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House Study Bill 94 - IntroducedA Bill ForAn Act 1exempting from the state individual income tax the
2earnings from a burial trust fund, and including retroactive
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2021, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 48. Subtract, to the extent included,
4income from interest and earnings received from a burial trust
5fund as defined in section 523A.102.
6 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
7retroactively to January 1, 2021, for tax years beginning on
8or after that date.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill exempts from the state individual income tax
13the interest and earnings received from a burial trust fund.
14Burial trust funds, which are governed by Code chapter 523A,
15are irrevocable trusts established by a person with a financial
16institution for the purpose of funding the future purchase of
17cemetery merchandise, funeral merchandise, funeral services, or
18a combination thereof upon the death of the person named in the
19burial trust fund’s records or a related purchase agreement.
20The bill applies retroactively to January 1, 2021, for tax
21years beginning on or after that date.
-1-jm/jh
2earnings from a burial trust fund, and including retroactive
3applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2021, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 48. Subtract, to the extent included,
4income from interest and earnings received from a burial trust
5fund as defined in section 523A.102.
6 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
7retroactively to January 1, 2021, for tax years beginning on
8or after that date.
9EXPLANATION
10The inclusion of this explanation does not constitute agreement with
11the explanation’s substance by the members of the general assembly.
12This bill exempts from the state individual income tax
13the interest and earnings received from a burial trust fund.
14Burial trust funds, which are governed by Code chapter 523A,
15are irrevocable trusts established by a person with a financial
16institution for the purpose of funding the future purchase of
17cemetery merchandise, funeral merchandise, funeral services, or
18a combination thereof upon the death of the person named in the
19burial trust fund’s records or a related purchase agreement.
20The bill applies retroactively to January 1, 2021, for tax
21years beginning on or after that date.
-1-jm/jh