Text: HSB223            Text: HSB225


House Study Bill 224

HOUSE FILE BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR 1 An Act exempting from the computation of net income for the 2 individual state income tax all governmental or other 3 pension or retirement pay, and including effective date and 4 retroactive applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2481YC (2) 85 mm/sc PAG LIN 1 1 Section 1. Section 422.7, subsection 31, Code 2013, is 1 2 amended to read as follows: 1 3 31. For a person who is disabled, or is fifty=five years of 1 4 age or older, or is the surviving spouse of an individual or 1 5 a survivor having an insurable interest in an individual who 1 6 would have qualified for the exemption under this subsection 1 7 for the tax year, subtract Subtract, to the extent included, 1 8 the total amount of a governmental or other pension or 1 9 retirement pay, including, but not limited to, defined benefit 1 10 or defined contribution plans, annuities, individual retirement 1 11 accounts, plans maintained or contributed to by an employer, 1 12 or maintained or contributed to by a self=employed person as 1 13 an employer, and deferred compensation plans or any earnings 1 14 attributable to the deferred compensation plans, up to a 1 15 maximum of six thousand dollars for a person, other than a 1 16 husband or wife, who files a separate state income tax return 1 17 and up to a maximum of twelve thousand dollars for a husband 1 18 and wife who file a joint state income tax return. However, a 1 19 surviving spouse who is not disabled or fifty=five years of age 1 20 or older can only exclude the amount of pension or retirement 1 21 pay received as a result of the death of the other spouse. A 1 22 husband and wife filing separate state income tax returns or 1 23 separately on a combined state return are allowed a combined 1 24 maximum exclusion under this subsection of up to twelve 1 25 thousand dollars. The twelve thousand dollar exclusion shall 1 26 be allocated to the husband or wife in the proportion that each 1 27 spouse's respective pension and retirement pay received bears 1 28 to total combined pension and retirement pay received. 1 29 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 1 30 immediate importance, takes effect upon enactment. 1 31 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 1 32 retroactively to January 1, 2013, for tax years beginning on 1 33 or after that date. 1 34 EXPLANATION 1 35 This bill exempts all governmental or other pension or 2 1 retirement pay from the individual income tax. "Governmental 2 2 or other pension or retirement pay" includes but is not limited 2 3 to defined benefit or defined contribution plans, annuities, 2 4 individual retirement accounts, plans maintained or contributed 2 5 to by an employer, or maintained or contributed to by a 2 6 self=employed person as an employer, and deferred compensation 2 7 plans or any earnings attributable to the deferred compensation 2 8 plans. 2 9 The bill takes effect upon enactment, and applies 2 10 retroactively to tax years beginning on or after January 1, 2 11 2013. LSB 2481YC (2) 85 mm/sc
Text: HSB223            Text: HSB225