SSB 3200 (LSB 5433XD (27) 83)

SENATE/HOUSE FILE _____

BY  (PROPOSED DEPARTMENT OF REVENUE BILL)

A BILL FOR

An Act relating to the policy administration of the tax and related laws by the department of revenue, including administration of income taxes, sales and use taxes, motor fuel taxes, property taxes, and inheritance taxes, providing for taxpayer information exchanges with the department of workforce development, making penalties applicable, and including effective date and retroactive and other applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
WITHHOLDING TAX CREDITS
    Section 1.  Section 15A.7, unnumbered paragraph 1, Code Supplement 2009, is amended to read as follows:
   In order to promote the creation of additional high-quality new jobs within the state, an agreement under section 260E.3 may include a provision for a supplemental new jobs credit from withholding from jobs created under the agreement.  As used in this section, “new jobs credit from withholding” means the same as defined in section 260E.2. A provision in an agreement for which a supplemental credit from withholding is included shall provide for the following:
    Sec. 2.  Section 15A.9, subsection 3, paragraph a, unnumbered paragraph 1, Code Supplement 2009, is amended to read as follows:
   At the request of the primary business or a supporting business, an agreement authorizing a supplemental new jobs credit from withholding from jobs within the zone may be entered into between the department of revenue, a community college, and the primary business or a supporting business.  As used in this subsection, “new jobs credit from withholding” means the same as defined in section 260E.2. The agreement shall be for program services for an additional job training project, as defined in chapter 260E. The agreement shall provide for the following:
    Sec. 3.  Section 15E.197, subsection 4, Code Supplement 2009, is amended to read as follows:
   4.  For purposes of this section, “eligible business” means a business which has been approved to receive incentives and assistance by the department of economic development pursuant to application as provided in section 15E.195, and “new jobs credit from withholding” means the same as defined in section 260E.2.
    Sec. 4.  Section 260E.2, subsection 11, Code 2009, is amended to read as follows:
   11.  “New jobs credit from withholding” means the credit procedure for crediting to employers the amount of withholding tax payments made by the department of revenue to community colleges as provided in section 260E.5.
    Sec. 5.  Section 260E.5, subsections 2, 4, 5, and 6, Code 2009, are amended to read as follows:
   2.  a.  The employer shall remit the total amount of withholding payments due pursuant to section 422.16 to the department of revenue.  An amount equal to one and one-half percent of the gross wages paid by the employer to each employee participating in a project shall be credited from the payment made by an employer pursuant to section 422.16. If the amount of the withholding by the employer is less than one and one-half percent of the gross wages paid to the employees covered by the agreement, then the employer shall receive a credit against other withholding taxes due by the employer. The employer shall remit the amount of the credit quarterly in the same manner as withholding payments are reported to the department of revenue, withholding tax payments to be made by the department of revenue on a quarterly basis to the account of each community college to be allocated to and when collected paid into a special fund of the community college to pay the principal of and interest on certificates issued by the community college to finance or refinance, in whole or in part, the project.
   b.  When the principal and interest on the certificates have been paid, the employer credits department of revenue shall cease and any money to credit withholding tax moneys to the account of the community college. All moneys received after the certificates have been paid shall be remitted to the treasurer of state to be deposited in the general fund of the state.
   4.  The employer shall certify to the department of revenue that the new jobs credit in from withholding is in accordance with an agreement and shall provide any other information the department may require.
   5.  A In order to receive the moneys credited to a community college’s account, the community college shall certify to the department of revenue the amount of new jobs credit from withholding an employer has remitted to be allocated and paid to the special fund and shall provide any other information the department may require.  Upon reviewing the required information and verifying that the certified amount is correct, the department of revenue shall pay the certified amount into the special fund of the community college.
   6.  An employee participating in a project will must receive full credit for the amount withheld as provided in section 422.16.
    Sec. 6.  Section 260G.2, subsection 13, Code 2009, is amended to read as follows:
   13.  “Program job credit” means the credit procedure for crediting to employers the amount of withholding tax payments made by the department of revenue to community colleges as provided in section 260G.4A.
    Sec. 7.  Section 260G.4A, subsections 2 through 5, Code 2009, are amended to read as follows:
   2.  a.  Eligibility for program job credits shall be based on certification of program job positions and program job wages by the employer at the time established in the agreement.  An employer shall remit the total amount of withholding payments due pursuant to section 422.16 to the department of revenue. An amount up to ten percent of the gross program job wage as certified by the employer in the agreement shall be credited from the total payment made by an employer pursuant to section 422.16. The employer shall receive a credit against all withholding taxes due by the employer regardless of whether or not the withholding from the employer of current program job wages is less than ten percent. The employer shall remit the amount of the credit quarterly in the same manner as withholding payments are reported to the department of revenue, withholding tax payments to be made by the department of revenue on a quarterly basis to the account of each community college to be allocated to and when collected paid into a special fund of the community college to pay, in part, the program costs.
   b.  When the program costs have been paid, the employer credits department of revenue shall cease and any to credit withholding tax moneys to the account of the community college. All moneys received after the program costs have been paid shall be remitted to the treasurer of state to be deposited in the general fund of the state.
   3.  The employer shall certify to the department of revenue that the program job credit is in accordance with the agreement and shall provide any other information the department may require.
   4.  A In order to receive the moneys credited to a community college’s account, the community college shall certify to the department of revenue that the amount of the program job credit to be allocated and paid to the special fund is correct and in accordance with an agreement and shall provide any other information the department may require.  Upon reviewing the required information and verifying that the certified amount is correct, the department of revenue shall pay the certified amount into the special fund of the community college.
   5.  Employees from of an employer participating in an agreement shall must receive full credit for the amount withheld as provided in section 422.16.
    Sec. 8.  Section 403.19A, subsection 1, Code Supplement 2009, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  Og.  “Targeted jobs withholding credit” means the procedure for crediting to employers the amount of withholding tax payments made by the department of revenue to a pilot project city as provided in subsection 3.
    Sec. 9.  Section 403.19A, subsection 3, paragraphs a, b, e, f, g, and h, Code Supplement 2009, are amended to read as follows:
   a.  A pilot project city may provide by ordinance for the deposit into a designated account in the special fund described in section 403.19, subsection 2, of the targeted jobs withholding credit described in this section and an employer may enter into a withholding agreement pursuant to this subsection. Such an agreement may include a provision for a targeted jobs withholding credit. The targeted jobs withholding credit shall be based upon the wages paid to employees pursuant to a withholding agreement.
   b.  The employer shall remit the total amount of withholding payments due pursuant to section 422.16 to the department of revenue.  An amount equal to three percent of the gross wages paid by an employer to each employee under a withholding agreement shall be credited from the payment made by the employer pursuant to section 422.16. If the amount of the withholding by the employer is less than three percent of the gross wages paid to the employees covered by the withholding agreement, the employer shall receive a credit against other withholding taxes due by the employer or may carry the credit forward for up to ten years or until depleted, whichever is the earlier. The employer shall remit the amount of the credit quarterly, in the same manner as withholding payments are reported to the department of revenue, withholding tax payments to be made by the department of revenue on a quarterly basis to the account of each pilot project city to be allocated to and when collected paid into a designated account in the special fund for the urban renewal area in which the targeted jobs are located. All amounts so deposited shall be used or pledged by the pilot project city for an urban renewal project related to the employer pursuant to the withholding agreement.
   e.  (1)  The employer shall certify to the department of revenue that the targeted jobs withholding credit is in accordance with the withholding agreement and shall provide any other information the department may require. Notice of any withholding agreement shall be provided promptly to the department of revenue following execution of the agreement by the pilot project city and the employer.
   (2)  Following termination of the withholding agreement, the employer credits department of revenue shall cease and any money to credit withholding tax moneys to the account of the pilot project city. All moneys received by the pilot project city after termination shall be remitted to the treasurer of state to be deposited into the general fund of the state. Notice shall be provided promptly to the department of revenue following termination.
   f.  If the employer ceases to meet the requirements of the withholding agreement, the agreement shall be terminated and any targeted jobs withholding tax credits for the benefit of payments credited to the employer employer’s obligations under the agreement shall cease. However, in regard to the number of new jobs that are to be created, if the employer has met the number of new jobs to be created pursuant to the withholding agreement and subsequently the number of new jobs falls below the required level, the employer shall not be considered as not meeting the new job requirement until eighteen months after the date of the decrease in the number of new jobs created.
   g.  A In order to receive the moneys credited to a pilot project city’s account, the pilot project city shall certify to the department of revenue the amount of the targeted jobs withholding credit an employer has remitted to the city to be allocated and paid to the special fund as provided for under the agreement and shall provide any other information the department may require.  Upon reviewing the required information and verifying that the certified amount is correct, the department of revenue shall pay the certified amount into the designated account of the special fund of the urban renewal area in which the targeted jobs are located.
   h.  An employee whose wages are subject to a withholding agreement shall must receive full credit for the amount withheld as provided in section 422.16.
    Sec. 10.  Section 403.19A, subsection 3, paragraph j, subparagraph (1), Code Supplement 2009, is amended to read as follows:
   (1)  A pilot project city entering into a withholding agreement shall arrange for matching local financial support for the project. The local match required under this paragraph “j” shall be in an amount equal to one dollar for every dollar of targeted jobs withholding credit tax payments received by the pilot project city from the department of revenue.
    Sec. 11.  Section 422.16A, Code 2009, is amended to read as follows:
   422.16A  Job training withholding —— certification and transfer.

