Senate File 2206 - Introduced SENATE FILE 2206 BY CHELGREN A BILL FOR An Act providing an exemption from the computation of net 1 income for the individual state income tax of all social 2 security benefits and including retroactive applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5884XS (2) 84 mm/sc

S.F. 2206 Section 1. Section 422.7, subsection 13, Code Supplement 1 2011, is amended by striking the subsection and inserting in 2 lieu thereof the following: 3 13. Subtract, to the extent included, the amount of social 4 security benefits taxable under section 86 of the Internal 5 Revenue Code. 6 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 7 retroactively to January 1, 2012, for tax years beginning on 8 or after that date. 9 EXPLANATION 10 This bill relates to the state taxation of social security 11 benefits. Under current law, 23 percent of a taxpayer’s social 12 security benefits are taxable in this state for tax year 2012. 13 The taxable amount is set to be reduced to 11 percent in 2013 14 and then completely phased out in 2014. 15 The bill provides that for tax years beginning on or after 16 January 1, 2012, 100 percent of a taxpayer’s social security 17 benefits are exempt from the state individual income tax. 18 The bill applies retroactively to January 1, 2012, for tax 19 years beginning on or after that date. 20 -1- LSB 5884XS (2) 84 mm/sc 1/ 1