Bill Text: IA SF2396 | 2023-2024 | 90th General Assembly | Amended
Bill Title: A bill for an act relating to state taxation by modifying lottery and alcoholic beverages provisions under the purview of the department of revenue, changing the taxation of lump sum distributions of retirement income, increasing estimated tax thresholds, making appropriations, and including effective date and retroactive applicability provisions. (Formerly SSB 3115.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2024-04-19 - Fiscal note. [SF2396 Detail]
Download: Iowa-2023-SF2396-Amended.html
Senate
File
2396
-
Reprinted
SENATE
FILE
2396
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3115)
(As
Amended
and
Passed
by
the
Senate
March
5,
2024
)
A
BILL
FOR
An
Act
relating
to
state
taxation
by
modifying
lottery
and
1
alcoholic
beverages
provisions
under
the
purview
of
the
2
department
of
revenue,
changing
the
taxation
of
lump
sum
3
distributions
of
retirement
income,
increasing
estimated
tax
4
thresholds,
making
appropriations,
and
including
effective
5
date
and
retroactive
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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2396
DIVISION
I
1
DISCLOSURE
OF
TAX
INFORMATION
2
Section
1.
Section
421.19,
subsection
2,
Code
2024,
is
3
amended
by
striking
the
subsection
and
inserting
in
lieu
4
thereof
the
following:
5
2.
The
department
may
notify
federal,
state,
or
local
6
law
enforcement
agencies,
and
may
disclose
state
returns,
7
state
return
information,
state
investigative
information
or
8
audit
information,
or
any
other
state
information,
to
such
law
9
enforcement
agencies,
if
the
department
has
information
that
10
indicates
any
of
the
following:
11
a.
A
person
intentionally
filed
a
false
claim,
affidavit,
12
return,
or
other
information
with
intent
to
evade
tax
or
obtain
13
a
refund,
credit,
or
other
benefit
from
the
department.
14
b.
A
person
failed
to
file
a
return
with
intent
to
evade
a
15
tax
or
filing
requirement.
16
c.
A
person
failed
to
pay
with
the
intent
to
evade
tax.
17
d.
A
person
committed
any
act
or
omission
that
is
a
criminal
18
offense
under
a
provision
of
this
title
administered
by
the
19
department.
20
Sec.
2.
Section
421.19,
subsection
3,
Code
2024,
is
amended
21
to
read
as
follows:
22
3.
Notwithstanding
sections
422.20
and
422.72
,
the
23
department
may
disclose
state
returns,
state
return
24
information,
state
investigative
or
audit
information,
or
any
25
other
state
information
as
provided
under
this
section
.
26
Sec.
3.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
27
deemed
of
immediate
importance,
takes
effect
upon
enactment.
28
DIVISION
II
29
ANNUAL
REPORTING
30
Sec.
4.
Section
421.60,
subsection
2,
paragraph
k,
Code
31
2024,
is
amended
by
striking
the
paragraph.
32
Sec.
5.
Section
422.75,
Code
2024,
is
amended
to
read
as
33
follows:
34
422.75
Statistics
——
publication.
35
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The
department
shall
prepare
and
publish
an
annual
report
1
which
shall
include
statistics
reasonably
available,
with
2
respect
to
the
operation
of
this
chapter
,
including
amounts
3
collected,
classification
of
taxpayers,
and
such
other
facts
4
as
are
deemed
pertinent
and
valuable.
The
annual
report
shall
5
also
include
the
reports
and
information
required
pursuant
to
6
section
421.60,
subsection
2
,
paragraph
“k”
.
7
DIVISION
III
8
PROPERTY
TAX
——
EXTENSIONS
9
Sec.
6.
Section
425.20,
subsection
3,
Code
2024,
is
amended
10
to
read
as
follows:
11
3.
In
case
of
sickness,
absence,
or
other
disability
of
12
the
claimant
or
if,
in
the
judgment
of
the
director
of
revenue
13
or
the
director
of
health
and
human
services
,
as
applicable,
14
good
cause
exists
and
the
claimant
requests
an
extension,
the
15
director
of
health
and
human
services
may
extend
the
time
for
16
filing
a
claim
for
reimbursement
and
the
director
of
revenue
17
may
extend
the
time
for
filing
a
claim
for
credit
.
However,
18
any
further
time
granted
shall
not
extend
beyond
December
31
19
of
the
year
following
the
year
in
which
the
claim
was
required
20
to
be
filed.
Claims
filed
as
a
result
of
this
subsection
shall
21
be
filed
with
the
director
of
health
and
human
services
or
the
22
director
of
revenue,
as
applicable,
who
shall
provide
for
the
23
reimbursement
of
the
claim
to
the
claimant.
24
DIVISION
IV
25
FARM
TENANCY
INCOME
TAX
EXCLUSION
26
Sec.
