Senate File 2145 - Introduced SENATE FILE 2145 BY WHITVER A BILL FOR An Act creating a reduction in the individual income tax rates 1 and including effective date and applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5916XS (2) 84 mm/sc

S.F. 2145 Section 1. Section 422.5, subsection 1, paragraphs a 1 through i, Code Supplement 2011, are amended to read as 2 follows: 3 a. On all taxable income from zero through one thousand 4 dollars, thirty-six thirty-two hundredths of one percent. 5 b. On all taxable income exceeding one thousand dollars 6 but not exceeding two thousand dollars, seventy-two sixty-five 7 hundredths of one percent. 8 c. On all taxable income exceeding two thousand dollars 9 but not exceeding four thousand dollars, two and forty-three 10 nineteen hundredths percent. 11 d. On all taxable income exceeding four thousand dollars 12 but not exceeding nine thousand dollars, four and one-half five 13 hundredths percent. 14 e. On all taxable income exceeding nine thousand dollars 15 but not exceeding fifteen thousand dollars, six five and twelve 16 fifty-one hundredths percent. 17 f. On all taxable income exceeding fifteen thousand dollars 18 but not exceeding twenty thousand dollars, six and forty-eight 19 eighty-three hundredths percent. 20 g. On all taxable income exceeding twenty thousand dollars 21 but not exceeding thirty thousand dollars, six and eight-tenths 22 twelve hundredths percent. 23 h. On all taxable income exceeding thirty thousand dollars 24 but not exceeding forty-five thousand dollars, seven and 25 ninety-two thirteen hundredths percent. 26 i. On all taxable income exceeding forty-five thousand 27 dollars, eight and ninety-eight eight hundredths percent. 28 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 29 2013. 30 Sec. 3. APPLICABILITY. This Act applies to tax years 31 beginning on or after January 1, 2013. 32 EXPLANATION 33 This bill reduces by approximately 10 percent the tax rate 34 for each of the nine tax brackets of the individual income tax. 35 -1- LSB 5916XS (2) 84 mm/sc 1/ 2

S.F. 2145 The current individual income tax rates range from a low of 1 .36 percent to a high of 8.98 percent. The bill changes these 2 rates to a low of .32 percent to a high of 8.08 percent. 3 The bill takes effect January 1, 2013, and applies to tax 4 years beginning on or after that date. 5 -2- LSB 5916XS (2) 84 mm/sc 2/ 2