House File 2323 - Introduced HOUSE FILE 2323 BY COWNIE A BILL FOR An Act reducing the individual income tax rates and including 1 effective date and applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5785YH (2) 85 mm/sc

H.F. 2323 Section 1. Section 422.5, subsection 1, paragraphs a 1 through i, Code 2014, are amended to read as follows: 2 a. On all taxable income from zero through one thousand 3 dollars, thirty-six thirty-two hundredths of one percent. 4 b. On all taxable income exceeding one thousand dollars 5 but not exceeding two thousand dollars, seventy-two sixty-five 6 hundredths of one percent. 7 c. On all taxable income exceeding two thousand dollars 8 but not exceeding four thousand dollars, two and forty-three 9 nineteen hundredths percent. 10 d. On all taxable income exceeding four thousand dollars 11 but not exceeding nine thousand dollars, four and one-half five 12 hundredths percent. 13 e. On all taxable income exceeding nine thousand dollars 14 but not exceeding fifteen thousand dollars, six and twelve 15 hundredths five and fifty-one hundredths percent. 16 f. On all taxable income exceeding fifteen thousand dollars 17 but not exceeding twenty thousand dollars, six and forty-eight 18 five and eighty-three hundredths percent. 19 g. On all taxable income exceeding twenty thousand dollars 20 but not exceeding thirty thousand dollars, six and eight-tenths 21 twelve hundredths percent. 22 h. On all taxable income exceeding thirty thousand dollars 23 but not exceeding forty-five thousand dollars, seven and 24 ninety-two thirteen hundredths percent. 25 i. On all taxable income exceeding forty-five thousand 26 dollars, eight and ninety-eight eight hundredths percent. 27 Sec. 2. EFFECTIVE DATE. This Act takes effect January 1, 28 2015. 29 Sec. 3. APPLICABILITY. This Act applies to tax years 30 beginning on or after January 1, 2015. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill reduces by approximately 10 percent the tax rate 35 -1- LSB 5785YH (2) 85 mm/sc 1/ 2

H.F. 2323 for each of the nine tax brackets of the individual income tax. 1 The current individual income tax rates range from a low of 2 .36 percent to a high of 8.98 percent. The bill changes these 3 rates to a low of .32 percent and a high of 8.08 percent. 4 The bill takes effect January 1, 2015, and applies to tax 5 years beginning on or after that date. 6 -2- LSB 5785YH (2) 85 mm/sc 2/ 2