7.
Section
422.7,
subsection
14,
paragraph
a,
Code
27
2024,
is
amended
to
read
as
follows:
28
a.
Subtract,
to
the
extent
included,
net
income
received
29
by
an
eligible
individual
pursuant
to
a
farm
tenancy
agreement
30
covering
real
property
held
by
the
eligible
individual
for
31
ten
or
more
years,
if
the
eligible
individual
materially
32
participated
in
a
farming
business
for
ten
or
more
years
in
the
33
aggregate
.
34
Sec.
8.
Section
422.7,
subsection
14,
paragraph
f,
Code
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2024,
is
amended
by
adding
the
following
new
subparagraph:
1
NEW
SUBPARAGRAPH
.
(04)
“Held”
shall
be
determined
with
2
reference
to
the
holding
period
provisions
of
section
1223
of
3
the
Internal
Revenue
Code
and
the
federal
regulations
pursuant
4
thereto.
5
DIVISION
V
6
PASS-THROUGH
ENTITIES
7
Sec.
9.
Section
422.25C,
subsection
2,
Code
2024,
is
amended
8
to
read
as
follows:
9
2.
For
tax
years
beginning
on
or
after
January
1,
2020,
any
10
adjustments
to
a
partnership’s
or
pass-through
entity’s
items
11
of
income,
gain,
loss,
expense,
or
credit,
or
an
adjustment
to
12
such
items
allocated
to
a
partner
that
holds
an
interest
in
a
13
partnership
or
pass-through
entity
for
the
reviewed
year
by
14
the
department
as
a
result
of
a
state
partnership
audit,
shall
15
be
determined
at
the
partnership
level
or
pass-through
entity
16
level
in
the
same
manner
as
provided
by
section
6221(a)
of
the
17
Internal
Revenue
Code
and
the
regulations
thereunder
unless
a
18
different
treatment
is
specifically
provided
in
this
title
.
19
The
provisions
of
sections
6222,
6223,
and
6227
of
the
Internal
20
Revenue
Code
and
the
regulations
thereunder
shall
also
apply
to
21
a
partnership
or
pass-through
entity
and
its
direct
or
indirect
22
partners
in
the
same
manner
as
provided
in
such
sections
unless
23
a
different
treatment
is
specifically
provided
in
this
title
.
24
For
purposes
of
applying
such
sections,
due
account
shall
be
25
made
for
differences
in
federal
and
Iowa
terminology.
The
26
adjustment
provided
by
section
6221(a)
of
the
Internal
Revenue
27
Code
shall
be
determined
as
provided
in
such
section
but
shall
28
be
based
on
Iowa
taxable
income
or
other
tax
attributes
of
29
the
partnership
or
pass-through
entity
as
determined
pursuant
30
to
this
chapter
for
the
reviewed
year.
The
department
shall
31
issue
a
notice
of
adjustment
to
the
partnership
or
pass-through
32
entity.
Such
notice
shall
be
treated
as
an
assessment
for
the
33
purposes
of
section
422.25
,
and
the
notice
shall
be
appealable
,
34
except
as
provided
in
section
422.25,
by
the
partnership
or
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pass-through
entity
pursuant
to
sections
422.28
and
422.29
and
1
shall
be
issued
within
the
time
period
provided
by
section
2
422.25
.
Once
the
adjustments
to
partnership-related
or
3
pass-through
entity-related
items
or
reallocations
of
income,
4
gains,
losses,
expenses,
credits,
and
other
attributes
among
5
such
partners
for
the
reviewed
year
are
finally
determined,
6
the
partnership
or
pass-through
entity
and
any
direct
partners
7
or
indirect
partners
shall
then
be
subject
to
the
provisions
8
of
section
422.25,
subsection
1
,
paragraph
“e”
,
and
section
9
422.25A
in
the
same
manner
as
if
the
state
partnership
audit
10
were
a
federal
partnership
level
audit,
and
as
if
the
final
11
state
partnership
audit
adjustment
were
a
final
federal
12
partnership
adjustment.
The
penalty
exceptions
in
section
13
421.27,
subsection
2
,
paragraphs
“b”
and
“c”
,
shall
not
apply
14
to
a
state
partnership
audit.
15
Sec.
10.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
16
deemed
of
immediate
importance,
takes
effect
upon
enactment.
17
Sec.
11.
RETROACTIVE
APPLICABILITY.
This
division
of
this
18
Act
applies
retroactively
to
January
1,
2024.
19
DIVISION
VI
20
SALES
TAX
CHANGES
21
Sec.
12.
Section
423.36,
subsection
9,
paragraph
a,
Code
22
2024,
is
amended
to
read
as
follows:
23
a.
