Bill Text: IA SF359 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to the corporate income tax rates imposed on corporations and including retroactive applicability provisions.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-03-03 - Subcommittee, Bolkcom, Anderson, and Quirmbach. S.J. 429. [SF359 Detail]

Download: Iowa-2015-SF359-Introduced.html

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Senate File 359 - Introduced




                                 SENATE FILE       
                                 BY  ZAUN

                                      A BILL FOR

  1 An Act relating to the corporate income tax rates imposed
  2    on corporations and including retroactive applicability
  3    provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 422.33, subsection 1, Code 2015, is
  1  2 amended by striking the subsection and inserting in lieu
  1  3 thereof the following:
  1  4    1.  a.  A tax is imposed annually upon each corporation doing
  1  5 business in this state, or deriving income from sources within
  1  6 this state, at the rate of six percent of the taxable income
  1  7 received by the corporation during the income year.
  1  8    b.  For purposes of this section, "taxable income" means the
  1  9 net income as calculated in section 422.35 and determined to
  1 10 be reasonably attributable to Iowa pursuant to subsections 2
  1 11 and 3.
  1 12    Sec. 2.  Section 422.33, subsection 1A, Code 2015, is amended
  1 13 to read as follows:
  1 14    1A.  There is imposed upon each corporation exempt from
  1 15 the general business tax on corporations by section 422.34,
  1 16 subsection 2, a tax at the rates rate specified in subsection 1
  1 17 upon the state's apportioned share computed in accordance with
  1 18 subsections 2 and 3 of the unrelated business income computed
  1 19 in accordance with the Internal Revenue Code and with the
  1 20 adjustments set forth in section 422.35.
  1 21    Sec. 3.  Section 422.33, subsection 4, paragraph a, Code
  1 22 2015, is amended to read as follows:
  1 23    a.  In addition to all taxes imposed under this division,
  1 24 there is imposed upon each corporation doing business within
  1 25 the state the greater of the tax determined in subsection 1,
  1 26 paragraphs "a" through "d" or the state alternative minimum tax
  1 27 equal to sixty percent of the maximum state corporate income
  1 28 tax rate, rounded to the nearest one=tenth of one percent, of
  1 29 the state alternative minimum taxable income of the taxpayer
  1 30 computed under this subsection.
  1 31    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies
  1 32 retroactively to January 1, 2015, for tax years beginning on
  1 33 or after that date.
  1 34                           EXPLANATION
  1 35 The inclusion of this explanation does not constitute agreement with
  2  1 the explanation's substance by the members of the general assembly.
  2  2    This bill relates to the tax rates applied to corporations
  2  3 under the corporate income tax.
  2  4    Currently, the corporate income tax is imposed in a
  2  5 progressive manner using four income brackets with increasing
  2  6 rates: on the first $25,000 of taxable income, the rate is
  2  7 6 percent; on taxable income between $25,000 and $100,000,
  2  8 the rate is 8 percent; on taxable income between $100,000 and
  2  9 $250,000, the rate is 10 percent; on taxable income of $250,000
  2 10 or more, the rate is 12 percent. The bill eliminates this
  2 11 tiered bracket and rate structure and imposes the tax at the
  2 12 rate of 6 percent on the corporation's taxable income.
  2 13    The bill applies retroactively to tax years beginning on or
  2 14 after January 1, 2015.
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