   Upon the completion by a business of its repayment obligation of the payment of program costs for a training project funded under chapter 260E, including a job training project funded under section 15A.8 or repaid in whole or in part by the supplemental new jobs credit from withholding under section 15A.7 or section 15E.197, the sponsoring community college shall report to the department of economic development the amount of withholding paid by the business tax payments credited by the department of revenue to the account of the community college during the final twelve months of withholding payments. The department of economic development shall notify the department of revenue of that the amount reported by the community college. The department of revenue shall credit to the workforce development fund account established in section 15.342A twenty-five percent of that amount each quarter for a period of ten years. If the amount of withholding from the business or employer credited by the department of revenue is insufficient, the department of revenue shall prorate the quarterly amount credited to the workforce development fund account. The maximum amount from all employers of withholding tax credit which shall be transferred to the workforce development fund account in any year is four million dollars.
    Sec. 12.  RETROACTIVE APPLICABILITY.
   1.  This division of this Act applies to all agreements concerning withholding tax credit payments entered into pursuant to the provisions of chapters 260E and 260G and section 403.19A.
   2.  An agreement entered into prior to the effective date of this division of this Act shall be re-executed and its terms renegotiated in compliance with the provisions of this division of this Act.

DIVISION II
PROPERTY TAXES
    Sec. 13.  Section 421.17, subsection 17, Code 2009, is amended to read as follows:
   17.  To prepare and issue a state appraisal manual which each county and city assessor shall use in assessing and valuing all classes of property in the state. The appraisal manual shall be continuously revised and the manual and revisions shall be issued to the county and city assessors in such form and manner as prescribed by the director.  The director may approve an alternate appraisal manual for use by a city or county assessor if the director determines that the manual is uniform and consistent with the state appraisal manual.
    Sec. 14.  Section 421.30, subsection 7, Code 2009, is amended to read as follows:
   7.  Any reassessment of property ordered by the director, whether or not undertaken with funds provided in this section, shall be conducted by the assessor in accordance with the Iowa real property appraisal manual issued under authority of or an approved alternate appraisal manual as described in section 421.17, subsection 17, the assessment laws of this state, and any reassessment order issued by the director under authority of this chapter. The conference board may employ appraisers or other expert help to assist the assessor in completing the reassessment, except that no conference board receiving funds under this section shall enter into a contract for the reassessment of property until the board’s proposal for completing the reassessment is approved. The director shall supervise the conduct of all reassessments of property and issue to the assessor or conference board such instructions, directives, or orders as are necessary to ensure compliance with the provisions of this section and the assessment laws of this state.
    Sec. 15.  Section 427B.4, Code 2009, is amended to read as follows:
   427B.4  Application for exemption by property owner.
   1.  a.  An application shall be filed for each project resulting in actual value added for which an exemption is claimed. The first application for exemption shall be filed by the owner of the property with the local assessor governing body of the city or county in which the property is located by February 1 of the assessment year in which the value added is first assessed for taxation for which the exemption is first claimed, but not later than the year in which all improvements included in the project are first assessed for taxation, or the following two assessment years.
   b.  Applications for exemption shall be made on forms prescribed by the director of revenue and shall contain information pertaining to the nature of the improvement, its cost, the estimated or actual date of completion, whether the exemption schedule described in section 427B.3 or an alternate schedule adopted pursuant to section 427B.1 will be elected, and any other information deemed necessary by the director of revenue.
   2.  a.  A person may submit a proposal to the city council of the city or the board of supervisors of a county to receive prior approval for eligibility for a tax exemption on new construction. The city council or the board of supervisors, by ordinance, may give its prior approval of a tax exemption for new construction if the new construction is in conformance with the zoning plans for the city or county. The prior approval shall also be subject to the hearing requirements of section 427B.1.
   b.  Prior approval received under this subsection does not entitle the owner to exemption from taxation until the new construction has been completed and found to be qualified real estate. However, if the tax exemption for new construction is not approved, the person may submit an amended proposal to the city council or board of supervisors to approve or reject.
    Sec. 16.  Section 441.21, subsection 1, paragraphs h and i, Code Supplement 2009, are amended to read as follows:
   h.  The assessor shall determine the value of real property in accordance with rules adopted by the department of revenue and in accordance with either the forms and guidelines contained in the real property appraisal manual prepared by the department as updated from time to time or with an alternate appraisal manual approved for use pursuant to section 421.17, subsection 17. Such rules, forms, and guidelines shall not be inconsistent with or change the means, as provided in this section, of determining the actual, market, taxable, and assessed values.
   i.  (1)  If the department finds that a city or county assessor is not in compliance with the rules of the department relating to valuation of property or has disregarded either the forms and guidelines contained in the real property appraisal manual or an alternate appraisal manual approved for use pursuant to section 421.17, subsection 17, the department shall notify the assessor and each member of the conference board for the appropriate assessing jurisdiction. The notice shall be mailed by restricted certified mail. The notice shall specify the areas of noncompliance and the steps necessary to achieve compliance. The notice shall also inform the assessor and conference board that if compliance is not achieved, a penalty may be imposed.

   (2)  The conference board shall respond to the department within thirty days of receipt of the notice of noncompliance. The conference board may respond to the notice by asserting that the assessor is in compliance with the rules, guidelines, and forms of the department or by informing the department that the conference board intends to submit a plan of action to achieve compliance. If the conference board responds to the notification by asserting that the assessor is in compliance, a hearing before the director of revenue shall be scheduled on the matter.

   (3)  A plan of action shall be submitted within sixty days of receipt of the notice of noncompliance. The plan shall contain a time frame under which compliance shall be achieved which shall be no later than January 1 of the following assessment year. The plan of action shall contain the signature of the assessor and of the chairperson of the conference board. The department shall review the plan to determine whether the plan is sufficient to achieve compliance. Within thirty days of receipt of the plan, the department shall notify the assessor and the chairperson of the conference board that it has accepted the plan or that it is necessary to submit an amended plan of action.

   (4)  By January 1 of the assessment year following the calendar year in which the plan was submitted to the department, the conference board shall submit a report to the department indicating that the plan of action was followed and compliance has been achieved. The department may conduct a field inspection to ensure that the assessor is in compliance. By January 31, the department shall notify the assessor and the conference board, by restricted certified mail, either that compliance has been achieved or that the assessor remains in noncompliance. If the department determines that the assessor remains in noncompliance, the department shall take steps to withhold up to five percent of the reimbursement payment authorized in section 425.1 until the director of revenue determines that the assessor is in compliance.

   (5)  If the conference board disputes the determination of the department, the chairperson of the conference board may appeal the determination to the state board of tax review.

   (6)  The department shall adopt rules relating to the administration of this paragraph “i”.
    Sec. 17.  Section 441.21, subsection 2, Code Supplement 2009, is amended to read as follows:
   2.  a.  In the event market value of the property being assessed cannot be readily established in the foregoing manner, then the assessor may determine the value of the property using the other uniform and recognized appraisal methods including its productive and earning capacity, if any, industrial conditions, its cost, physical and functional depreciation and obsolescence and replacement cost, and all other factors which would assist in determining the fair and reasonable market value of the property but the actual value shall not be determined by use of only one such factor.
   b.  The following shall not be taken into consideration:

Special value or use value of the property to its present owner, and the goodwill or value of a business which uses the property as distinguished from the value of the property as property. However, in assessing property that is rented or leased to low-income individuals and families as authorized by section 42 of the Internal Revenue Code, as amended, and which section limits the amount that the individual or family pays for the rental or lease of units in the property, the assessor shall use the productive and earning capacity from the actual rents received as a method of appraisal and shall take into account the extent to which that use and limitation reduces the market value of the property.
   c.  The assessor shall not consider any tax credit equity or other subsidized financing as income provided to the property in determining the assessed value. The property owner shall notify the assessor when property is withdrawn from section 42 eligibility under the Internal Revenue Code. The property shall not be subject to section 42 assessment procedures for the assessment year for which section 42 eligibility is withdrawn. This notification must be provided to the assessor no later than March 1 of the assessment year or the owner will be subject to a penalty of five hundred dollars for that assessment year. The penalty shall be collected at the same time and in the same manner as regular property taxes.
   d.  Upon adoption of uniform rules by the department of revenue or succeeding authority covering assessments and valuations of such properties, the valuation on such properties shall be determined in accordance with such rules and in accordance with either the forms and guidelines contained in the real property appraisal manual prepared by the department as updated from time to time for assessment purposes to assure uniformity, but or with an alternate appraisal manual approved for use pursuant to section 421.17, subsection 17. However, such rules, forms, and guidelines shall not be inconsistent with or change the foregoing means of determining the actual, market, taxable and assessed values.