Except
as
provided
in
paragraph
“b”
,
purchasers,
users,
24
and
consumers
of
tangible
personal
property,
specified
digital
25
products,
or
enumerated
services
taxed
pursuant
to
subchapter
26
II
or
III
of
this
chapter
or
chapter
423B
may
be
authorized,
27
pursuant
to
rules
adopted
by
the
director,
to
remit
tax
owed
28
directly
to
the
department
instead
of
the
tax
being
collected
29
and
paid
by
the
seller.
To
qualify
for
a
direct
pay
tax
permit,
30
the
purchaser,
user,
or
consumer
must
accrue
a
tax
liability
of
31
more
than
four
eight
thousand
dollars
in
tax
under
subchapters
32
II
and
III
in
a
semimonthly
monthly
period
and
make
deposits
33
and
file
returns
pursuant
to
section
423.31
.
This
authority
34
shall
not
be
granted
or
exercised
except
upon
application
to
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the
director
and
then
only
after
issuance
by
the
director
of
a
1
direct
pay
tax
permit.
2
DIVISION
VII
3
MOTOR
FUEL
TAXES
4
Sec.
13.
Section
452A.3,
subsection
1,
paragraph
b,
5
unnumbered
paragraph
1,
Code
2024,
is
amended
to
read
as
6
follows:
7
On
and
after
July
1,
2026,
an
excise
tax
of
thirty
cents
is
8
imposed
on
each
gallon
of
ethanol
blended
gasoline
classified
9
as
E-15
or
higher.
Before
July
1,
2026,
the
rate
of
the
10
excise
tax
on
ethanol
blended
gasoline
classified
as
E-15
or
11
higher
shall
be
based
on
the
number
of
gallons
of
ethanol
12
blended
gasoline
classified
as
E-15
or
higher
that
are
13
distributed
in
this
state
as
expressed
as
a
percentage
of
the
14
number
of
gallons
of
motor
fuel
distributed
in
this
state,
15
which
is
referred
to
as
the
distribution
percentage.
For
16
purposes
of
this
paragraph,
only
ethanol
blended
gasoline
and
17
nonblended
gasoline,
not
including
aviation
gasoline,
shall
18
be
used
in
determining
the
percentage
basis
for
the
excise
19
tax.
The
department
shall
determine
the
percentage
basis
20
for
each
determination
period
beginning
January
1
and
ending
21
December
31
based
on
data
from
the
reports
filed
pursuant
to
22
section
452A.33
.
Before
June
1,
the
department
may
amend
the
23
distribution
percentage
due
to
a
mistake,
if
there
is
a
late
24
report
filed
by
a
retail
dealer
to
the
department
under
section
25
452A.33,
subsection
1,
or
if
the
distribution
percentage
is
26
not
accurate.
The
rate
for
the
excise
tax
shall
apply
for
the
27
period
beginning
July
1
and
ending
June
30
following
the
end
28
of
the
determination
period.
Before
July
1,
2026,
the
rate
29
of
the
excise
tax
on
each
gallon
of
ethanol
blended
gasoline
30
classified
as
E-15
or
higher
shall
be
as
follows:
31
Sec.
14.
Section
452A.3,
subsection
3,
paragraph
a,
32
subparagraph
(2),
unnumbered
paragraph
1,
Code
2024,
is
amended
33
to
read
as
follows:
34
Except
as
otherwise
provided
in
this
section
and
in
this
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subchapter
,
this
subparagraph
shall
apply
to
the
excise
tax
1
imposed
on
each
gallon
of
biodiesel
blended
fuel
classified
2
as
B-11
or
higher
used
for
any
purpose
for
the
privilege
of
3
operating
motor
vehicles
in
this
state.
On
and
after
July
1,
4
2026,
the
rate
of
the
excise
tax
on
each
gallon
of
biodiesel
5
blended
fuel
classified
as
B-11
or
higher
is
thirty-two
6
and
five-tenths
cents.
Before
July
1,
2026,
the
rate
of
7
the
excise
tax
shall
be
based
on
the
number
of
gallons
of
8
biodiesel
blended
fuel
classified
as
B-11
or
higher
that
are
9
distributed
in
this
state
as
expressed
as
a
percentage
of
10
the
number
of
gallons
of
special
fuel
for
diesel
engines
of
11
motor
vehicles
distributed
in
this
state,
which
is
referred
12
to
as
the
distribution
percentage.
The
department
shall
13
determine
the
percentage
basis
for
each
determination
period
14
beginning
January
1
and
ending
December
31
based
on
data
from
15
the
reports
filed
pursuant
to
section
452A.33
.
Before
June
16
1,
the
department
may
amend
the
distribution
percentage
due
17
to
a
mistake,
if
there
is
a
late
report
filed
by
a
retail
18
dealer
to
the
department
under
section
452A.33,
subsection
1,
19
or
the
distribution
percentage
is
not
accurate.
