House File 692 - Introduced HOUSE FILE BY SHOMSHOR Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to coupling Iowa's tax laws with the federal 2 Internal Revenue Code and including an applicability date 3 provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2019HH 81 6 sc/pj/5 PAG LIN 1 1 Section 1. Section 15.335, subsection 4, unnumbered 1 2 paragraph 2, Code 2005, is amended to read as follows: 1 3 For purposes of this section, "Internal Revenue Code" means 1 4 theInternal Revenue Code in effect on January 1, 2004same as 1 5 defined in section 422.3. 1 6 Sec. 2. Section 15A.9, subsection 8, paragraph e, 1 7 unnumbered paragraph 2, Code 2005, is amended to read as 1 8 follows: 1 9 For purposes of this subsection, "Internal Revenue Code" 1 10 means theInternal Revenue Code in effect on January 1, 20041 11 same as defined in section 422.3. 1 12 Sec. 3. Section 422.3, subsection 5, Code 2005, is amended 1 13 to read as follows: 1 14 5. "Internal Revenue Code" means the Internal Revenue Code 1 15 of1954, prior to the date of its redesignation as the 1 16 Internal Revenue Code of1986 as designated by the Tax Reform 1 17 Act of 1986,or means the Internal Revenue Code of 1986as 1 18 amended toand including January 1, 2003, and as amended by 1 19 Pub. L. No. 108=27, section 202, whichever is applicablea 1 20 date designated by rules adopted by the director of revenue. 1 21 Sec. 4. NEW SECTION. 422.3A FISCAL IMPACT OF INTERNAL 1 22 REVENUE CODE CHANGES == ANNUAL STATEMENT BY DIRECTOR. 1 23 On or before the first day of each regular session of the 1 24 general assembly, the director of revenue shall transmit to 1 25 each member of the general assembly a statement detailing the 1 26 estimated fiscal impact to state general fund revenues, over 1 27 at least a five=year period, resulting from the state's 1 28 incorporating the changes made by Congress to the Internal 1 29 Revenue Code. 1 30 Sec. 5. Section 422.10, subsection 3, unnumbered paragraph 1 31 2, Code 2005, is amended by striking the unnumbered paragraph. 1 32 Sec. 6. Section 422.32, subsection 7, Code 2005, is 1 33 amended by striking the subsection. 1 34 Sec. 7. Section 422.33, subsection 5, paragraph d, 1 35 unnumbered paragraph 2, Code 2005, is amended by striking the 2 1 unnumbered paragraph. 2 2 Sec. 8. APPLICABILITY. This Act applies to tax years 2 3 beginning on or after January 1, 2006. 2 4 EXPLANATION 2 5 This bill changes the Code definition of the federal 2 6 "Internal Revenue Code" making it no longer necessary for the 2 7 general assembly to annually update, through legislation, the 2 8 reference to the most recent year of amendment of the Internal 2 9 Revenue Code. The bill provides that the department of 2 10 revenue shall designate by rule the year of amendment of the 2 11 Internal Revenue Code that is in effect for purposes of Iowa 2 12 taxes. 2 13 The bill requires the department of revenue to, each year, 2 14 provide a fiscal impact statement to the general assembly 2 15 detailing the impact to state general fund revenues as a 2 16 result of incorporating the changes made by Congress to the 2 17 Internal Revenue Code. 2 18 The bill applies to tax years beginning on or after January 2 19 1, 2006. 2 20 LSB 2019HH 81 2 21 sc:rj/pj/5