DIVISION III
FINANCIAL ACCOUNT MATCHING AND DEBT COLLECTION
    Sec. 18.  Section 421.17, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  27A.  a.  To establish a data match system.
   b.  The director may require financial institutions doing business in Iowa to enter into agreements to provide the information described in paragraph “c” regarding individuals with accounts at financial institutions who may be subject to a levy issued by the facility.
   c.  A financial institution, or its agent, shall provide on a quarterly basis the following information for each individual identified pursuant to paragraph “b”:
   (1)  Name.
   (2)  Address.
   (3)  Account numbers.
   (4)  Social security or tax identification number, as applicable.
   d.  An agreement shall provide that the information described in paragraph “c” be provided by doing one of the following:
   (1)  Using a data match system to identify individuals by means of a social security or tax identification number provided by the facility.
   (2)  Submitting reports containing the information described in paragraph “c” on individuals identified in paragraph “b” to the department. Information in such reports shall be used by the department solely for purposes of collecting obligor debts.
   e.  If, based on the information provided in paragraph “d” pursuant to the agreement, the facility determines that an account belongs to an individual who is an obligor, the facility may initiate an administrative action under section 421.17A to levy against the obligor’s account.
   f.  The facility shall reimburse a financial institution, or its agent, for the actual and reasonable costs incurred in providing the information described in paragraph “c”. For purposes of this paragraph “f”, “actual and reasonable costs” means either the cost of developing a data match system to provide information pursuant to paragraph “d”, subparagraph (1), or the cost of providing reports pursuant to paragraph “d”, subparagraph (2).
   g.  Notwithstanding any other provision of law to the contrary, an agreement with a financial institution pursuant to this subsection shall specify a date by which the financial institution shall submit a claim for reimbursement pursuant to paragraph “f”.
   h.  This subsection shall not be construed to preclude a financial institution from doing either of the following:
   (1)  Recouping a deposit made to an individual’s account, if the financial institution is lawfully entitled to do so.
   (2)  Collecting standard or contractual account activity fees to the extent such fees are necessary to maintain the account during any period in which access to the account is blocked or encumbered.
   i.  The information provided by a financial institution, or its agent, under this subsection shall be confidential and shall be available only to the department and the facility for use in levy collection activities.
   j.  A financial institution, or its agent, providing the information described in this subsection shall not be held liable for either of the following:
   (1)  Blocking access to or surrendering an individual’s assets in response to a levy action under this subsection.
   (2)  Any other action taken in good faith to comply with the requirements of this subsection.
   k.  This subsection shall not be construed to preclude the department from encumbering an obligor’s account with a financial institution by another available means or provision of law.
   l.  The director shall adopt rules for the administration of this subsection. The rules shall specify an implementation plan for the data match system. The plan, to the extent practicable, shall reflect the practices and capabilities of similar systems utilized by private entities or government agencies.
   m.  As used in this subsection, unless the context otherwise requires:
   (1)  “Data match system” means an automated process for matching and comparing obligor information from the centralized debt collection data bank described in subsection 27 with account information from financial institutions.
   (2)  The terms “account”, “bank”, “credit union”, “facility”, “financial institution”, “obligor”, and “savings and loan association” have the same meaning as defined in section 421.17A, subsection 1.

DIVISION IV
IDENTIFICATION OF WORKER MISCLASSIFICATION
    Sec. 19.  Section 421.17, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  31.  To assist the department of workforce development in identifying taxpayers who have failed to file a return or to pay the taxes, penalties, or interest required pursuant to any of the tax provisions administered by the department of workforce development. In assisting the department of workforce development, and notwithstanding any provisions to the contrary in sections 422.20 and 422.72, the director is authorized to provide the following information for purposes of identifying such taxpayers:
   a.  Withholding tax and payroll information.
   b.  The identity, including the date of birth and social security number, of any taxpayer who has previously been or is currently being audited or investigated by the department.
   c.  The result or most recent status of the audit or investigation.
    Sec. 20.  Section 422.20, subsection 3, paragraph a, Code 2009, is amended to read as follows:
   a.  Unless otherwise expressly permitted by section 8A.504, section 96.11, subsection 6, section 421.17, subsections 22, 23, and 26, and 31, sections 252B.9, 321.120, 421.19, 421.28, 422.72, and 452A.63, and this section, a tax return, return information, or investigative or audit information shall not be divulged to any person or entity, other than the taxpayer, the department, or internal revenue service for use in a matter unrelated to tax administration.
    Sec. 21.  Section 422.72, subsection 3, paragraph a, Code 2009, is amended to read as follows:
   a.  Unless otherwise expressly permitted by section 8A.504, section 96.11, subsection 6, section 421.17, subsections 22, 23, and 26, and 31, sections 252B.9, 321.120, 421.19, 421.28, 422.20, and 452A.63, and this section, a tax return, return information, or investigative or audit information shall not be divulged to any person or entity, other than the taxpayer, the department, or internal revenue service for use in a matter unrelated to tax administration.
    Sec. 22.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.

DIVISION V
FALSE CLAIMS FOR CREDIT
    Sec. 23.  Section 421.27, subsection 6, Code 2009, is amended to read as follows:
   6.  Improper receipt of refund or credit.  A person who makes an erroneous application for refund or credit shall be liable for any overpayment received or tax liability reduced plus interest at the rate in effect under section 421.7. In addition, a person who willfully makes a false or frivolous application for refund or credit with intent to evade tax or with intent to receive a refund or credit to which the person is not entitled is guilty of a fraudulent practice and is liable for a penalty equal to seventy-five percent of the refund or credit being claimed. Repayments Payments, penalties, and interest due under this subsection may be collected and enforced in the same manner as the tax imposed.

