S.F. 261 Section 1. NEW SECTION . 422.5A Exempt individuals. 1 1. Notwithstanding any other provision of law to the 2 contrary, an individual who is at least sixty-five years old 3 on December 31 of the tax year shall be exempt from the taxes 4 imposed under this division. 5 2. Notwithstanding any other provision of law to the 6 contrary, an individual exempt from the taxes imposed under 7 this division pursuant to subsection 1 shall not be required to 8 make and file a return pursuant to section 422.13. 9 3. Notwithstanding any other provision of law to the 10 contrary, a withholding agent, employer, or other person shall 11 not be required to deduct and withhold any amounts as required 12 in section 422.16 for or from an individual who is exempt from 13 the taxes imposed under this division pursuant to subsection 1. 14 Sec. 2. Section 422.12, subsection 2, paragraph a, 15 subparagraph (4), Code 2015, is amended by striking the 16 subparagraph. 17 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 18 immediate importance, takes effect upon enactment. 19 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 20 retroactively to January 1, 2015, for tax years beginning on 21 or after that date. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill exempts any individual who is at least 65 years 26 of age from the individual income tax. Exempt individuals are 27 no longer required to make and file an income tax return and 28 employers are no longer required to deduct and withhold wages 29 from exempt individuals. 30 The bill takes effect upon enactment and applies 31 retroactively to tax years beginning on or after January 1, 32 2015. 33 -1- LSB 2241XS (1) 86 mm/sc 1/ 1