Bills › 89th General Assembly
Relating to state financial matters, including state sales and use taxes, the natural resources and outdoor recreation trust fund, and the state individual income tax, and including effective date and applicability provisions
Where it is now
- Done: IntroducedMay 17, 2021
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2022 session adjourned on May 24, 2022, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
DIVISION I —— SALES AND USE TAXES. Division I of this bill relates to state sales and use taxes and to an amendment to the Iowa Constitution ratified on November 2, 2010, which created a natural resources and outdoor recreation trust fund (fund) and dedicated a portion of state revenues to the fund for the purposes of protecting and enhancing water quality and natural areas in the state including parks, trails, and fish and wildlife habitat, and conserving agricultural soils in the state (Article VII, section 10).
Read the full explanation
31.375 percent would generate. The state sales tax rate has not been increased since the effective date of the constitutional amendment, so no amounts have been credited to the fund.375 percent the state sales tax rate and the state use tax rate, and provides for the transfer of sales tax revenues to the fund.6863 percent of the revenues to ensure that SAVE receives approximately the same amount of use tax revenue as it did prior to the use tax rate increase provided in the division. The division takes effect July 1, 2022. DIVISION II —— INDIVIDUAL INCOME TAXES. Division II relates to the individual income tax by increasing the personal exemption credit and by making the credit refundable. Under current law, the personal exemption credit, which is a composite of five separate credits, is nonrefundable and may not exceed the computed tax. The division increases from $40 to $95 the personal exemption credit for an estate or trust, a single individual, or a married person filing a separate return; increases from $80 to $190 the personal exemption credit for a head of household, or a husband and wife filing a joint return; and increases from $40 to $70 the additional exemption credit for each dependent of the taxpayer. The division makes these credits, as well as the existing additional exemption credits of $20 for an individual who is at least years of age and $20 for a blind individual, refundable to the extent they exceed the tax remaining after subtracting all refundable and nonrefundable credits except the credits for withheld tax and estimated tax paid. However, for a nonresident or part-year resident, the amount of the credit in excess of the tax liability that shall be refunded is in the proportion that the taxpayer’s net income allocated to Iowa bears to the taxpayer’s total net income, under rules to be prescribed by the director of revenue. The division takes effect January 1, 2022, and applies to tax years beginning on or after that date.