DIVISION VI
REFUND INTEREST ACCRUAL
    Sec. 24.  Section 421.60, subsection 2, paragraph e, Code 2009, is amended to read as follows:
   e.  Unless otherwise provided by law, all Iowa taxes which are administered by the department and which result in a refund shall accrue interest at the rate in effect under section 421.7 from the first day of the second third calendar month following the date of payment or the date the return was due to be filed or was filed, whichever is the latest.
    Sec. 25.  Section 422.16, subsection 9, Code 2009, is amended to read as follows:
   9.  a.  The amount of any overpayment of the individual income tax liability of the employee taxpayer, nonresident, or other person which may result from the withholding and payment of withheld tax by the employer or withholding agent to the department under subsections 1 and 12, as compared to the individual income tax liability of the employee taxpayer, nonresident, or other person properly and correctly determined under the provisions of section 422.4, to and including section 422.25, may be credited against any income tax or installment thereof then due the state of Iowa and any balance of one dollar or more shall be refunded to the employee taxpayer, nonresident or other person with interest at the rate in effect under section 421.7 for each month or fraction of a month, the interest to begin to accrue on the first day of the second third calendar month following the date the return was due to be filed or was filed, whichever is the later date.
   b.  Amounts of less than one dollar shall be refunded to the taxpayer, nonresident, or other person only upon written application, in accordance with section 422.73, and only if the application is filed within twelve months after the due date of the return. Refunds in the amount of one dollar or more provided for by this subsection shall be paid by the treasurer of state by warrants drawn by the director of the department of administrative services, or an authorized employee of the department, and the taxpayer’s return of income shall constitute a claim for refund for this purpose, except in respect to amounts of less than one dollar. There is appropriated, out of any funds in the state treasury not otherwise appropriated, a sum sufficient to carry out the provisions of this subsection.
    Sec. 26.  Section 422.25, subsection 3, Code 2009, is amended to read as follows:
   3.  If the amount of the tax as determined by the department is less than the amount paid, the excess shall be refunded with interest, the interest to begin to accrue on the first day of the second third calendar month following the date of payment or the date the return was due to be filed, or the extended due date by which the return was due to be filed if ninety percent of the tax was paid by the original due date, or was filed, whichever is the latest, at the rate in effect under section 421.7 counting each fraction of a month as an entire month under the rules prescribed by the director. If an overpayment of tax results from a net operating loss or net capital loss which is carried back to a prior year, the overpayment, for purposes of computing interest on refunds, shall be considered as having been made on the date a claim for refund or amended return carrying back the net operating loss or net capital loss is filed with the department or on the first day of the second third calendar month following the date of the actual payment of the tax, whichever is later. However, when the net operating loss or net capital loss carryback to a prior year eliminates or reduces an underpayment of tax due for an earlier year, the full amount of the underpayment of tax shall bear interest at the rate in effect under section 421.7 for each month counting each fraction of a month as an entire month from the due date of the tax for the earlier year to the last day of the taxable year in which the net operating loss or net capital loss occurred.
    Sec. 27.  Section 422.28, Code 2009, is amended to read as follows:
   422.28  Revision of tax.

   A taxpayer may appeal to the director for revision of the tax, interest, or penalties assessed at any time within sixty days from the date of the notice of the assessment of tax, additional tax, interest, or penalties. The director shall grant a hearing and if, upon the hearing, the director determines that the tax, interest, or penalties are excessive or incorrect, the director shall revise them according to the law and the facts and adjust the computation of the tax, interest, or penalties accordingly. The director shall notify the taxpayer by mail of the result of the hearing and shall refund to the taxpayer the amount, if any, paid in excess of the tax, interest, or penalties found by the director to be due, with interest after sixty days accruing from the date first day of the third calendar month following the date of payment by the taxpayer at the rate in effect under section 421.7 for each month or a fraction of a month.
    Sec. 28.  Section 422.91, Code 2009, is amended to read as follows:
   422.91  Credit for estimated tax —— accrual of interest.
   1.  a.  Any amount of estimated tax paid is a credit against the amount of tax due on a final, completed return, and any overpayment of five dollars or more shall be refunded to the taxpayer with interest, the interest to begin to accrue on the first day of the second third calendar month following the date of payment or the date the return was due to be filed or was filed, whichever is the latest, at the rate established under section 421.7, and the return constitutes a claim for refund for this purpose.
   b.  Amounts of less than five dollars shall be refunded to the taxpayer only upon written application in accordance with section 422.73, and only if the application is filed within twelve months after the due date for the return.
   2.  In lieu of claiming a refund, the taxpayer may elect to have the overpayment shown on its final, completed return for the taxable year credited to the tax liability for the following taxable year.
    Sec. 29.  Section 423.3, subsection 47A, paragraph c, Code Supplement 2009, is amended to read as follows:
   c.  For sales or rentals occurring on or after July 1, 2006, through June 30, 2012, a refund of the tax paid as provided in paragraph “b”, subparagraph (1), (2), (3), (4), (5), or (6), must be applied for, not later than six months after the month in which the sale or rental occurred, in the manner and on the forms provided by the department. Refunds shall only be of the state tax collected. Refunds authorized shall accrue interest at the rate in effect under section 421.7 from the first day of the second third calendar month following the date the refund claim is received by the department.
    Sec. 30.  Section 423.4, subsection 1, paragraph c, Code Supplement 2009, is amended to read as follows:
   c.  Refunds authorized under this subsection shall accrue interest at the rate in effect under section 421.7 from the first day of the second third calendar month following the date the refund claim is received by the department.
    Sec. 31.  Section 423.4, subsection 6, paragraph c, Code Supplement 2009, is amended to read as follows:
   c.  (1)  The owner of the collaborative educational facility shall, not more than one year after the final settlement has been made, make application to the department for any refund of the amount of the sales or use tax which shall have been paid upon any goods, wares, or merchandise, or services furnished, the application to be made in the manner and upon forms to be provided by the department, and the department shall forthwith promptly audit the claim and, if approved, issue a warrant to the owner of the collaborative educational facility in the amount of the sales or use tax which has been paid to the state of Iowa under the contract.

   (2)  Refunds authorized under this subsection shall accrue interest at the rate in effect under section 421.7 from the first day of the second third calendar month following the date the refund claim is received by the department.
    Sec. 32.  Section 450.94, subsection 3, Code 2009, is amended to read as follows:
   3.  If the amount paid is greater than the correct tax, penalty, and interest due, the department shall refund the excess with interest. Interest shall be computed at the rate in effect under section 421.7, under the rules prescribed by the director counting each fraction of a month as an entire month and the interest shall begin to accrue on the first day of the second third calendar month following the date of payment or on the date the return was due to be filed or was filed, whichever is the latest. However, the director shall not allow a claim for refund or credit that has not been filed with the department within three years after the tax payment upon which a refund or credit is claimed became due, or one year after the tax payment was made, whichever time is later. A determination by the department of the amount of tax, penalty, and interest due, or the amount of refund for excess tax paid, is final unless the person aggrieved by the determination appeals to the director for a revision of the determination within sixty days from the date of the notice of determination of tax, penalty, and interest due or refund owing or unless the taxpayer contests the determination by paying the tax, interest, and penalty and timely filing a claim for refund. The director shall grant a hearing, and upon the hearing the director shall determine the correct tax, penalty, and interest or refund due, and notify the appellant of the decision by mail. The decision of the director is final unless the appellant seeks judicial review of the director’s decision under section 450.59 within sixty days after the date of the notice of the director’s decision.
    Sec. 33.  Section 452A.65, Code 2009, is amended to read as follows:
   452A.65  Failure to promptly pay fuel taxes —— refunds —— interest and penalties —— successor liability.

