Bill Text: IA SF486 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act providing a reduction in the income tax rates for corporations doing business in the state and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-12-31 - END OF 2011 ACTIONS [SF486 Detail]
Download: Iowa-2011-SF486-Introduced.html
Senate
File
486
-
Introduced
SENATE
FILE
486
BY
FEENSTRA
A
BILL
FOR
An
Act
providing
a
reduction
in
the
income
tax
rates
for
1
corporations
doing
business
in
the
state
and
including
2
retroactive
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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S.F.
486
Section
1.
Section
422.33,
subsection
1,
Code
2011,
is
1
amended
to
read
as
follows:
2
1.
a.
A
tax
is
imposed
annually
upon
each
corporation
doing
3
business
in
this
state,
or
deriving
income
from
sources
within
4
this
state,
in
an
amount
computed
by
applying
the
following
5
rates
of
taxation
to
the
net
income
received
by
the
corporation
6
during
the
income
year:
7
a.
(1)
On
the
first
twenty-five
thousand
dollars
of
taxable
8
income,
or
any
part
thereof,
the
rate
of
six
three
percent.
9
b.
(2)
On
taxable
income
between
twenty-five
thousand
10
dollars
and
one
hundred
thousand
dollars
or
any
part
thereof,
11
the
rate
of
eight
four
percent.
12
c.
(3)
On
taxable
income
between
one
hundred
thousand
13
dollars
and
two
hundred
fifty
thousand
dollars
or
any
part
14
thereof,
the
rate
of
ten
five
percent.
15
d.
(4)
On
taxable
income
of
two
hundred
fifty
thousand
16
dollars
or
more,
the
rate
of
twelve
six
percent.
17
b.
“Income
from
sources
within
this
state”
means
income
from
18
real,
tangible,
or
intangible
property
located
or
having
a
19
situs
in
this
state.
20
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
21
retroactively
to
January
1,
2011,
for
tax
years
beginning
on
22
or
after
that
date.
23
EXPLANATION
24
This
bill
reduces
by
half
the
tax
rates
imposed
on
25
corporations
doing
business
in
the
state.
Currently,
there
are
26
four
corporate
income
tax
brackets.
The
bill
reduces
the
tax
27
rate
for
each
bracket
by
half:
28
1.
On
the
first
$25,000
of
taxable
income,
the
new
rate
is
29
3
percent.
30
2.
On
taxable
income
between
$25,000
and
$100,000,
the
new
31
rate
is
4
percent.
32
3.
On
taxable
income
between
$100,000
and
$250,000,
the
new
33
rate
is
5
percent.
34
4.
On
taxable
income
of
$250,000
or
more,
the
new
rate
is
35
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