Bill Text: IA HSB674 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for reducing the state franchise tax rate, and including effective date and applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-18 - In Ways and Means [HSB674 Detail]
Download: Iowa-2013-HSB674-Introduced.html
House
Study
Bill
674
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
reducing
the
state
franchise
tax
rate,
and
including
1
effective
date
and
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
6137HC
(1)
85
mm/sc
H.F.
_____
Section
1.
Section
422.63,
Code
2014,
is
amended
to
read
as
1
follows:
2
422.63
Amount
of
tax.
3
The
franchise
tax
is
imposed
annually
in
an
amount
equal
4
to
five
one-half
of
one
percent
of
the
net
income
received
or
5
accrued
during
the
taxable
year.
If
the
net
income
of
the
6
financial
institution
is
derived
from
its
business
carried
on
7
entirely
within
the
state,
the
tax
shall
be
imposed
on
the
8
entire
net
income,
but
if
the
business
is
carried
on
partly
9
within
and
partly
without
the
state,
the
portion
of
net
income
10
reasonably
attributable
to
the
business
within
the
state
shall
11
be
specifically
allocated
or
equitably
apportioned
within
and
12
without
the
state
under
rules
of
the
director.
13
Sec.
2.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
14
2015.
15
Sec.
3.
APPLICABILITY.
This
Act
applies
to
tax
years
16
beginning
on
or
after
January
1,
2015.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
reduces
from
5
percent
to
0.50
percent
the
state
21
franchise
tax
rate
imposed
on
financial
institutions
for
the
22
privilege
of
doing
business
in
this
state.
23
The
bill
takes
effect
January
1,
2015,
and
applies
to
tax
24
years
beginning
on
or
after
that
date.
25
-1-
LSB
6137HC
(1)
85
mm/sc
1/
1
