Bill Text: IA SF351 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act relating to the tax rates imposed on corporations and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 15-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [SF351 Detail]
Download: Iowa-2011-SF351-Introduced.html
Senate
File
351
-
Introduced
SENATE
FILE
351
BY
CHELGREN
,
ZAUN
,
DIX
,
WHITVER
,
BACON
,
HAHN
,
BEHN
,
HOUSER
,
ANDERSON
,
HAMERLINCK
,
SEYMOUR
,
ERNST
,
BERTRAND
,
SORENSON
,
and
McKINLEY
A
BILL
FOR
An
Act
relating
to
the
tax
rates
imposed
on
corporations
and
1
including
retroactive
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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351
Section
1.
Section
422.33,
subsection
1,
Code
2011,
is
1
amended
by
striking
the
subsection
and
inserting
in
lieu
2
thereof
the
following:
3
1.
a.
A
tax
is
imposed
annually
upon
each
corporation
4
doing
business
in
this
state,
or
deriving
income
from
sources
5
within
this
state,
at
the
rate
of
six
percent
of
the
net
income
6
received
by
the
corporation
during
the
income
year.
7
b.
For
purposes
of
this
section:
8
(1)
“Income
from
sources
within
this
state”
means
income
9
from
real,
tangible,
or
intangible
property
located
or
having
10
a
situs
in
this
state.
11
(2)
“Net
income”
means
the
net
income
as
calculated
in
12
section
422.35
and
determined
to
be
reasonably
attributable
to
13
Iowa
pursuant
to
subsections
2
and
3.
14
Sec.
2.
Section
422.33,
subsection
1A,
Code
2011,
is
amended
15
to
read
as
follows:
16
1A.
There
is
imposed
upon
each
corporation
exempt
from
17
the
general
business
tax
on
corporations
by
section
422.34,
18
subsection
2
,
a
tax
at
the
rates
rate
specified
in
subsection
1
19
upon
the
state’s
apportioned
share
computed
in
accordance
with
20
subsections
2
and
3
of
the
unrelated
business
income
computed
21
in
accordance
with
the
Internal
Revenue
Code
and
with
the
22
adjustments
set
forth
in
section
422.35
.
23
Sec.
3.
Section
422.33,
subsection
4,
unnumbered
paragraph
24
1,
Code
2011,
is
amended
to
read
as
follows:
25
In
addition
to
all
taxes
imposed
under
this
division
,
26
there
is
imposed
upon
each
corporation
doing
business
within
27
the
state
the
greater
of
the
tax
determined
in
subsection
1
,
28
paragraphs
“a”
through
“d”
or
the
state
alternative
minimum
tax
29
equal
to
sixty
percent
of
the
maximum
state
corporate
income
30
tax
rate,
rounded
to
the
nearest
one-tenth
of
one
percent,
of
31
the
state
alternative
minimum
taxable
income
of
the
taxpayer
32
computed
under
this
subsection
.
33
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
34
retroactively
to
January
1,
2011,
for
tax
years
beginning
on
35
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351
or
after
that
date.
1
EXPLANATION
2
This
bill
relates
to
the
tax
rates
applied
to
corporations.
3
Currently,
the
corporate
income
tax
is
imposed
in
a
4
progressive
manner
using
four
income
brackets
with
increasing
5
rates:
on
the
first
$25,000
of
income,
the
rate
is
6
percent;
6
on
income
between
$25,000
and
$100,000,
the
rate
is
8
percent;
7
on
income
between
$100,000
and
$250,000,
the
rate
is
10
8
percent;
on
income
of
$250,000
or
more,
the
rate
is
12
percent.
9
The
bill
eliminates
this
tiered
bracket
and
rate
structure
and
10
imposes
the
tax
at
the
rate
of
6
percent
on
the
corporation’s
11
net
income
attributable
to
Iowa.
12
The
bill
applies
retroactively
to
tax
years
beginning
on
or
13
after
January
1,
2011.
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