Senate File 379 - Introduced



                                       SENATE FILE       
                                       BY  ZIEMAN


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

                                      A BILL FOR

  1 An Act relating to the exemption from the individual income tax
  2    of active duty pay for certain military service, and including
  3    effective and retroactive applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2329SS 82
  6 mg/je/5

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  50.  Subtract, to the extent included,
  1  4 active duty pay received by the taxpayer after September 10,
  1  5 2001, as a member on federal active duty of the armed forces
  1  6 or as a member in the armed forces military reserve or
  1  7 national guard serving on federal active duty other than for
  1  8 training.
  1  9    Sec. 2.  Section 422.73, Code 2007, is amended by adding
  1 10 the following new subsection:
  1 11    NEW SUBSECTION.  4.  Notwithstanding subsection 1, a claim
  1 12 for credit or refund of the income tax paid for a tax year
  1 13 beginning on or after January 1, 2001, but before January 1,
  1 14 2004, is considered timely if the claim is filed with the
  1 15 department on or before April 30, 2008, if the taxpayer's
  1 16 state net income is reduced as a result of the noninclusion in
  1 17 net income of active duty pay received as provided in section
  1 18 422.7, subsection 50.
  1 19    Sec. 3.  EFFECTIVE AND RETROACTIVE APPLICABILITY DATES.
  1 20 This Act, being deemed of immediate importance, takes effect
  1 21 upon enactment and applies retroactively to January 1, 2001,
  1 22 for tax years beginning on or after that date.
  1 23                           EXPLANATION
  1 24    This bill exempts from income tax active duty pay received
  1 25 after September 10, 2001, by members of the armed forces,
  1 26 armed forces military reserve, and national guard who serve on
  1 27 federal active duty other than for training.
  1 28    The bill provides an extension for the filing of a claim
  1 29 for refund or credit as a result of the exclusion in the bill
  1 30 of active duty pay.
  1 31    The bill takes effect upon enactment and applies
  1 32 retroactively to January 1, 2001, for tax years beginning on
  1 33 or after that date.
  1 34 LSB 2329SS 82
  1 35 mg:rj/je/5