House File 399 - Introduced



                                     HOUSE FILE       
                                     BY  WINDSCHITL, MAY, KAUFMANN,
                                         SCHULTZ, STRUYK, HUSEMAN,
                                         DOLECHECK, DEYOE, SODERBERG,
                                         DE BOEF, and SORENSON


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

                                      A BILL FOR

  1 An Act exempting retired veterans from the imposition of the
  2    individual income tax and including a retroactive
  3    applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1750YH 83
  6 tw/mg:sc/5

PAG LIN



  1  1    Section 1.  Section 422.5, Code 2009, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  2A.  However, the tax shall not be imposed
  1  4 on a resident or nonresident who is at least sixty=five years
  1  5 old on December 31 of the tax year and who has performed
  1  6 active duty military service in the United States armed
  1  7 forces, armed forces military reserve, or national guard, and
  1  8 who has been honorably discharged.  In the case of married
  1  9 persons filing jointly, the exemption from tax under this
  1 10 subsection only applies to the income of the spouse who
  1 11 qualifies as a veteran.
  1 12    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 13 retroactively to January 1, 2009, for tax years beginning on
  1 14 or after that date.
  1 15                           EXPLANATION
  1 16    This bill exempts from the imposition of the individual
  1 17 income tax veterans who have performed active duty military
  1 18 service in the armed forces, armed forces military reserve, or
  1 19 the national guard and who have been honorably discharged.
  1 20    If married persons file jointly, the exemption of income
  1 21 from tax only applies to the income of the veteran spouse.
  1 22    The bill applies retroactively to January 1, 2009, for tax
  1 23 years beginning on or after that date.
  1 24 LSB 1750YH 83
  1 25 tw/mg:sc/5