House
Study
Bill
235
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
withholding
of
state
income
tax
from
the
1
income
of
certain
nonresident
partners
of
pass-through
2
entities,
and
including
effective
date
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1808YC
(2)
90
jm/jh
H.F.
_____
Section
1.
2021
Iowa
Acts,
chapter
151,
section
15,
is
1
amended
to
read
as
follows:
2
SEC.
15.
APPLICABILITY.
This
3
1.
Except
as
provided
in
subsection
2,
this
division
of
this
4
Act
applies
to
tax
years
beginning
on
or
after
January
1,
2022.
5
2.
The
section
of
this
division
of
this
Act
amending
section
6
422.16,
subsection
12,
paragraph
“a”,
applies
to
tax
years
7
beginning
on
or
after
January
1,
2024.
8
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
9
importance,
takes
effect
upon
enactment.
10
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
11
retroactively
to
tax
years
beginning
on
or
after
January
1,
12
2022,
but
before
January
1,
2024.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
relates
to
withholding
of
state
income
tax
from
17
the
income
of
certain
nonresident
partners
of
a
pass-through
18
entity.
19
The
bill
amends
2021
Iowa
Acts,
chapter
151,
to
delay
the
20
applicability
of
a
provision
of
that
Act.
As
a
result,
for
tax
21
years
beginning
on
or
after
January
1,
2022,
but
before
January
22
1,
2024,
a
withholding
agent
(entity
required
to
withhold
state
23
income
tax)
shall
not
be
required
to
withhold
state
income
tax
24
from
a
nonresident
who
is
subject
to
the
provisions
of
Code
25
section
422.16B
(pass-through
entity
composite
returns)
if
26
the
nonresident
is
not
otherwise
subject
to
withholding
under
27
Code
section
422.16(1).
Commencing
with
tax
years
beginning
28
on
or
after
January
1,
2024,
that
provision
of
2021
Iowa
Acts,
29
chapter
151,
takes
effect
and
such
a
taxpayer
shall
be
subject
30
to
withholding
under
Code
section
422.16.
31
The
bill
does
not
change
the
tax
liability
of
the
nonresident
32
only
the
withholding
requirement
of
such
tax
from
income.
33
The
bill
takes
effect
upon
enactment
and
applies
34
retroactively
to
tax
years
beginning
on
or
after
January
1,
35
-1-
LSB
1808YC
(2)
90
jm/jh
1/
2
H.F.
_____
2022,
but
before
January
1,
2024.
1
-2-
LSB
1808YC
(2)
90
jm/jh
2/
2