Text: HF109            Text: HF111
Complete Bill History


House File 110

HOUSE FILE BY SANDS Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the taxation of gain from the sale of farmland 2 to the state department of transportation and including a 3 retroactive applicability date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1917HH 82 6 mg/je/5 PAG LIN 1 1 Section 1. Section 422.7, Code 2007, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 50. Subtract, to the extent included, the 1 4 amount of gain realized from the sale of farmland to the state 1 5 department of transportation, if such gain is deposited into a 1 6 qualified pension plan pursuant to section 401 of the Internal 1 7 Revenue Code for the benefit of the taxpayer. If only a 1 8 portion of the gain realized is deposited into the qualified 1 9 pension plan, then only that portion shall be subtracted under 1 10 this subsection. For purposes of this subsection, "farmland" 1 11 means land of two acres or more that in good faith is used for 1 12 agricultural or horticultural purposes. 1 13 Sec. 2. RETROACTIVE APPLICABILITY DATE. This Act applies 1 14 retroactively to January 1, 2007, for tax years beginning on 1 15 or after that date. 1 16 EXPLANATION 1 17 This bill provides that if an owner of farmland sells the 1 18 land to the department of transportation, any gain realized 1 19 will be exempt from state individual income tax if such gain 1 20 is deposited into a qualified pension plan for the benefit of 1 21 the taxpayer. "Farmland" is land of two acres or more used 1 22 for agricultural or horticultural purposes. 1 23 The bill applies retroactively to January 1, 2007, for tax 1 24 years beginning on or after that date. 1 25 LSB 1917HH 82 1 26 mg:rj/je/5
Text: HF109            Text: HF111 Complete Bill History