Senate File 2379 - Introduced




                                 SENATE FILE       
                                 BY  SMITH

                                      A BILL FOR

  1 An Act exempting from the Iowa individual income tax the amount
  2    of income resulting from prize money and medals received
  3    from competition in the olympic or paralympic games, and
  4    including retroactive applicability provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5377XS (5) 87
    mm/jh

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2018, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  18.  a.  Subtract, to the extent included,
  1  4 the amount of income resulting from the value of any medal
  1  5 awarded in, or any prize money received from the United States
  1  6 olympic committee on account of, competition in the olympic
  1  7 games or paralympic games.
  1  8    b.  The subtraction in paragraph "a" does not apply to a
  1  9 taxpayer whose net income exceeds one million dollars for the
  1 10 tax year, or five hundred thousand dollars in the case of a
  1 11 married person filing separate returns or separately on a
  1 12 combined return.
  1 13    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 14 retroactively to January 1, 2018, for tax years beginning on
  1 15 or after that date.
  1 16                           EXPLANATION
  1 17 The inclusion of this explanation does not constitute agreement with
  1 18 the explanation's substance by the members of the general assembly.
  1 19    This bill relates to the taxation of medals or prize money
  1 20 received from competition in the olympic or paralympic games.
  1 21    For federal income tax purposes pursuant to Internal Revenue
  1 22 Code {74(d), enacted by Congress in 2016, income resulting from
  1 23 the value of any medal awarded in, or any prize money received
  1 24 from the United States olympic committee on account of,
  1 25 competition in the olympic games or paralympic games is exempt
  1 26 from the federal income tax for individuals whose adjusted
  1 27 gross income does not exceed $1 million ($500,000 for married
  1 28 individuals filing separately).  However, Iowa has not coupled
  1 29 with (enacted) this federal provision for purposes of the Iowa
  1 30 individual income tax.
  1 31    The bill exempts from the Iowa individual income tax the
  1 32 amount of income resulting from the value of any medal awarded
  1 33 in, or any prize money received from the United States olympic
  1 34 committee on account of, competition in the olympic games or
  1 35 paralympic games to any taxpayer whose net income does not
  2  1 exceed $1 million ($500,000 in the case of a married person
  2  2 filing separate returns or separately on a combined return).
  2  3    The bill applies retroactively to January 1, 2018, for tax
  2  4 years beginning on or after that date.
       LSB 5377XS (5) 87
       mm/jh