The
rate
of
20
the
excise
tax
shall
apply
for
the
period
beginning
July
1
and
21
ending
June
30
following
the
end
of
the
determination
period.
22
Before
July
1,
2026,
the
rate
of
the
excise
tax
on
each
gallon
23
of
biodiesel
blended
fuel
classified
as
B-11
or
higher
shall
24
be
as
follows:
25
Sec.
15.
Section
452A.15,
subsection
5,
Code
2024,
is
26
amended
to
read
as
follows:
27
5.
The
director
may
impose
a
civil
penalty
against
any
28
person
who
fails
to
timely
file
the
reports
or
keep
the
records
29
required
under
this
section
.
The
penalty
shall
be
one
hundred
30
dollars
for
the
first
violation
and
shall
increase
by
one
31
hundred
dollars
for
each
additional
violation
occurring
in
the
32
calendar
year
in
which
the
first
violation
occurred.
33
Sec.
16.
Section
452A.33,
subsection
2,
unnumbered
34
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
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On
or
before
April
1
the
department
shall
deliver
a
report
1
to
the
governor
and
the
legislative
services
agency.
Before
2
June
1,
the
department
may
amend
the
report
due
to
a
mistake,
3
if
there
is
a
late
report
by
a
retail
dealer
under
subsection
4
1,
or
if
the
report
is
not
accurate.
The
report
shall
compile
5
information
reported
by
retail
dealers
to
the
department
as
6
provided
in
this
section
and
shall
at
least
include
all
of
the
7
following:
8
Sec.
17.
Section
452A.41,
subsection
5,
paragraph
a,
Code
9
2024,
is
amended
to
read
as
follows:
10
a.
For
the
purpose
of
determining
the
amount
of
liability
11
for
the
electric
fuel
tax,
each
dealer
and
user
shall
file
with
12
the
department
not
later
than
July
31
for
the
period
beginning
13
January
1
and
ending
June
30,
and
not
later
than
January
30
14
31
for
the
period
beginning
July
1
and
ending
December
30
31
,
15
a
biannual
tax
return
certified
under
penalties
for
false
16
certification.
The
return
shall
show,
with
reference
to
each
17
location
at
which
fuel
is
delivered
or
placed
by
the
dealer
or
18
user
into
the
battery
or
other
energy
storage
device
of
any
19
electric
motor
vehicle
during
the
next
preceding
six
calendar
20
months,
information
as
required
by
the
department.
On
and
21
after
January
1,
2026,
the
department
may
require
by
rule
that
22
such
tax
returns
be
filed
quarterly.
23
Sec.
18.
Section
452A.44,
Code
2024,
is
amended
by
adding
24
the
following
new
subsection:
25
NEW
SUBSECTION
.
4.
If
electric
fuel
is
sold
or
dispensed
26
for
a
nontaxable
purpose,
the
purchaser
may
complete
and
27
provide
an
exemption
certificate
produced
by
the
department
to
28
the
license
holder.
29
DIVISION
VIII
30
VETERANS
TRUST
FUND
AND
LOTTERY
31
Sec.
19.
Section
99G.3,
Code
2024,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
17A.
“Setoff
program”
means
the
program
34
administered
pursuant
to
section
421.65.
35
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Sec.
20.
Section
99G.7,
subsection
1,
paragraph
e,
Code
1
2024,
is
amended
by
striking
the
paragraph.
2
Sec.
21.
Section
99G.39,
subsection
3,
Code
2024,
is
amended
3
to
read
as
follows:
4
3.
Two
million
five
hundred
thousand
dollars
in
lottery
5
revenues
shall
be
transferred
each
fiscal
year
to
the
veterans
6
trust
fund
established
pursuant
to
section
35A.13
prior
to
7
deposit
of
the
lottery
revenues
in
the
general
fund
pursuant
8
to
section
99G.40
.
However,
if
the
balance
of
the
veterans
9
trust
fund
is
fifty
million
dollars
or
more
on
both
July
1
of
10
the
current
fiscal
year
and
July
1
of
the
preceding
fiscal
11
year
,
the
moneys
shall
be
appropriated
to
the
department
for
12
distribution
to
county
directors
of
veteran
affairs,
with
fifty
13
percent
of
the
moneys
to
be
distributed
equally
to
each
county
14
and
fifty
percent
of
the
moneys
to
be
distributed
to
each
15
county
based
upon
the
population
of
veterans
in
the
county,
16
so
long
as
the
moneys
distributed
to
a
county
do
not
supplant
17
moneys
appropriated
by
that
county
for
the
county
director
of
18
veteran
affairs.
19
Sec.
22.
Section
99G.41,
subsections
1,
2,
3,
and
4,
Code
20
2024,
are
amended
to
read
as
follows:
21
1.
