Bill Text: IA HF291 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to withholding Iowa state income tax from retirement income, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-02-14 - Introduced, referred to Ways and Means. H.J. 306. [HF291 Detail]
Download: Iowa-2023-HF291-Introduced.html
House
File
291
-
Introduced
HOUSE
FILE
291
BY
ISENHART
A
BILL
FOR
An
Act
relating
to
withholding
Iowa
state
income
tax
from
1
retirement
income,
and
including
effective
date
and
2
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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291
Section
1.
Section
422.16,
subsection
1,
paragraph
c,
Code
1
2023,
is
amended
to
read
as
follows:
2
c.
For
the
purposes
of
this
subsection
,
at
a
rate
specified
3
by
the
department,
state
income
tax
shall
be
withheld
from
4
pensions,
annuities,
other
similar
periodic
payments,
and
other
5
income
payments
of
those
persons
whose
primary
residence
is
in
6
Iowa
in
those
circumstances
in
which
those
persons
have
federal
7
income
tax
withheld
from
pensions,
annuities,
other
similar
8
periodic
payments,
and
other
income
payments
under
sections
9
3402(o),
3402(p),
3402(s),
3405(a),
3405(b),
and
3405(c)
of
10
the
Internal
Revenue
Code
at
a
rate
to
be
specified
by
the
11
department
made
to
Iowa
residents
if
the
payments
are
subject
12
to
Iowa
tax
.
13
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
14
importance,
takes
effect
upon
enactment.
15
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
16
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
17
or
after
that
date.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
withholding
Iowa
state
income
tax
from
22
retirement
income.
23
Under
current
law,
most
retirement
income
is
no
longer
24
subject
to
Iowa
income
tax.
The
bill
strikes
provisions
25
requiring
the
withholding
of
state
income
tax
from
retirement
26
income
payments
made
to
Iowa
residents
if
the
retirement
income
27
is
no
longer
subject
to
Iowa
income
tax.
28
The
bill
takes
effect
upon
enactment,
and
applies
29
retroactively
to
January
1,
2023,
for
tax
years
beginning
on
30
or
after
that
date.
31
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