   1.  In addition to the tax or additional tax, the taxpayer shall pay a penalty as provided in section 421.27. The taxpayer shall also pay interest on the tax or additional tax at the rate in effect under section 421.7 counting each fraction of a month as an entire month, computed from the date the return was required to be filed. If the amount of the tax as determined by the appropriate state agency is less than the amount paid, the excess shall be refunded with interest, the interest to begin to accrue on the first day of the second third calendar month following the date of payment or the date the return was due to be filed or was filed, whichever is the latest, at the rate in effect under section 421.7 counting each fraction of a month as an entire month under the rules prescribed by the appropriate state agency. Claims for refund filed under sections 452A.17 and 452A.21 shall accrue interest beginning with the first day of the second third calendar month following the date the refund claim is received by the department.
   2.  A report required of licensees or persons operating under division III, upon which no tax is due, is subject to a penalty of ten dollars if the report is not timely filed with the state department of transportation.
   3.  If a licensee or other person sells the licensee’s or other person’s business or stock of goods or quits the business, the licensee or other person shall prepare a final return and pay all tax due within the time required by law. The immediate successor to the licensee or other person, if any, shall withhold sufficient of the purchase price, in money or money’s worth, to pay the amount of any delinquent tax, interest or penalty due and unpaid. If the immediate successor of the business or stock of goods intentionally fails to withhold any amount due from the purchase price as provided in this paragraph, the immediate successor is personally liable for the payment of the taxes, interest and penalty accrued and unpaid on account of the operation of the business by the immediate former licensee or other person, except when the purchase is made in good faith as provided in section 421.28. However, a person foreclosing on a valid security interest or retaking possession of premises under a valid lease is not an “immediate successor” for purposes of this paragraph. The department may waive the liability of the immediate successor under this paragraph if the immediate successor exercised good faith in establishing the amount of the previous liability.
    Sec. 34.  EFFECTIVE UPON ENACTMENT AND APPLICABILITY.  This division of this Act, being deemed of immediate importance, takes effect upon enactment and applies to tax returns due on or after April 30, 2010.

