Bill Text: IA SF104 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act reducing the individual and corporate income tax rates and including effective date and applicability provisions.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2015-02-03 - Subcommittee, Bolkcom, Anderson, and Quirmbach. S.J. 207. [SF104 Detail]
Download: Iowa-2015-SF104-Introduced.html
Senate File 104 - Introduced SENATE FILE BY ANDERSON A BILL FOR 1 An Act reducing the individual and corporate income tax rates 2 and including effective date and applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1875XS (2) 86 mm/sc PAG LIN 1 1 Section 1. Section 422.5, subsection 1, paragraphs a 1 2 through i, Code 2015, are amended to read as follows: 1 3 a. On all taxable income from zero through one thousand 1 4 dollars,thirty=sixtwenty=nine hundredths of one percent. 1 5 b. On all taxable income exceeding one thousand dollars but 1 6 not exceeding two thousand dollars,seventy=twofifty=eight 1 7 hundredths of one percent. 1 8 c. On all taxable income exceeding two thousand dollars but 1 9 not exceeding four thousand dollars,two and forty=threeone 1 10 and ninety=four hundredths percent. 1 11 d. On all taxable income exceeding four thousand dollars but 1 12 not exceeding nine thousand dollars,four and one=halfthree 1 13 and six=tenths percent. 1 14 e. On all taxable income exceeding nine thousand dollars 1 15 but not exceeding fifteen thousand dollars,six and twelve 1 16 hundredthsfour and nine=tenths percent. 1 17 f. On all taxable income exceeding fifteen thousand dollars 1 18 but not exceeding twenty thousand dollars,six and forty=eight 1 19five and eighteen hundredths percent. 1 20 g. On all taxable income exceeding twenty thousand dollars 1 21 but not exceeding thirty thousand dollars,six and eight=tenths 1 22five and forty=four hundredths percent. 1 23 h. On all taxable income exceeding thirty thousand dollars 1 24 but not exceeding forty=five thousand dollars,seven and 1 25 ninety=twosix and thirty=four hundredths percent. 1 26 i. On all taxable income exceeding forty=five thousand 1 27 dollars,eight and ninety=eightseven and eighteen hundredths 1 28 percent. 1 29 Sec. 2. Section 422.33, subsection 1, paragraphs a, b, c, 1 30 and d, Code 2015, are amended to read as follows: 1 31 a. On the first twenty=five thousand dollars of taxable 1 32 income, or any part thereof, the rate ofsixfour and 1 33 eight=tenths percent. 1 34 b. On taxable income between twenty=five thousand dollars 1 35 and one hundred thousand dollars or any part thereof, the rate 2 1 ofeightsix and four=tenths percent. 2 2 c. On taxable income between one hundred thousand dollars 2 3 and two hundred fifty thousand dollars or any part thereof, the 2 4 rate ofteneight percent. 2 5 d. On taxable income of two hundred fifty thousand dollars 2 6 or more, the rate oftwelvenine and six=tenths percent. 2 7 Sec. 3. EFFECTIVE DATE. This Act takes effect January 1, 2 8 2016. 2 9 Sec. 4. APPLICABILITY. This Act applies to tax years 2 10 beginning on or after January 1, 2016. 2 11 EXPLANATION 2 12 The inclusion of this explanation does not constitute agreement with 2 13 the explanation's substance by the members of the general assembly. 2 14 This bill reduces by approximately 20 percent the tax rate 2 15 for each of the nine tax brackets of the individual income tax 2 16 and for each of the four tax brackets of the corporate income 2 17 tax. 2 18 The current individual income tax rates range from a low of 2 19 .36 percent to a high of 8.98 percent. The bill changes these 2 20 rates to a low of .29 percent and a high of 7.18 percent. 2 21 The current corporate income tax rates range from a low of 6 2 22 percent to a high of 12 percent. The bill changes these rates 2 23 to a low of 4.80 percent and a high of 9.60 percent. 2 24 The bill takes effect January 1, 2016, and applies to tax 2 25 years beginning on or after that date. LSB 1875XS (2) 86 mm/sc
