Proyectos de ley › 89.ª Asamblea General
Excluding from the state corporate income tax certain income of public utilities furnishing water to the public, or furnishing sanitary sewage or storm water drainage disposal to the public, and including effective date and applicability provisions
Temas:TaxesIncome taxes
Dónde está ahora
- Hecho: Presentado8 de febrero de 2021
- Hecho: Subcomité9 de febrero de 2021
- Hecho: Comité de la Cámara17 de febrero de 2021
- Se saltó: Lo aprueba la CámaraSigue como HF 607
- Sigue: Comité del Senado
- Sigue: Lo aprueba el Senado
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Ahora es HF 607 → Sigue avanzando con el número nuevo. Ir a HF 607 ¿Qué es el embudo (funnel)?
Qué contiene
La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.
This bill excludes from the state corporate income tax the income of a public utility regulated by the utilities board derived from the operation of a system that furnishes water by piped distribution system to the public for compensation, or furnishes sanitary sewage or storm water drainage disposal by piped collection system to the public for compensation. This provision of the bill takes effect January 1, 2023, and applies to tax years beginning on or after that date. The bill also requires the customers of a public utility to receive the full benefits of a utility’s reduced state corporate income tax that result from the bill.
House subcommittee
Named February 9, 2021. On February 16, 2021 it recommended passage. Vote Total: 3-0.
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Nota fiscal
Resumen con IA Senate File 297 exempts certain income earned by a public utility from the state corporate income tax if that income comes from operating water or sewage systems. This change is projected to reduce Iowa General Fund revenue by $0.9 million in fiscal year 2023 and fiscal year 2024, and by $0.5 million in fiscal year 2025 and succeeding fiscal years. (en inglés)2
Lea la nota fiscal (en inglés)
Description
Senate File 297 exempts certain income earned by a public utility from the State corporate income tax. The exemption includes income earned from the operation of piped systems that distribute water for public consumption and systems that dispose of sanitary sewage or storm water. The change applies to tax years beginning on or after January 1, 2023.
Background
There is currently one Iowa public utility, Iowa American Water Company, that provides water and/or wastewater disposal services in Iowa. Iowa American Water Company is a subsidiary of American Water.
Assumptions
According to an August 2020 rate increase filing by the company, Iowa American Water Company expects 2022 operating revenue to equal $46.2 million and projects State corporate income tax expenses for that year to equal $0.5 million. This includes $4.4 million from the requested rate increase. The rate increase filing also lists an expected deferred State corporate income tax amount of $0.6 million. The amounts supplied by the company to the Iowa Utilities Board indicate that annual Iowa corporate income tax liability represents 1.0% of company revenue and deferred State corporate income tax represents a potential additional one-time cost equal to 1.0% of annual company revenue.
The tax exemption will begin with the start of the company’s tax year that begins in calendar year 2023. The start of the company’s tax year is not known but is assumed for this estimate to be the calendar year. The company is assumed to make quarterly corporate income tax payments equal to 25.0% of projected liability for a tax year.
Fiscal Impact
The proposed corporate income exemption for public water/wastewater income is projected to reduce Iowa General Fund revenue by $0.9 million in FY 2023 and FY 2024 and $0.5 million in FY 2025 and succeeding fiscal years.
Source
- Iowa Utilities Board Rate Filings
- Public Water Utility Corporate Tax Exemption · 24 de marzo de 2021
- Public Water Utility Corporate Tax Exemption · 23 de febrero de 2021
Lo que cambia del Código de Iowa (Iowa Code)
Cabildeo
2 a favor · 3 en contra · 11 indecisos · Quiénes →