Any
claimant
agency
may
submit
to
the
department
a
22
list
of
the
names
of
all
persons
indebted
to
such
claimant
23
agency
or
to
persons
on
whose
behalf
the
claimant
agency
is
24
acting.
The
A
lottery
prize
payment
awarded
as
cash
or
cash
25
equivalents
is
subject
to
the
setoff
program.
Additionally,
a
26
debtor
and
the
full
amount
of
the
debt
shall
be
compiled
in
a
27
list,
and
collectible
from
any
lottery
winnings
prize
payment
28
awarded
as
cash
or
cash
equivalents
due
the
debtor
without
29
regard
to
limitations
on
the
amounts
that
may
be
collectible
in
30
increments
through
garnishment
or
other
proceedings.
Such
list
31
shall
constitute
a
valid
lien
upon
and
claim
of
lien
against
32
the
lottery
winnings
prize
payment
of
any
debtor
named
in
such
33
list.
The
list
shall
contain
the
names
of
the
debtors,
their
34
social
security
numbers
if
available,
and
any
other
information
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that
assists
the
department
in
identifying
the
debtors
named
in
1
the
list.
The
list
shall
be
treated
the
same
as
setoff
program
2
information
under
section
421.65,
subsection
2,
paragraph
“a”
.
3
2.
The
department
is
authorized
and
directed
to
withhold
4
any
winnings
paid
out
directly
by
the
department
subject
to
the
5
lien
created
by
this
section
,
and
send
notice
to
the
winner
or
6
send
notice
as
directed
by
the
setoff
program
.
However,
if
the
7
winner
appears
and
claims
winnings
in
person,
the
department
8
shall
notify
the
winner
at
that
time
by
hand
delivery
of
such
9
action.
The
department
shall
pay
the
funds
over
to
the
agency
10
administering
the
offset
to
the
setoff
program.
11
3.
Notwithstanding
the
provisions
of
section
99G.34
which
12
prohibit
disclosure
by
the
department
of
certain
portions
13
of
the
contents
of
prize
winner
records
or
information,
14
and
notwithstanding
any
other
confidentiality
statute,
15
the
department
may
provide
to
a
claimant
agency
the
setoff
16
program
and
public
agency,
as
defined
in
section
421.65,
all
17
information
necessary
to
accomplish
and
effectuate
the
intent
18
of
this
section
.
19
4.
The
information
obtained
by
a
claimant
agency
from
the
20
department
in
accordance
with
this
section
shall
retain
its
21
confidentiality
and
shall
only
be
used
by
a
claimant
agency
22
in
the
pursuit
of
its
debt
collection
duties
and
practices.
23
Any
employee
or
prior
employee
of
any
claimant
agency
who
24
unlawfully
discloses
any
such
information
for
any
other
25
purpose,
except
as
otherwise
specifically
authorized
by
law,
26
shall
be
subject
to
the
same
penalties
specified
by
law
for
27
unauthorized
disclosure
of
confidential
information
by
an
agent
28
or
employee
of
the
department
under
this
chapter
.
29
DIVISION
IX
30
ALCOHOLIC
BEVERAGES
31
Sec.
23.
Section
123.3,
Code
2024,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
36A.
“Operating
still”
means
a
still
that
34
is
registered
with
the
federal
alcohol
and
tobacco
tax
and
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trade
bureau
of
the
United
States
department
of
the
treasury
1
and
is
actively
used
to
manufacture
spirits.
2
Sec.
24.
Section
123.30,
subsection
4,
Code
2024,
is
amended
3
to
read
as
follows:
4
4.
Notwithstanding
any
provision
of
this
chapter
to
the
5
contrary,
a
person
holding
a
retail
alcohol
license
to
sell
6
alcoholic
beverages
for
consumption
on
the
licensed
premises
7
may
permit
a
customer
to
remove
one
unsealed
bottle
of
wine
8
for
consumption
off
the
premises
if
the
customer
has
purchased
9
and
consumed
a
portion
of
the
bottle
of
wine
on
the
licensed
10
premises.
The
licensee
or
the
licensee’s
agent
shall
securely
11
reseal
such
bottle
in
a
bag
designed
so
that
it
is
visibly
12
apparent
that
the
resealed
bottle
of
wine
has
not
been
tampered
13
with
and
provide
a
dated
receipt
for
the
resealed
bottle
of
14
wine
to
the
customer.
A
wine
bottle
resealed
pursuant
to
the
15
requirements
of
this
subsection
is
subject
to
the
requirements
16
of
sections
321.284
and
321.284A
.
A
person
holding
a
retail
17
alcohol
license
to
sell
alcoholic
beverages
for
consumption
on
18
the
licensed
premises
may
permit
a
customer
to
carry
an
open
19
container
of
wine
from
the
person’s
licensed
premises
into
20
another
immediately
adjacent
licensed
premises
that
is
covered
21
by
a
license
or
permit
that
authorizes
the
consumption
of
wine,
22
a
temporarily
closed
public
right-of-way,
or
a
private
place.
