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 the Internal Revenue Code in effect on January 1, 2004 same 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 the Internal Revenue Code in effect on January 1, 2004
  1 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 of 1954, prior to the date of its redesignation as the
  1 16 Internal Revenue Code of 1986 as designated by the Tax Reform
  1 17 Act of 1986, or means the Internal Revenue Code of 1986 as
  1 18 amended to and including January 1, 2003, and as amended by
  1 19 Pub. L. No. 108=27, section 202, whichever is applicable a
  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