RETURNS 1 6 Section 1. Section 8.55, subsection 4, Code 2003, 1 7 is amended by striking the subsection. 1 8 Sec. . Section 8.56, subsection 1, Code 2003, 1 9 is amended to read as follows: 1 10 1. A cash reserve fund is created in the state 1 11 treasury. The cash reserve fund shall be separate 1 12 from the general fund of the state and shall not be 1 13 considered part of the general fund of the state 1 14 except in determining the cash position of the state 1 15 as provided in subsection 3. The moneys in the cash 1 16 reserve fund are not subject to section 8.33 and shall 1 17 not be transferred, used, obligated, appropriated, or 1 18 otherwise encumbered except as provided in this 1 19 section.Notwithstanding section 12C.7, subsection 2,1 20interest or earnings on moneys deposited in the cash1 21reserve fund shall be credited to the rebuild Iowa1 22infrastructure fund created in section 8.57.Moneys 1 23 in the cash reserve fund may be used for cash flow 1 24 purposes during a fiscal year provided that any moneys 1 25 so allocated are returned to the cash reserve fund by 1 26 the end of that fiscal year. 1 27 Sec. . Section 8.57, subsection 1, paragraph a, 1 28 unnumbered paragraph 1, Code Supplement 2001, as 1 29 enacted by 2002 Iowa Acts, Second Extraordinary 1 30 Session, chapter 1001, section 28, is amended to read 1 31 as follows: 1 32 The "cash reserve goal percentage" for fiscal years 1 33 beginning on or after July 1,20032004, is seven and 1 34 one-half percent of the adjusted revenue estimate. 1 35 For each fiscal yearbeginning on or after July 1,1 362003,in which the appropriation of the surplus 1 37 existing in the general fund of the state at the 1 38 conclusion of the prior fiscal year pursuant to 1 39 paragraph "b" was not sufficient for the cash reserve 1 40 fund to reach the cash reserve goal percentage for the 1 41 current fiscal year, there is appropriated from the 1 42 general fund of the state an amount to be determined 1 43 as follows: 1 44 Sec. . NEW SECTION. 422.37A COMBINED RETURNS. 1 45 An affiliated group of corporations shall, under 1 46 rules prescribed by the director, file a combined 1 47 return showing the net income of all corporations 1 48 engaged in a unitary business, subject to the 1 49 following: 1 50 1. The affiliated group filing under this section 2 1 shall meet the requirements to file a consolidated 2 2 return for federal income tax purposes as provided in 2 3 sections 1501 through 1504 of the Internal Revenue 2 4 Code for the same taxable year. 2 5 2. All members of the affiliated group shall join 2 6 in the filing of an Iowa combined return to the extent 2 7 they are engaged in a unitary business. 2 8 3. Members of the affiliated group exempt from 2 9 taxation by section 422.34 shall not be included in a 2 10 combined return. 2 11 4. All members of the affiliated group shall use 2 12 the statutory method of allocation and apportionment 2 13 unless the director has granted permission to all 2 14 members to use an alternative method of allocation and 2 15 apportionment. 2 16 5. The computation of income under a combined 2 17 return for members of an affiliated group shall be 2 18 made in the same manner and under the same procedures, 2 19 including all intercompany adjustments and 2 20 eliminations, as are required for consolidating the 2 21 incomes of affiliated corporations for the taxable 2 22 year for federal income tax purposes in accordance 2 23 with section 1502 of the Internal Revenue Code. 2 24 6. The combined income approach is the computation 2 25 of combining the taxable income of an affiliated group 2 26 as a single economic unit and each affiliated group 2 27 shall only file one income tax return. The net income 2 28 of an affiliated group is determined by applying the 2 29 apportionment formula against the combined income of 2 30 the affiliated group. 2 31 7. Only the sales of those corporations in the 2 32 affiliated group subject to the tax imposed by section 2 33 422.33 are included in the numerator of the 2 34 apportionment formula. 2 35 8. Only those corporations in the affiliated group 2 36 subject to the tax imposed by section 422.33 are 2 37 jointly and severally liable for the Iowa tax of the 2 38 combined group. 2 39 Sec. . 2002 Iowa Acts, Second Extraordinary 2 40 Session, chapter 1001, section 33, is amended to read 2 41 as follows: 2 42 SEC. 33. EFFECTIVE DATE – APPLICABILITY. The 2 43 amendments to the following designated Code provisions 2 44 in this division of this Act take effect July 1,20032 45 2004: 2 46 1. Section 8.55, subsection 2, paragraph "a". 2 47 2. Section 8.56, subsection 4, paragraph "b". 2 48 3. Section 8.57, subsection 1, paragraph "a". 2 49 Sec. . CASH RESERVE APPROPRIATION TO GENERAL 2 50 FUND. 3 1 1. Notwithstanding section 8.56, subsection 4, 3 2 paragraph "a", there is appropriated from the cash 3 3 reserve fund to the general fund of the state for the 3 4 fiscal year beginning July 1, 2003, and ending June 3 5 30, 2004, the following amount, or so much thereof as 3 6 is necessary: 3 7 .................................................. $ 43,700,000 3 8 2. The appropriation made in this section is 3 9 declared to be made for nonrecurring emergency 3 10 expenditures as required in section 8.56, subsections 3 11 3 and 4. 3 12 Sec. . GENERAL FUND APPROPRIATION TO CASH 3 13 RESERVE. Notwithstanding section 8.57, subsection 1, 3 14 paragraph "a", there shall be no appropriation from 3 15 the general fund of the state to the cash reserve fund 3 16 for the fiscal year beginning July 1, 2003, and ending 3 17 June 30, 2004, of the amount necessary for the cash 3 18 reserve fund to reach the cash reserve goal percentage 3 19 for that fiscal year. 3 20 Sec. . RETROACTIVE APPLICABILITY PROVISION. 3 21 The provision of this division of this Act enacting 3 22 section 422.37A, is retroactively applicable to 3 23 January 1, 2003, for tax years beginning on or after 3 24 that date." 3 25 #2. Title page, line 1, by inserting after the 3 26 word "financial" the following: ",tax,". 3 27 #3. By renumbering as necessary. 3 28 3 29 3 30 3 31 MICHAEL E. GRONSTAL 3 32 SF 453.207 80 3 33 jp/sh
Text: S03317 Text: S03319 Text: S03300 - S03399 Text: S Index Bills and Amendments: General Index Bill History: General Index
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