Senate File 325 - Introduced





                                       SENATE FILE       
                                       BY  HAMERLINCK


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

                                      A BILL FOR

  1 An Act increasing the amount of pension income that is exempted
  2    from the 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 2465XS 83
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PAG LIN



  1  1    Section 1.  Section 422.7, subsection 31, Code 2009, is
  1  2 amended to read as follows:
  1  3    31.  For a person who is disabled, or is fifty=five years
  1  4 of age or older, or is the surviving spouse of an individual
  1  5 or a survivor having an insurable interest in an individual
  1  6 who would have qualified for the exemption under this
  1  7 subsection for the tax year, subtract, to the extent included,
  1  8 the total amount of a governmental or other pension or
  1  9 retirement pay, including, but not limited to, defined benefit
  1 10 or defined contribution plans, annuities, individual
  1 11 retirement accounts, plans maintained or contributed to by an
  1 12 employer, or maintained or contributed to by a self=employed
  1 13 person as an employer, and deferred compensation plans or any
  1 14 earnings attributable to the deferred compensation plans, up
  1 15 to a maximum of six twelve thousand dollars for a person,
  1 16 other than a husband or wife, who files a separate state
  1 17 income tax return and up to a maximum of twelve twenty=four
  1 18 thousand dollars for a husband and wife who file a joint state
  1 19 income tax return.  However, a surviving spouse who is not
  1 20 disabled or fifty=five years of age or older can only exclude
  1 21 the amount of pension or retirement pay received as a result
  1 22 of the death of the other spouse.  A husband and wife filing
  1 23 separate state income tax returns or separately on a combined
  1 24 state return are allowed a combined maximum exclusion under
  1 25 this subsection of up to twelve twenty=four thousand dollars.
  1 26 The twelve twenty=four thousand dollar exclusion shall be
  1 27 allocated to the husband or wife in the proportion that each
  1 28 spouse's respective pension and retirement pay received bears
  1 29 to total combined pension and retirement pay received.
  1 30    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 31 retroactively to January 1, 2009, for tax years beginning on
  1 32 or after that date.
  1 33                           EXPLANATION
  1 34    Current law provides an exclusion from the individual
  1 35 income tax for certain pension income.  The exclusion is
  2  1 available on the first $6,000 of an individual's pension
  2  2 income and $12,000 for joint filers.
  2  3    This bill doubles the amount of the exclusion to $12,000
  2  4 for an individual filer and $24,000 for joint filers.
  2  5    The bill applies retroactively to January 1, 2009, for tax
  2  6 years beginning on or after that date.
  2  7 LSB 2465XS 83
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