Senate File 85 - Introduced





                                       SENATE FILE       
                                       BY  HOGG


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

                                      A BILL FOR

  1 An Act relating to the release of taxpayer debt information by
  2    the department of revenue and to the assessment of penalties
  3    and interest on taxes due by active duty military personnel
  4    and providing a retroactive applicability date.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1506XS 83
  7 tw/mg:sc/8

PAG LIN



  1  1    Section 1.  Section 421.17, subsection 27, paragraph i,
  1  2 Code 2009, is amended to read as follows:
  1  3    i.  The director may distribute to credit reporting
  1  4 entities and for publication the names, addresses, and amounts
  1  5 of indebtedness owed to or being collected by the state if the
  1  6 indebtedness is subject to the centralized debt collection
  1  7 procedure established in this subsection.  The director shall
  1  8 not distribute or otherwise release for publication the name,
  1  9 address, or amount of indebtedness owed by a taxpayer if the
  1 10 taxpayer is a member on active duty in the armed forces, armed
  1 11 forces military reserve, or national guard.  The director
  1 12 shall adopt rules to administer this paragraph, and the rules
  1 13 shall provide guidelines by which the director shall determine
  1 14 which names, addresses, and amounts of indebtedness may be
  1 15 distributed for publication.  The director may distribute
  1 16 information for publication pursuant to this paragraph,
  1 17 notwithstanding sections 422.20, 422.72, and 423.42, or any
  1 18 other provision of state law to the contrary pertaining to
  1 19 confidentiality of information.
  1 20    Sec. 2.  Section 421.27, Code 2009, is amended by adding
  1 21 the following new subsection:
  1 22    NEW SUBSECTION.  8.  ASSESSMENT AGAINST ACTIVE DUTY
  1 23 MILITARY PERSONNEL.  If a taxpayer is a member on active duty
  1 24 in the armed forces, armed forces military reserve, or
  1 25 national guard, the department shall not add a penalty or
  1 26 interest to the amount of tax shown due or required to be
  1 27 shown due.  Penalty and interest may be assessed on the amount
  1 28 of tax due or required to be shown due after the department
  1 29 has issued a notice to the taxpayer and provided the taxpayer
  1 30 at least ninety days from the cessation of the taxpayer's tour
  1 31 of active duty to remit payment of the amount of tax shown due
  1 32 or required to be shown due.
  1 33    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
  1 34 retroactively to January 1, 2008, for tax years beginning on
  1 35 or after that date.
  2  1                           EXPLANATION
  2  2    This bill prevents the department of revenue from
  2  3 distributing or otherwise releasing the name, address, or
  2  4 amount of indebtedness owed by a taxpayer if the taxpayer is a
  2  5 member on active duty in the armed forces, the armed forces
  2  6 military reserve, or the national guard.
  2  7    The bill also requires the department of revenue to give
  2  8 active duty military personnel a delinquency notice and a
  2  9 90=day grace period after the taxpayer ceases to be on active
  2 10 duty before assessing a tax penalty and interest on the amount
  2 11 due.
  2 12    The bill applies retroactively to January 1, 2008, for tax
  2 13 years beginning on or after that date.
  2 14 LSB 1506XS 83
  2 15 tw/mg:sc/8