Text: SF02303 Text: SF02305 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.5, subsection 1, paragraphs a 1 2 through i, Code 2003, as amended by 2003 Iowa Acts, First 1 3 Extraordinary Session, chapter 1, section 44, are amended to 1 4 read as follows: 1 5 For tax years beginning 1 6 in the calendar year: 1 72004200520061 8 2005 2006 2007 1 9 a. On all taxable income from 1 10 zero through one thousand dollars: .... .35% .34% .32% 1 11 b. On all taxable income exceeding 1 12 one thousand dollars but not 1 13 exceeding two thousand dollars: ....... .70% .68% .65% 1 14 c. On all taxable income exceeding 1 15 two thousand dollars but not 1 16 exceeding four thousand dollars: ..... 2.36% 2.30% 2.19% 1 17 d. On all taxable income exceeding 1 18 four thousand dollars but not 1 19 exceeding nine thousand dollars: ..... 4.37% 4.27% 4.05% 1 20 e. On all taxable income exceeding 1 21 nine thousand dollars but not 1 22 exceeding fifteen thousand 1 23 dollars: ............................. 5.94% 5.80% 5.51% 1 24 f. On all taxable income exceeding 1 25 fifteen thousand dollars but not 1 26 exceeding twenty thousand 1 27 dollars: ............................. 6.29% 6.14% 5.84% 1 28 g. On all taxable income exceeding 1 29 twenty thousand dollars but not 1 30 exceeding thirty thousand 1 31 dollars: ............................. 6.60% 6.45% 6.13% 1 32 h. On all taxable income exceeding 1 33 thirty thousand dollars but not 1 34 exceeding forty-five thousand 1 35 dollars: ............................. 7.68% 7.51% 7.14% 2 1 i. On all taxable income exceeding 2 2 forty-five thousand dollars: ......... 8.71% 8.51% 8.09% 2 3 Sec. 2. 2003 Iowa Acts, First Extraordinary Session, 2 4 chapter 1, section 45, is amended to read as follows: 2 5 SEC. 45. EFFECTIVE AND APPLICABILITY DATE PROVISIONS. 2 6 This division of this Act takes effect January 1,20042005, 2 7 for tax years beginning on or after January 1,20042005, but 2 8 before January 1,20072008. 2 9 Sec. 3. Section 422.5, subsection 1, paragraphs a through 2 10 i, Code 2003, as amended by 2003 Iowa Acts, First 2 11 Extraordinary Session, chapter 1, section 46, are amended to 2 12 read as follows: 2 13 For tax years beginning 2 14 in the calendar year: 2 1520072008 and subsequent 2 16 calendar years 2 17 a. On all taxable income from 2 18 zero through one thousand dollars: .... .31% 2 19 b. On all taxable income exceeding 2 20 one thousand dollars but not 2 21 exceeding two thousand dollars: ....... .62% 2 22 c. On all taxable income exceeding 2 23 two thousand dollars but not 2 24 exceeding four thousand dollars: ..... 2.09% 2 25 d. On all taxable income exceeding 2 26 four thousand dollars but not 2 27 exceeding nine thousand dollars: ..... 3.87% 2 28 e. On all taxable income exceeding 2 29 nine thousand dollars but not 2 30 exceeding fifteen thousand 2 31 dollars: ............................. 5.26% 2 32 f. On all taxable income exceeding 2 33 fifteen thousand dollars but not 2 34 exceeding twenty thousand 2 35 dollars: ............................. 5.57% 3 1 g. On all taxable income exceeding 3 2 twenty thousand dollars but not 3 3 exceeding thirty thousand 3 4 dollars: ............................. 5.84% 3 5 h. On all taxable income exceeding 3 6 thirty thousand dollars but not 3 7 exceeding forty-five thousand 3 8 dollars: ............................. 6.80% 3 9 i. On all taxable income exceeding 3 10 forty-five thousand dollars: ......... 7.71% 3 11 Sec. 4. Iowa Acts, First Extraordinary Session, chapter 1, 3 12 section 47, is amended to read as follows: 3 13 SEC. 47. EFFECTIVE AND APPLICABILITY DATE PROVISIONS. 3 14 This division of this Act takes effect January 1,20072008, 3 15 for tax years beginning on or after January 1,20072008. 3 16 Sec. 5. 2003 Iowa Acts, First Extraordinary Session, 3 17 chapter 1, section 72, is amended to read as follows: 3 18 SEC. 72. 3 19 1. This division of this Act takes effect upon 3 20 ratification prior to January 1,20072008, of an amendment to 3 21 the Constitution of the State of Iowa requiring a three-fifths 3 22 majority vote of each house of the general assembly in order 3 23 to pass a bill that amends the state individual income tax by 3 24 raising the rate or rates of the individual income tax or of 3 25 an amendment to the Constitution of the State of Iowa 3 26 requiring a statewide referendum in order to approve a bill 3 27 that amends the state individual income tax by raising the 3 28 rate or rates of the individual income tax. 3 29 2. If this division of this Act takes effect as provided 3 30 in subsection 1, this division of this Act, except as provided 3 31 in subsection 3, applies to tax years beginning on or after 3 32 January 1,20072008. 3 33 3. The section of this division of this Act repealing 3 34 section 422.11B applies to tax years beginning on or after 3 35 January 1,20102011. 4 1 Sec. 6. CONTINGENT EFFECTIVENESS. This Act takes effect 4 2 only if the Iowa supreme court rules in the case of Rants and 4 3 Iverson v. Vilsack, No. 03-1948, that the governor's line item 4 4 vetoes of provisions of House File 692 (2003 Iowa Acts, First 4 5 Extraordinary Session, chapter 1) were unconstitutional. 4 6 EXPLANATION 4 7 During the 2003 special session, the general assembly 4 8 passed House File 692 (2003 Iowa Acts, First Extraordinary 4 9 Session, chapter 1) which contained, among its provisions, 4 10 reductions in the state individual income tax rates beginning 4 11 with the tax years beginning in the 2004 calendar year. The 4 12 nine-bracket rate schedule for the 2003 tax year is .36 4 13 percent to 8.98 percent. The nine-bracket rate schedule was 4 14 adjusted as follows: for the 2004 tax year, .35 percent to 4 15 8.71 percent; for the 2005 tax year, .34 percent to 8.51 4 16 percent; and for the 2006 tax year, .32 percent to 8.09 4 17 percent. In addition, for tax years beginning on or after 4 18 January 1, 2007, the rate schedule would be adjusted to .31 4 19 percent to 7.71 percent or, adjusted to a three-bracket rate 4 20 schedule of 1.85 percent, 4.75 percent, and 4.99 percent, 4 21 conditional upon passage of a constitutional amendment prior 4 22 to January 1, 2007, of a requirement for a 60 percent vote in 4 23 the general assembly or for a statewide referendum to increase 4 24 the income tax. 4 25 The governor exercised his line item veto authority to 4 26 negate these income tax reductions. However, a lawsuit has 4 27 challenged the constitutionality of these item vetoes. 4 28 This bill provides that the income tax reductions 4 29 originally scheduled for tax years beginning in the 2004, 4 30 2005, 2006, and 2007 calendar years are to be delayed one 4 31 year. Those reductions would only occur as a result of this 4 32 bill for the tax years beginning in the 2005, 2006, 2007, and 4 33 2008 calendar years. The bill is contingent upon the Iowa 4 34 supreme court ruling that the governor's line item vetoes of 4 35 the original tax reduction provisions were unconstitutional. 5 1 LSB 7038SV 80 5 2 mg/pj/5
Text: SF02303 Text: SF02305 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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