Print
House File 291 - IntroducedA Bill ForAn Act 1relating to withholding Iowa state income tax from
2retirement income, and including effective date and
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.16, subsection 1, paragraph c, Code
22023, is amended to read as follows:
3c. For the purposes of this subsection, at a rate specified
4by the department, state income tax shall be withheld from
5pensions, annuities, other similar periodic payments, and other
6income payments of those persons whose primary residence is in
7Iowa in those circumstances in which those persons have federal
8income tax withheld from pensions, annuities, other similar
9periodic payments, and other income payments under sections
103402(o), 3402(p), 3402(s), 3405(a), 3405(b), and 3405(c) of
11the Internal Revenue Code at a rate to be specified by the
12department made to Iowa residents if the payments are subject
13to Iowa tax.
14 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
15importance, takes effect upon enactment.
16 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
17retroactively to January 1, 2023, for tax years beginning on
18or after that date.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to withholding Iowa state income tax from
23retirement income.
24Under current law, most retirement income is no longer
25subject to Iowa income tax. The bill strikes provisions
26requiring the withholding of state income tax from retirement
27income payments made to Iowa residents if the retirement income
28is no longer subject to Iowa income tax.
29The bill takes effect upon enactment, and applies
30retroactively to January 1, 2023, for tax years beginning on
31or after that date.
-1-jm/jh
2retirement income, and including effective date and
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.16, subsection 1, paragraph c, Code
22023, is amended to read as follows:
3c. For the purposes of this subsection, at a rate specified
4by the department, state income tax shall be withheld from
5pensions, annuities, other similar periodic payments, and other
6income payments of those persons whose primary residence is in
7Iowa in those circumstances in which those persons have federal
8income tax withheld from pensions, annuities, other similar
9periodic payments, and other income payments under sections
103402(o), 3402(p), 3402(s), 3405(a), 3405(b), and 3405(c) of
11the Internal Revenue Code at a rate to be specified by the
12department made to Iowa residents if the payments are subject
13to Iowa tax.
14 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
15importance, takes effect upon enactment.
16 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
17retroactively to January 1, 2023, for tax years beginning on
18or after that date.
19EXPLANATION
20The inclusion of this explanation does not constitute agreement with
21the explanation’s substance by the members of the general assembly.
22This bill relates to withholding Iowa state income tax from
23retirement income.
24Under current law, most retirement income is no longer
25subject to Iowa income tax. The bill strikes provisions
26requiring the withholding of state income tax from retirement
27income payments made to Iowa residents if the retirement income
28is no longer subject to Iowa income tax.
29The bill takes effect upon enactment, and applies
30retroactively to January 1, 2023, for tax years beginning on
31or after that date.
-1-jm/jh