DIVISION VII
TAX CODE REFERENCES TO MARRIED PERSONS
    Sec. 35.  Section 68A.601, Code 2009, is amended to read as follows:
   68A.601  Checkoff —— income tax.
   1.  a.  A person whose state income tax liability for any taxable year is one dollar and fifty cents or more may direct that one dollar and fifty cents of that liability be paid over to the Iowa election campaign fund when submitting the person’s state income tax return to the department of revenue.
   b.  In the case of a joint return of husband and wife married persons having a state income tax liability of three dollars or more, each spouse may direct that one dollar and fifty cents be paid to the fund.
   2.  a.  The director of revenue shall draft the income tax form to provide spaces on the tax return which the taxpayer may use to designate that contributions made under this section be credited to a specified political party as defined by section 43.2, or to the Iowa election campaign fund as a contribution to be shared by all such political parties in the manner prescribed by section 68A.602.
   b.  The form shall inform the taxpayer of the consequences of the choices provided under this section, but this information may be contained in a footnote or other suitable form if the director of revenue finds it is not feasible to place the information immediately above the signature line.
   3.  The action taken by a person for the checkoff is irrevocable.
    Sec. 36.  NEW SECTION.  422.4A  Determination of marital status.
   For purposes of this division, marital status shall be determined in accordance with the laws of this state.
    Sec. 37.  Section 422.5, subsection 3, Code Supplement 2009, is amended to read as follows:
   3.  a.  The tax shall not be imposed on a resident or nonresident whose net income, as defined in section 422.7, is thirteen thousand five hundred dollars or less in the case of married persons filing jointly or filing separately on a combined return, heads of household, and surviving spouses or nine thousand dollars or less in the case of all other persons; but in the event that the payment of tax under this division would reduce the net income to less than thirteen thousand five hundred dollars or nine thousand dollars as applicable, then the tax shall be reduced to that amount which would result in allowing the taxpayer to retain a net income of thirteen thousand five hundred dollars or nine thousand dollars as applicable. The preceding sentence does not apply to estates or trusts. For the purpose of this subsection, the entire net income, including any part of the net income not allocated to Iowa, shall be taken into account. For purposes of this subsection, net income includes all amounts of pensions or other retirement income received from any source which is not taxable under this division as a result of the government pension exclusions in section 422.7, or any other state law. If the combined net income of a husband and wife married persons exceeds thirteen thousand five hundred dollars, neither of them shall receive the benefit of this subsection, and it is immaterial whether they file a joint return or separate returns. However, if a husband and wife married persons file separate returns and have a combined net income of thirteen thousand five hundred dollars or less, neither spouse shall receive the benefit of this paragraph, if one spouse has a net operating loss and elects to carry back or carry forward the loss as provided in section 422.9, subsection 3. A person who is claimed as a dependent by another person as defined in section 422.12 shall not receive the benefit of this subsection if the person claiming the dependent has net income exceeding thirteen thousand five hundred dollars or nine thousand dollars as applicable or the person claiming the dependent and the person’s spouse have combined net income exceeding thirteen thousand five hundred dollars or nine thousand dollars as applicable.
   b.  In lieu of the computation in subsection 1, 2, or 3, if the married persons’, filing jointly or filing separately on a combined return, head of household’s, or surviving spouse’s net income exceeds thirteen thousand five hundred dollars, the regular tax imposed under this division shall be the lesser of the maximum state individual income tax rate times the portion of the net income in excess of thirteen thousand five hundred dollars or the regular tax liability computed without regard to this sentence. Taxpayers Married persons electing to file separately shall compute the alternate tax described in this paragraph using the total net income of the husband and wife both spouses. The alternate tax described in this paragraph does not apply if one spouse elects to carry back or carry forward the loss as provided in section 422.9, subsection 3.
    Sec. 38.  Section 422.5, subsection 3B, paragraphs a and b, Code Supplement 2009, are amended to read as follows:
   a.  The tax shall not be imposed on a resident or nonresident who is at least sixty-five years old on December 31 of the tax year and whose net income, as defined in section 422.7, is thirty-two thousand dollars or less in the case of married persons filing jointly or filing separately on a combined return, heads of household, and surviving spouses or twenty-four thousand dollars or less in the case of all other persons; but in the event that the payment of tax under this division would reduce the net income to less than thirty-two thousand dollars or twenty-four thousand dollars as applicable, then the tax shall be reduced to that amount which would result in allowing the taxpayer to retain a net income of thirty-two thousand dollars or twenty-four thousand dollars as applicable. The preceding sentence does not apply to estates or trusts. For the purpose of this subsection, the entire net income, including any part of the net income not allocated to Iowa, shall be taken into account. For purposes of this subsection, net income includes all amounts of pensions or other retirement income received from any source which is not taxable under this division as a result of the government pension exclusions in section 422.7, or any other state law. If the combined net income of a husband and wife married persons exceeds thirty-two thousand dollars, neither of them shall receive the benefit of this subsection, and it is immaterial whether they file a joint return or separate returns. However, if a husband and wife married persons file separate returns and have a combined net income of thirty-two thousand dollars or less, neither spouse shall receive the benefit of this paragraph, if one spouse has a net operating loss and elects to carry back or carry forward the loss as provided in section 422.9, subsection 3. A person who is claimed as a dependent by another person as defined in section 422.12 shall not receive the benefit of this subsection if the person claiming the dependent has net income exceeding thirty-two thousand dollars or twenty-four thousand dollars as applicable or the person claiming the dependent and the person’s spouse have combined net income exceeding thirty-two thousand dollars or twenty-four thousand dollars as applicable.
