Proyectos de ley › 88.ª Asamblea General
Relating to the Iowa educational savings plan trust by permitting the use of funds for certain beneficiaries to attend out-of-state elementary or secondary schools, and including retroactive applicability provisions
Presentado por el comité Education de la Cámara
Temas:K–12 education
La misma legislación: HF 2024
Dónde está ahora
- Hecho: Presentado16 de enero de 2020
- Hecho: Subcomité27 de enero de 2020
- Hecho: Comité de la Cámara10 de febrero de 2020
- Hecho: Lo aprueba la Cámara26 de febrero de 2020
- Hecho: Comité del Senado4 de marzo de 2020
- Hecho: Lo aprueba el Senado3 de junio de 202049–0
- Hecho: A gobernador(a)16 de junio de 2020
- Hecho: Firmado como ley29 de junio de 2020
Firmado como ley ¿Qué es el embudo (funnel)?
Qué contiene
La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.
This bill relates to the Iowa educational savings plan trust (529 plan) by permitting the use of funds for certain beneficiaries to attend out-of-state elementary or secondary schools. Currently, a taxpayer does not pay taxes on money withdrawn from a 529 plan to pay for qualified education expenses to an elementary or secondary school located in this state, among other tax incentives available to a participant in a 529 plan.2. The bill applies retroactively to tax years beginning on or after January 1, 2020.
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse1
Senate subcommittee
Named February 27, 2020. On March 4, 2020 it recommended passage.
- Sen. Tim Kraayenbrink REmail
- Sen. Chris Cournoyer R
- Sen. J. Smith
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Less revenue: up to $175,000 Compare con otros proyectos
Resumen con IA This bill allows people to use Iowa Educational Savings Plan Trust funds for tuition at out-of-state private schools for students with special needs without paying Iowa individual income tax. This change is projected to reduce net General Fund revenue by $175,000 in fiscal year 2021 through fiscal year 2024, and $145,000 in succeeding fiscal years. The fiscal impact on any local option income surtax for schools will be minor. (en inglés)2
Lea la nota fiscal (en inglés)
Description
House File 2340 allows funds withdrawn from Iowa Educational Savings Plan Trust accounts (Iowa Accounts) to be used to pay tuition for students requiring special education and attending out-of-state elementary or secondary schools. With the change, withdrawals made for this purpose will not be subject to Iowa individual income tax. The change is effective beginning tax year 2020.
Background
Current Iowa law allows tax-free withdrawals from Iowa Accounts for elementary and secondary tuition expenses, but the educational institution must be located in Iowa. Withdrawals that are made for any purpose other than those specified in the Iowa Code are to be added to the taxpayer’s income for tax purposes in the year of the withdrawal.
Assumptions
- Department of Management school enrollment statistics indicate that 17,041 special needs students are enrolled in Iowa school districts located on the Iowa border.
- From this population of 17,041 it is unknown how many attend or will attend elementary or secondary schools at out-of-state institutions. The Department of Revenue assumes a number equal to 5.0% (851 students) of the identified special needs population will attend out-of-state schools each year and utilize Iowa Account assets for tuition payments.
- Using an average Iowa Account per-family withdrawal statistic provided by the State Treasurer, the Department of Revenue estimates the average tuition withdrawal per student will be $2,920.
- All statistics cited above are assumed to remain constant.
- The Department of Revenue estimates that the average marginal tax rate for the impacted taxpayers will be 7.1% under the current tax system and 5.8% under the contingent income tax system.
- The contingent income tax system is assumed to become effective for tax year 2023.
- Tax year 2020 projected impacts will reduce income tax revenue for FY 2021.
- The fiscal impact on any local option income surtax for schools will be minor.
Fiscal Impact
The expansion of the Iowa Educational Savings Plan Trust individual income tax exemption is projected to reduce net General Fund revenue by $175,000 in FY 2021 through FY 2024, and $145,000 in succeeding fiscal years.
Sources
- Department of Revenue
- Department of Management
- State Treasurer
- Final Fiscal Note – 529 Plan, Out-of-State Private Schools, Special Needs · 9 de julio de 2020 · $175,000
- 529 Plan, Out-of-State Private Schools, Special Needs · 18 de febrero de 2020
Lo que cambia del Código de Iowa (Iowa Code)
Modifica§422.7
Cabildeo
5 a favor · 1 en contra · 11 indecisos · Quiénes →
Family tree
88th General Assembly