Text: SF2354            Text: SF2356
Complete Bill History


Senate File 2355

SENATE FILE BY BOLKCOM Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the reporting of income tax liability by 2 public utilities with the Iowa utilities board. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6028XS 81 5 kk/je/5 PAG LIN 1 1 Section 1. Section 476.8, Code 2005, is amended by adding 1 2 the following new unnumbered paragraph: 1 3 NEW UNNUMBERED PARAGRAPH. The board, in determining the 1 4 rates for a public utility which participates in the filing of 1 5 a consolidated income tax return with an affiliate, shall 1 6 calculate the amount of income tax liability of the public 1 7 utility to be included in the revenues of the utility as a 1 8 share of the consolidated income tax liability reported in the 1 9 return in proportion to the public utility's and affiliate's 1 10 respective positive taxable income, excluding from the 1 11 allocation an affiliate, if any, reporting no positive taxable 1 12 income on the consolidated income tax return. The board shall 1 13 include the lesser of the amount of income tax in the revenues 1 14 of the public utility calculated under this paragraph or the 1 15 income tax liability of the public utility calculated as 1 16 though the utility did not participate in the filing of a 1 17 consolidated income tax return with an affiliate. 1 18 EXPLANATION 1 19 This bill relates to the reporting of income taxes by a 1 20 public utility. The bill requires the board to calculate the 1 21 amount of income tax liability of a public utility that files 1 22 a consolidated tax return with an affiliate as a proportional 1 23 share of the total income tax liability of the return based on 1 24 the positive taxable income of the public utility and 1 25 affiliate. The bill requires the board to use for determining 1 26 rates the lesser of the amount of calculated proportional 1 27 share of public utility from a consolidated tax return or the 1 28 amount of income tax liability of the public utility without 1 29 considering whether or not the utility had filed a 1 30 consolidated tax return. 1 31 LSB 6028XS 81 1 32 kk:nh/je/5
Text: SF2354            Text: SF2356 Complete Bill History