Senate File 23

                                       SENATE FILE       
                                       BY  MILLER


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a capital gain deduction for state individual
  2    income tax purposes and providing effective and retroactive
  3    applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1161XS 80
  6 mg/pj/5

PAG LIN

  1  1    Section 1.  Section 422.7, Code 2003, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  21A.  Subtract, to the extent not
  1  4 otherwise deducted in determining federal adjusted gross
  1  5 income or under subsection 21, fifty percent of the capital
  1  6 gain on the sale of tangible personal property or real
  1  7 property which was held by the taxpayer for a period of twelve
  1  8 months or more from the date of acquisition and was held by
  1  9 the taxpayer as a capital asset.  This subsection does not
  1 10 apply to the sale of livestock and horses.
  1 11    Sec. 2.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  1 12 deemed of immediate importance, takes effect upon enactment
  1 13 and applies retroactively to January 1, 2003, for tax years
  1 14 beginning on or after that date.
  1 15                           EXPLANATION
  1 16    This bill provides for a 50 percent deduction of the
  1 17 capital gain from the sale of tangible personal property and
  1 18 real property held by the taxpayer for 12 months or longer.
  1 19    The bill takes effect upon enactment and is applicable
  1 20 beginning with the 2003 tax year.
  1 21 LSB 1161XS 80
  1 22 mg/pj/5
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