   b.  In lieu of the computation in subsection 1, 2, or 3, if the married persons’, filing jointly or filing separately on a combined return, head of household’s, or surviving spouse’s net income exceeds thirty-two thousand dollars, the regular tax imposed under this division shall be the lesser of the maximum state individual income tax rate times the portion of the net income in excess of thirty-two thousand dollars or the regular tax liability computed without regard to this sentence. Taxpayers Married persons electing to file separately shall compute the alternate tax described in this paragraph using the total net income of the husband and wife both spouses. The alternate tax described in this paragraph does not apply if one spouse elects to carry back or carry forward the loss as provided in section 422.9, subsection 3.
    Sec. 39.  Section 422.5, subsection 7, Code Supplement 2009, is amended to read as follows:
   7.  The state income tax of a taxpayer whose net income includes the gain or loss from the forfeiture of an installment real estate contract, the transfer of real or personal property securing a debt to a creditor in cancellation of that debt, or from the sale or exchange of property as a result of actual notice of foreclosure where the fair market value of the taxpayer’s assets exceeds the taxpayer’s liabilities immediately before such forfeiture, transfer, or sale or exchange shall not be greater than such excess, including any asset transferred within one hundred twenty days prior to such forfeiture, transfer, or sale or exchange. For purposes of this subsection, in the case of married taxpayers persons, except in the case of a husband and wife spouses who live apart at all times during the tax year, the assets and liabilities of both spouses shall be considered in determining if the fair market value of the taxpayer’s assets exceed the taxpayer’s liabilities.
    Sec. 40.  Section 422.7, subsection 16, paragraph c, Code Supplement 2009, is amended to read as follows:
   c.  The taxpayer’s net worth at the end of the tax year is less than seventy-five thousand dollars. In determining a taxpayer’s net worth at the end of the tax year a taxpayer shall include any asset transferred within one hundred twenty days prior to the end of the tax year without adequate and full consideration in money or money’s worth. In determining the taxpayer’s debt to asset ratio, the taxpayer shall include any asset transferred within one hundred twenty days prior to such forfeiture, transfer, or sale or exchange without adequate and full consideration in money or money’s worth. For purposes of this subsection, actual notice of foreclosure includes, but is not limited to, bankruptcy or written notice from a creditor of the creditor’s intent to foreclose where there is a reasonable belief that the creditor can force a sale of the asset. For purposes of this subsection, in the case of married taxpayers persons, except in the case of a husband and wife spouses who live apart at all times during the tax year, the assets and liabilities of both spouses shall be considered for purposes of determining the taxpayer’s net worth or the taxpayer’s debt to asset ratio.
    Sec. 41.  Section 422.7, subsection 31, Code Supplement 2009, is amended to read as follows:
   31.  For a person who is disabled, or is fifty-five years of age or older, or is the surviving spouse of an individual or a survivor having an insurable interest in an individual who would have qualified for the exemption under this subsection for the tax year, subtract, to the extent included, the total amount of a governmental or other pension or retirement pay, including, but not limited to, defined benefit or defined contribution plans, annuities, individual retirement accounts, plans maintained or contributed to by an employer, or maintained or contributed to by a self-employed person as an employer, and deferred compensation plans or any earnings attributable to the deferred compensation plans, up to a maximum of six thousand dollars for a person, other than a husband or wife married person, who files a separate state income tax return and up to a maximum of twelve thousand dollars for a husband and wife married persons who file a joint state income tax return. However, a surviving spouse who is not disabled or fifty-five years of age or older can only exclude the amount of pension or retirement pay received as a result of the death of the other spouse. A husband and wife Married persons filing separate state income tax returns or separately on a combined state return are allowed a combined maximum exclusion under this subsection of up to twelve thousand dollars. The twelve thousand dollar exclusion for married persons shall be allocated to the husband or wife each spouse individually in the proportion that each spouse’s respective the pension and retirement pay received by that spouse bears to the total combined pension and retirement pay received by both spouses.
    Sec. 42.  Section 422.9, subsection 1, Code Supplement 2009, is amended to read as follows:
   1.  An optional standard deduction, after deduction of federal income tax, equal to one thousand two hundred thirty dollars for a married person who files separately or a single person or equal to three thousand thirty dollars for a husband and wife married persons who file a joint return, a surviving spouse, or a head of household. The optional standard deduction shall not exceed the amount remaining after deduction of the federal income tax. The amount of federal income tax deducted shall be computed as provided in subsection 2, paragraph “b”.
    Sec. 43.  Section 422.12, subsection 2, paragraph a, Code Supplement 2009, is amended to read as follows:
   a.  A personal exemption credit in the following amounts:
   (1)  For an estate or trust, a single individual, or a married person filing a separate return, forty dollars.
   (2)  For a head of household, or a husband and wife married persons filing a joint return, eighty dollars.
   (3)  For each dependent, an additional forty dollars.
   (4)  For a single individual, husband, wife married person, or head of household, an additional exemption of twenty dollars for each of said individuals who has attained the age of sixty-five years before the close of the tax year or on the first day following the end of the tax year.
   (5)  For a single individual, husband, wife married person, or head of household, an additional exemption of twenty dollars for each of said individuals who is blind at the close of the tax year. For the purposes of this subparagraph, an individual is blind only if the individual’s central visual acuity does not exceed twenty-two hundredths in the better eye with correcting lenses, or if the individual’s visual acuity is greater than twenty-two hundredths but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than twenty degrees.
    Sec. 44.  Section 422.12, subsection 3, Code Supplement 2009, is amended by striking the subsection.
    Sec. 45.  Section 422.13, subsection 3, Code Supplement 2009, is amended to read as follows:
   3.  For purposes of determining the requirement for filing a return under subsection 1, the combined net income of a husband and wife married persons from sources taxable under this division shall be considered.
    Sec. 46.  Section 422.27, subsection 1, Code 2009, is amended to read as follows:
