Bill Text: IA HF2358 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act excluding from the computation of net income for state individual income tax purposes the net capital gain from sales of agricultural property located within certain cities to a housing developer, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-02-19 - Subcommittee: Hagenow, Hein and Jacoby. H.J. 306. [HF2358 Detail]
Download: Iowa-2019-HF2358-Introduced.html
House
File
2358
-
Introduced
HOUSE
FILE
2358
BY
MOMMSEN
A
BILL
FOR
An
Act
excluding
from
the
computation
of
net
income
for
state
1
individual
income
tax
purposes
the
net
capital
gain
from
2
sales
of
agricultural
property
located
within
certain
cities
3
to
a
housing
developer,
and
including
effective
date
and
4
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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2358
Section
1.
Section
422.7,
Code
2020,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
21A.
a.
Subtract
the
net
capital
gain
on
3
the
sale
of
real
property
used
in
a
farming
business
when
the
4
property
is
located
within
the
city
limits
of
an
incorporated
5
city
that
has
a
population
of
less
than
six
thousand
residents
6
based
on
the
most
recent
federal
decennial
census,
and
the
7
property
is
sold
to
a
housing
developer.
8
b.
Property
that
is
the
subject
of
the
net
capital
gain
9
deduction
under
this
subsection
is
not
eligible
for
a
net
10
capital
gain
deduction
under
subsection
21.
11
c.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
12
to
administer
this
subsection.
13
d.
As
used
in
this
subsection:
14
(1)
“Housing
developer”
means
a
person
who
is
in
the
15
business
of
building
residential
housing,
and
who
intends,
at
16
the
time
of
the
sale,
to
build
residential
housing
on
the
real
17
property
used
in
a
farming
business
that
is
the
subject
of
this
18
net
capital
gain
deduction.
19
(2)
“Real
property
used
in
a
farming
business”
means
all
20
tracts
of
land
and
the
improvements
and
structures
located
21
on
them
which
are
in
good
faith
used
primarily
for
a
farming
22
business.
23
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
24
importance,
takes
effect
upon
enactment.
25
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
26
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
27
or
after
that
date.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
excludes
from
the
computation
of
net
income
for
32
state
individual
income
tax
purposes
the
net
capital
gain
from
33
sales
of
agricultural
property
located
within
certain
cities
34
to
a
housing
developer.
35
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The
bill
excludes
the
net
capital
gain
on
the
sale
of
real
1
property
used
in
a
farming
business
when
the
property
is
2
located
within
the
city
limits
of
an
incorporated
city
that
has
3
a
population
of
less
than
6,000
residents
based
on
the
most
4
recent
federal
decennial
census,
and
the
property
is
sold
to
a
5
housing
developer.
6
The
bill
defines
“housing
developer”
and
“real
property
used
7
in
a
farming
business”.
8
The
department
of
revenue
is
required
to
adopt
rules
9
pursuant
to
Code
chapter
17A
to
administer
the
bill.
10
The
bill
takes
effect
upon
enactment
and
applies
11
retroactively
to
tax
years
beginning
on
or
after
January
1,
12
2020.
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