23
Sec.
25.
Section
123.30,
Code
2024,
is
amended
by
adding
the
24
following
new
subsection:
25
NEW
SUBSECTION
.
5.
A
person
holding
a
retail
alcohol
26
license
to
sell
alcoholic
beverages
for
consumption
on
the
27
licensed
premises
may
permit
a
customer
to
carry
an
open
28
container
of
wine
or
beer
from
the
person’s
licensed
premises
29
to
one
of
the
following
immediately
adjacent
locations:
30
a.
Another
licensed
premises
that
authorizes
the
consumption
31
of
beer
or
wine.
32
b.
A
temporarily
closed
public
right-of-way.
33
c.
A
private
place.
34
Sec.
26.
Section
123.43A,
subsection
6,
Code
2024,
is
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amended
to
read
as
follows:
1
6.
Notwithstanding
any
provision
of
this
chapter
to
the
2
contrary
or
the
fact
that
a
person
is
the
holder
of
a
class
3
“A”
native
distilled
spirits
license,
a
native
distillery
may
4
be
granted
a
class
“C”
retail
alcohol
license
as
defined
in
5
section
123.30
for
the
same
premises
licensed
under
a
class
“A”
6
native
distilled
spirits
license
where
the
manufacturing
of
7
native
distilled
spirits
occurs
.
A
native
distillery
may
be
8
granted
not
more
than
two
class
“C”
retail
alcohol
licenses.
9
A
manufacturer
of
native
distilled
spirits
distillery
may
be
10
issued
a
class
“C”
retail
alcohol
license
regardless
of
whether
11
the
manufacturer
is
also
a
manufacturer
of
beer
pursuant
to
a
12
class
“A”
beer
permit
or
a
manufacturer
of
native
wine
pursuant
13
to
a
class
“A”
wine
permit.
14
Sec.
27.
Section
123.45,
subsection
3,
Code
2024,
is
amended
15
to
read
as
follows:
16
3.
A
person
engaged
in
the
wholesaling
of
beer
or
wine
17
may
sell
only
disposable
glassware,
which
is
constructed
of
18
paper,
paper
laminated,
or
plastic
materials
and
designed
19
primarily
for
personal
consumption
on
a
one-time
usage
20
basis,
to
retailers
for
use
within
the
premises
of
licensed
21
establishments,
for
an
amount
which
is
greater
than
or
equal
22
to
an
amount
which
represents
the
greater
of
either
the
amount
23
paid
for
the
disposable
glassware
by
the
supplier
or
the
amount
24
paid
for
the
disposable
glassware
by
the
wholesaler.
Also,
25
notwithstanding
any
other
provision
of
this
chapter
or
the
26
fact
that
a
person
is
the
holder
of
a
class
“A”
beer
permit,
27
a
native
brewery
may
be
granted
not
more
than
two
a
class
“C”
28
retail
alcohol
licenses
license
or
not
more
than
two
a
special
29
class
“C”
retail
alcohol
licenses
license
,
both
as
defined
in
30
section
123.30
,
for
the
same
premises
licensed
under
a
class
31
“A”
beer
permit
where
the
manufacturing
of
beer
occurs.
A
32
native
brewery
may
be
granted
not
more
than
two
class
“C”
33
retail
alcohol
licenses
or
two
special
class
“C”
retail
alcohol
34
licenses.
A
native
brewery
may
be
issued
a
class
“C”
retail
35
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alcohol
license
or
a
special
class
“C”
retail
alcohol
license,
1
regardless
of
whether
that
person
is
also
a
manufacturer
2
of
native
distilled
spirits
pursuant
to
a
class
“A”
native
3
distilled
spirits
license
or
a
manufacturer
of
native
wine
4
pursuant
to
a
class
“A”
wine
permit.
5
Sec.
28.
Section
123.176,
subsection
5,
Code
2024,
is
6
amended
to
read
as
follows:
7
5.
Notwithstanding
any
other
provision
of
this
chapter
8
or
the
fact
that
a
person
is
the
holder
of
a
class
“A”
wine
9
permit
,
a
person
engaged
in
the
business
of
manufacturing
10
native
wine
may
be
granted
a
class
“C”
retail
alcohol
license
11
or
special
class
“C”
retail
native
wine
license
as
defined
in
12
section
123.30
,
for
the
same
premises
licensed
under
a
class
13
“A”
wine
permit
where
the
manufacturing
of
native
wine
occurs
.
14
A
manufacturer
of
native
wine
may
be
granted
not
more
than
15
two
class
“C”
retail
alcohol
licenses
or
special
class
“C”
16
retail
native
wine
licenses.
