Bill Text: IA HF2640 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act exempting from the state individual income tax the earnings from a burial trust fund, and including retroactive applicability provisions.(Formerly HSB 628.)

Spectrum: Partisan Bill (? 1-0)

Status: (Introduced) 2020-06-09 - Introduced, placed on Ways and Means calendar. H.J. 669. [HF2640 Detail]

Download: Iowa-2019-HF2640-Introduced.html
House File 2640 - Introduced HOUSE FILE 2640 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 628) A BILL FOR An Act exempting from the state individual income tax the 1 earnings from a burial trust fund, and including retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5863HV (1) 88 jm/jh
H.F. 2640 Section 1. Section 422.7, Code 2020, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 48. Subtract, to the extent included, 3 income from interest and earnings received from a burial trust 4 fund as defined in section 523A.102. 5 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 6 retroactively to January 1, 2020, for tax years beginning on 7 or after that date. 8 EXPLANATION 9 The inclusion of this explanation does not constitute agreement with 10 the explanation’s substance by the members of the general assembly. 11 This bill exempts from the state individual income tax 12 the interest and earnings received from a burial trust fund. 13 Burial trust funds, which are governed by Code chapter 523A, 14 are irrevocable trusts established by a person with a financial 15 institution for the purpose of funding the future purchase of 16 cemetery merchandise, funeral merchandise, funeral services, or 17 a combination thereof upon the death of the person named in the 18 burial trust fund’s records or a related purchase agreement. 19 The bill applies retroactively to January 1, 2020, for tax 20 years beginning on or after that date. 21 -1- LSB 5863HV (1) 88 jm/jh 1/ 1
feedback