Senate File 246

                                       SENATE FILE       
                                       BY  WARNSTADT, DOTZLER, KREIMAN,
                                           COURTNEY, SENG, RAGAN, BLACK,
                                           BOLKCOM, GRONSTAL, CONNOLLY,
                                           DVORSKY, STEWART, BEALL,
                                           QUIRMBACH, FRAISE, DEARDEN,
                                           HATCH, and HOLVECK


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

                                      A BILL FOR

  1 An Act exempting from state individual income tax any death
  2    benefits received as a result of the death of a member of the
  3    armed forces in or as a result of a terroristic or military
  4    action and including an effective and retroactive
  5    applicability date provision.
  6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  7 TLSB 1474XS 80
  8 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.  39.  Subtract, to the extent included, the
  1  4 amount of death benefits received by the taxpayer and
  1  5 taxpayer's spouse or dependent as a result of the death of a
  1  6 member of the armed forces of the United States if the death
  1  7 occurred while serving in or as a result of wounds, disease,
  1  8 or injury while serving in a terroristic or military action as
  1  9 defined in section 692(c)(2) of the Internal Revenue Code.
  1 10    Sec. 2.  EFFECTIVE AND APPLICABILITY DATE.  This Act, being
  1 11 deemed of immediate importance, takes effect upon enactment
  1 12 and applies retroactively to January 1, 2003, for tax years
  1 13 beginning or on after that date.
  1 14                           EXPLANATION
  1 15    This bill exempts from state individual income tax death
  1 16 benefits received as a result of the death of a member of the
  1 17 United States armed forces which occurred in or as a result of
  1 18 a terroristic or military action.
  1 19    The bill takes effect upon enactment and applies beginning
  1 20 with the 2003 tax year.
  1 21 LSB 1474XS 80
  1 22 mg/pj/5
  1 23
  1 24
  1 25
  1 26
  1 27
  1 28
  1 29
  1 30
  1 31
  1 32
  1 33
  1 34
  1 35