Bill Text: IA SF2048 | 2013-2014 | 85th 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.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-27 - Subcommittee, Quirmbach, Bolkcom, and Smith. S.J. 135. [SF2048 Detail]
Download: Iowa-2013-SF2048-Introduced.html
Senate
File
2048
-
Introduced
SENATE
FILE
2048
BY
ANDERSON
A
BILL
FOR
An
Act
reducing
the
individual
and
corporate
income
tax
rates
1
and
including
effective
date
and
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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2048
Section
1.
Section
422.5,
subsection
1,
paragraphs
a
1
through
i,
Code
2014,
are
amended
to
read
as
follows:
2
a.
On
all
taxable
income
from
zero
through
one
thousand
3
dollars,
thirty-six
twenty-nine
hundredths
of
one
percent.
4
b.
On
all
taxable
income
exceeding
one
thousand
dollars
but
5
not
exceeding
two
thousand
dollars,
seventy-two
fifty-eight
6
hundredths
of
one
percent.
7
c.
On
all
taxable
income
exceeding
two
thousand
dollars
but
8
not
exceeding
four
thousand
dollars,
two
and
forty-three
one
9
and
ninety-four
hundredths
percent.
10
d.
On
all
taxable
income
exceeding
four
thousand
dollars
but
11
not
exceeding
nine
thousand
dollars,
four
and
one-half
three
12
and
six-tenths
percent.
13
e.
On
all
taxable
income
exceeding
nine
thousand
dollars
14
but
not
exceeding
fifteen
thousand
dollars,
six
and
twelve
15
hundredths
four
and
nine-tenths
percent.
16
f.
On
all
taxable
income
exceeding
fifteen
thousand
dollars
17
but
not
exceeding
twenty
thousand
dollars,
six
and
forty-eight
18
five
and
eighteen
hundredths
percent.
19
g.
On
all
taxable
income
exceeding
twenty
thousand
dollars
20
but
not
exceeding
thirty
thousand
dollars,
six
and
eight-tenths
21
five
and
forty-four
hundredths
percent.
22
h.
On
all
taxable
income
exceeding
thirty
thousand
dollars
23
but
not
exceeding
forty-five
thousand
dollars,
seven
and
24
ninety-two
six
and
thirty-four
hundredths
percent.
25
i.
On
all
taxable
income
exceeding
forty-five
thousand
26
dollars,
eight
and
ninety-eight
seven
and
eighteen
hundredths
27
percent.
28
Sec.
2.
Section
422.33,
subsection
1,
paragraphs
a
through
29
d,
Code
2014,
are
amended
to
read
as
follows:
30
a.
On
the
first
twenty-five
thousand
dollars
of
taxable
31
income,
or
any
part
thereof,
the
rate
of
six
four
and
32
eight-tenths
percent.
33
b.
On
taxable
income
between
twenty-five
thousand
dollars
34
and
one
hundred
thousand
dollars
or
any
part
thereof,
the
rate
35
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of
eight
six
and
four-tenths
percent.
1
c.
On
taxable
income
between
one
hundred
thousand
dollars
2
and
two
hundred
fifty
thousand
dollars
or
any
part
thereof,
the
3
rate
of
ten
eight
percent.
4
d.
On
taxable
income
of
two
hundred
fifty
thousand
dollars
5
or
more,
the
rate
of
twelve
nine
and
six-tenths
percent.
6
Sec.
3.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
7
2015.
8
Sec.
4.
APPLICABILITY.
This
Act
applies
to
tax
years
9
beginning
on
or
after
January
1,
2015.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
reduces
by
approximately
20
percent
the
tax
rate
14
for
each
of
the
nine
tax
brackets
of
the
individual
income
tax
15
and
for
each
of
the
four
tax
brackets
of
the
corporate
income
16
tax.
17
The
current
individual
income
tax
rates
range
from
a
low
of
18
.36
percent
to
a
high
of
8.98
percent.
The
bill
changes
these
19
rates
to
a
low
of
.29
percent
and
a
high
of
7.18
percent.
20
The
current
corporate
income
tax
rates
range
from
a
low
of
6
21
percent
to
a
high
of
12
percent.
The
bill
changes
these
rates
22
to
a
low
of
4.80
percent
and
a
high
of
9.60
percent.
23
The
bill
takes
effect
January
1,
2015,
and
applies
to
tax
24
years
beginning
on
or
after
that
date.
25
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