Senate File 104 - Introduced SENATE FILE 104 BY ANDERSON A BILL FOR An Act reducing the individual and corporate 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 1875XS (2) 86 mm/sc

S.F. 104 Section 1. Section 422.5, subsection 1, paragraphs a 1 through i, Code 2015, are amended to read as follows: 2 a. On all taxable income from zero through one thousand 3 dollars, thirty-six twenty-nine hundredths of one percent. 4 b. On all taxable income exceeding one thousand dollars but 5 not exceeding two thousand dollars, seventy-two fifty-eight 6 hundredths of one percent. 7 c. On all taxable income exceeding two thousand dollars but 8 not exceeding four thousand dollars, two and forty-three one 9 and ninety-four hundredths percent. 10 d. On all taxable income exceeding four thousand dollars but 11 not exceeding nine thousand dollars, four and one-half three 12 and six-tenths percent. 13 e. On all taxable income exceeding nine thousand dollars 14 but not exceeding fifteen thousand dollars, six and twelve 15 hundredths four and nine-tenths percent. 16 f. On all taxable income exceeding fifteen thousand dollars 17 but not exceeding twenty thousand dollars, six and forty-eight 18 five and eighteen hundredths percent. 19 g. On all taxable income exceeding twenty thousand dollars 20 but not exceeding thirty thousand dollars, six and eight-tenths 21 five and forty-four hundredths percent. 22 h. On all taxable income exceeding thirty thousand dollars 23 but not exceeding forty-five thousand dollars, seven and 24 ninety-two six and thirty-four hundredths percent. 25 i. On all taxable income exceeding forty-five thousand 26 dollars, eight and ninety-eight seven and eighteen hundredths 27 percent. 28 Sec. 2. Section 422.33, subsection 1, paragraphs a, b, c, 29 and d, Code 2015, are amended to read as follows: 30 a. On the first twenty-five thousand dollars of taxable 31 income, or any part thereof, the rate of six four and 32 eight-tenths percent. 33 b. On taxable income between twenty-five thousand dollars 34 and one hundred thousand dollars or any part thereof, the rate 35 -1- LSB 1875XS (2) 86 mm/sc 1/ 2

S.F. 104 of eight six and four-tenths percent. 1 c. On taxable income between one hundred thousand dollars 2 and two hundred fifty thousand dollars or any part thereof, the 3 rate of ten eight percent. 4 d. On taxable income of two hundred fifty thousand dollars 5 or more, the rate of twelve nine and six-tenths percent. 6 Sec. 3. EFFECTIVE DATE. This Act takes effect January 1, 7 2016. 8 Sec. 4. APPLICABILITY. This Act applies to tax years 9 beginning on or after January 1, 2016. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill reduces by approximately 20 percent the tax rate 14 for each of the nine tax brackets of the individual income tax 15 and for each of the four tax brackets of the corporate income 16 tax. 17 The current individual income tax rates range from a low of 18 .36 percent to a high of 8.98 percent. The bill changes these 19 rates to a low of .29 percent and a high of 7.18 percent. 20 The current corporate income tax rates range from a low of 6 21 percent to a high of 12 percent. The bill changes these rates 22 to a low of 4.80 percent and a high of 9.60 percent. 23 The bill takes effect January 1, 2016, and applies to tax 24 years beginning on or after that date. 25 -2- LSB 1875XS (2) 86 mm/sc 2/ 2