A
manufacturer
of
native
wine
17
may
be
issued
a
class
“C”
retail
alcohol
license
or
special
18
class
“C”
retail
native
wine
license
regardless
of
whether
the
19
manufacturer
is
also
a
manufacturer
of
beer
pursuant
to
a
class
20
“A”
beer
permit
or
a
manufacturer
of
native
distilled
spirits
21
pursuant
to
a
class
“A”
native
distilled
spirits
license.
22
DIVISION
X
23
INHERITANCE
TAX
——
FUTURE
CODE
CHANGES
DUE
TO
REPEAL
24
Sec.
29.
Section
12D.9,
subsection
3,
Code
2024,
is
amended
25
to
read
as
follows:
26
3.
State
For
a
death
occurring
before
January
1,
2025,
state
27
inheritance
tax
treatment
of
interests
in
Iowa
educational
28
savings
plans
shall
be
as
provided
in
section
450.4,
subsection
29
8
.
This
subsection
shall
apply
to
all
Iowa
educational
savings
30
plans
existing
on
or
after
July
1,
1998.
31
Sec.
30.
Section
12I.8,
subsection
3,
Code
2024,
is
amended
32
to
read
as
follows:
33
3.
State
For
a
death
occurring
before
January
1,
2025,
state
34
inheritance
tax
treatment
of
interests
in
Iowa
ABLE
savings
35
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plans
shall
be
as
provided
in
section
450.4,
subsection
9
.
1
Sec.
31.
Section
12I.10,
subsection
3,
Code
2024,
is
amended
2
to
read
as
follows:
3
3.
State
For
a
death
occurring
before
January
1,
2025,
state
4
inheritance
tax
treatment
of
interests
in
the
qualified
ABLE
5
program
with
which
the
state
has
contracted
pursuant
to
this
6
section
shall
be
as
provided
in
section
450.4,
subsection
9
.
7
Sec.
32.
Section
16.177,
subsection
8,
Code
2024,
is
amended
8
to
read
as
follows:
9
8.
Bonds
issued
under
this
section
are
declared
to
be
issued
10
for
an
essential
public
and
governmental
purpose
and
all
bonds
11
issued
under
this
section
shall
be
exempt
from
taxation
by
the
12
state
of
Iowa
and
the
interest
on
the
bonds
shall
be
exempt
13
from
the
state
income
tax
and
the
any
state
inheritance
tax.
14
Sec.
33.
Section
321.47,
subsection
2,
paragraph
a,
Code
15
2024,
is
amended
to
read
as
follows:
16
a.
The
persons
entitled
under
the
laws
of
descent
and
17
distribution
to
the
possession
and
ownership
of
a
vehicle
owned
18
in
whole
or
in
part
by
a
decedent
who
died
intestate,
upon
19
filing
an
affidavit
stating
the
name
and
date
of
death
of
the
20
decedent,
the
right
to
possession
and
ownership
of
the
persons
21
filing
the
affidavit,
and
that
there
has
been
no
administration
22
of
the
decedent’s
estate,
which
instrument
must
also
contain
23
an
agreement
by
the
affiant
to
indemnify
creditors
of
the
24
decedent
who
would
be
entitled
to
levy
execution
upon
the
motor
25
vehicle
to
the
extent
of
the
value
of
the
motor
vehicle,
shall,
26
upon
complying
with
the
other
title
transfer
requirements
of
27
this
chapter
,
be
issued
a
registration
card
for
the
decedent’s
28
interest
in
the
vehicle
and
a
certificate
of
title
to
the
29
vehicle.
If
a
decedent
died
testate,
and
either
the
will
is
30
not
probated
or
is
admitted
to
probate
without
administration,
31
the
persons
entitled
to
the
possession
and
ownership
of
32
a
vehicle
owned
in
whole
or
in
part
by
the
decedent
may
33
file
an
affidavit
and,
upon
complying
with
the
other
title
34
transfer
requirements
of
this
chapter
,
shall
be
issued
a
35
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2396
registration
card
for
the
decedent’s
interest
in
the
vehicle
1
and
a
certificate
of
title
to
the
vehicle.
The
affidavit
2
must
contain
the
same
information
and
indemnity
agreement
3
as
is
required
in
cases
of
intestacy
under
this
subsection
.
4
Chapter
450
is
not
For
a
death
occurring
before
January
1,
5
2025,
a
requirement
of
chapter
450
shall
not
be
considered
6
satisfied
by
the
filing
of
the
affidavit
provided
for
in
this
7
subsection
.
If,
from
the
records
in
the
office
of
the
county
8
treasurer,
there
appear
to
be
any
liens
on
the
vehicle,
the
9
certificate
of
title
must
contain
a
statement
of
the
liens
10
unless
the
application
is
accompanied
by
proper
evidence
of
11
the
satisfaction
or
extinction
of
such
liens.