   1.  A final account of a personal representative, as defined in section 450.1, shall not be allowed by any court unless the account shows, and the judge of the court finds, that all taxes imposed by this division upon the personal representative, which have become payable, have been paid, and that all taxes which may become due are secured by bond or deposit, or are otherwise secured. The certificate of acquittances of the department of revenue is conclusive as to the payment of the tax to the extent of the acquittance. This In the case of married persons, this subsection does not apply if all property in the estate of a decedent is held in joint tenancy with right of survivorship by husband and wife the spouses alone.
    Sec. 47.  Section 428A.2, subsection 11, Code 2009, is amended to read as follows:
   11.  Deeds between husband and wife married persons, or parent and child, without actual consideration. A cancellation of indebtedness alone which is secured by the property being transferred and which is not greater than the fair market value of the property being transferred is not actual consideration within the meaning of this subsection.
    Sec. 48.  Section 450.22, subsection 2, Code 2009, is amended to read as follows:
   2.  However, this section does not apply and a return is not required to be filed even though real estate is part of the assets subject to tax under this chapter, if all of the assets are held in joint tenancy with right of survivorship between husband and wife married persons alone, or if the estate exclusively consists of property held in joint tenancy with the right of survivorship solely by the decedent and individuals listed in section 450.9 as individuals that are entirely exempt from Iowa inheritance tax and the estate does not have a federal estate tax obligation.
    Sec. 49.  Section 450.22, subsection 3, paragraph a, Code 2009, is amended to read as follows:
   a.  Assets held in joint tenancy with right of survivorship between husband and wife married persons alone.
    Sec. 50.  EFFECTIVE UPON ENACTMENT AND RETROACTIVE APPLICABILITY.  This division of this Act, being deemed of immediate importance, takes effect upon enactment and applies retroactively to January 1, 2009, for tax years beginning, property transferred, and decedents dying on or after that date.
EXPLANATION
   This bill relates to the policy administration of the tax and related laws by the department of revenue.
   Division I amends certain withholding tax credit programs related to jobs training and economic development. Currently, the industrial new jobs training program, the accelerated career education program, and the targeted jobs withholding program allow a certain percentage of the withholding taxes due by businesses to be remitted directly to either community colleges or pilot project cities, as applicable. Division I amends the programs to require that businesses pay their withholding taxes to the department of revenue and that community colleges and pilot project cities certify to the department the amount to be allocated to them under the programs. The department is required to verify those amounts before remitting the payments.
   The amendments in division I of the bill, by operation of law, also apply to the supplemental new jobs credit from withholding in Code section 15A.7, the quality jobs enterprise zone program in Code section 15A.9, and the new jobs credit from withholding in Code section 15E.197 because all of these programs refer to one or more of the provisions amended in division I.
   Division II amends Code sections 421.17, 421.30, and 441.21 to allow the director to approve an alternate property appraisal manual for use by city or county assessors. An alternate manual must be uniform and consistent with the state appraisal manual. 
   Division II also amends Code section 427B.4 to extend by two years the period for claiming the industrial real estate or cattle facilities property tax exemptions. Currently, a taxpayer cannot claim one of these exemptions unless it is claimed in the first year the property is eligible for the exemption.
   Division III provides for the establishment of a data match system by the department. A data match system means an automated process for matching and comparing obligor information from the department’s centralized debt collection data bank with certain account information from financial institutions. The director of revenue is authorized to require financial institutions to enter into agreements to provide such information for individuals who may owe debts to the state. If the data match system finds such an individual, the department is authorized to initiate an administrative action to levy against the individual’s account at the financial institution.
   Financial institutions are entitled to reimbursement for the actual and reasonable costs of complying with the data match system requirements. All information from the data match system is confidential and may be used only for purposes of collecting debt. The director of revenue is directed to adopt rules for the administration of the data match system and, in doing so, to make the system operate like similar systems already in use at other institutions and government agencies.
   Division IV allows the department to share certain taxpayer information with the department of workforce development for purposes of assisting in the identification of misclassified workers. The division is effective upon enactment.
   Division V relates to penalties for the filing of false or frivolous claims for tax credit. Code section 421.27 currently provides a penalty for the filing of false or frivolous refund claims. Division V extends this penalty to false or frivolous claims for credits as well.
   Division VI relates to the accrual of interest on tax refunds. Currently, there are many references in the Code to the date on which interest begins to accrue on tax refunds. That date is typically the first day of the second calendar month following the date the return was due to be filed. Division VI amends all such Code sections to specify that interest begins to accrue on the first day of the third calendar month following the date the return was due to be filed. The division is effective upon enactment and applies to returns due on or after April 30, 2010.
   Division VII relates to the use of gender neutral language regarding married persons in Code chapters 422, 428A, and 450. Currently, these chapters contain references to husband and wife. Division VII replaces such references with the term “married persons” or “spouse” as appropriate to the context.
   Currently, Code section 422.12 contains a provision stating that whether a person is married shall be determined according to section 7703 of the federal Internal Revenue Code. Federal law currently does not recognize same-sex couples as married taxpayers. Because of the Iowa Supreme Court’s decision on same-sex marriage in this state in Varnum v. Brien, division VII eliminates this provision and provides instead that the determination of marital status will now be made pursuant to the laws of the State of Iowa. Division VII is effective upon enactment and applies retroactively to January 1, 2009, for tax years beginning, property transferred, and decedents dying on or after that date.