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 TLSB 5784YH (3) 88 jm/jh
H.F. 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 -1- LSB 5784YH (3) 88 jm/jh 1/ 2
H.F. 2358 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. 13 -2- LSB 5784YH (3) 88 jm/jh 2/ 2
feedback