Evidence
of
12
extinction
includes
but
is
not
limited
to
an
affidavit
of
the
13
applicant
stating
that
a
security
interest
was
foreclosed
as
14
provided
in
chapter
554,
article
9,
part
6
.
The
department
15
shall
waive
the
certificate
of
title
fee
and
surcharge
required
16
under
sections
321.20
,
321.20A
,
321.23
,
321.46
,
321.52
,
and
17
321.52A
if
the
person
entitled
to
possession
and
ownership
of
18
a
vehicle,
as
provided
in
this
subsection
,
is
the
surviving
19
spouse
of
a
decedent.
20
Sec.
34.
Section
331.602,
subsection
23,
Code
2024,
is
21
amended
to
read
as
follows:
22
23.
Forward
For
deaths
occurring
before
January
1,
2025,
23
forward
to
the
director
of
revenue
a
copy
of
any
deed,
bill
of
24
sale,
or
other
transfer
which
shows
that
it
is
made
or
intended
25
to
take
effect
at
or
after
the
death
of
the
person
executing
26
the
instrument
as
provided
in
section
450.81
.
27
Sec.
35.
Section
331.756,
subsection
57,
Code
2024,
is
28
amended
to
read
as
follows:
29
57.
Represent
For
a
death
occurring
before
January
1,
2025,
30
represent
the
state
in
litigation
relating
to
the
inheritance
31
tax
if
requested
by
the
department
of
revenue
as
provided
in
32
section
450.1
.
33
Sec.
36.
Section
421.27,
subsection
1,
paragraph
d,
34
subparagraph
(13),
Code
2024,
is
amended
to
read
as
follows:
35
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2396
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90
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S.F.
2396
(13)
That
For
a
death
occurring
before
January
1,
2025,
1
that
an
Iowa
inheritance
tax
return
is
filed
for
an
estate
2
within
the
later
of
nine
months
from
the
date
of
death
or
sixty
3
days
from
the
filing
of
a
disclaimer
by
the
beneficiary
of
the
4
estate
refusing
to
take
the
property
or
right
or
interest
in
5
the
property.
6
Sec.
37.
Section
421.60,
subsection
2,
paragraph
c,
7
subparagraph
(1),
Code
2024,
is
amended
to
read
as
follows:
8
(1)
If
the
notice
of
assessment
or
denial
of
a
claim
for
9
refund
relates
to
a
tax
return
filed
pursuant
to
section
10
422.14
,
or
pursuant
to
chapter
450
for
a
death
occurring
before
11
January
1,
2025,
by
the
taxpayer
which
designates
an
individual
12
as
an
authorized
representative
of
the
taxpayer
with
respect
to
13
that
return,
or
if
a
power
of
attorney
has
been
filed
with
the
14
department
by
the
taxpayer
which
designates
an
individual
as
15
an
authorized
representative
of
the
taxpayer
with
respect
to
16
any
tax
that
is
included
in
the
notice
of
assessment
or
denial
17
of
a
claim
for
refund,
a
copy
of
the
notice
together
with
any
18
additional
information
required
to
be
sent
to
the
taxpayer
19
shall
be
sent
to
the
authorized
representative
as
well.
20
Sec.
38.
Section
422.27,
subsection
1,
Code
2024,
is
amended
21
to
read
as
follows:
22
1.
A
final
account
of
a
personal
representative
,
as
defined
23
in
section
450.1
,
shall
not
be
allowed
by
any
court
unless
the
24
account
shows,
and
the
judge
of
the
court
finds,
that
all
taxes
25
imposed
by
this
subchapter
upon
the
personal
representative,
26
which
have
become
payable,
have
been
paid,
and
that
all
taxes
27
which
may
become
due
are
secured
by
bond
or
deposit,
or
are
28
otherwise
secured.
The
certificate
of
acquittances
of
the
29
department
of
revenue
is
conclusive
as
to
the
payment
of
the
30
tax
to
the
extent
of
the
acquittance.
This
subsection
does
31
not
apply
if
all
property
in
the
estate
of
a
decedent
is
32
held
in
joint
tenancy
with
right
of
survivorship
by
husband
33
and
wife
alone.
For
purposes
of
this
subsection,
“personal
34
representative”
means
an
administrator,
executor,
or
trustee
as
35
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2396
each
is
defined
in
section
633.3.
1
Sec.
39.
Section
455G.6,
subsection
14,
Code
2024,
is
2
amended
to
read
as
follows:
3
14.
Bonds
issued
under
the
provisions
of
this
section
are
4
declared
to
be
issued
for
an
essential
public
and
governmental
5
purpose
and
all
bonds
issued
under
this
subchapter
shall
be
6
exempt
from
taxation
by
the
state
of
Iowa
and
the
interest
on
7
the
bonds
shall
be
exempt
from
the
state
income
tax
and
the
any
8
state
inheritance
tax.
9
Sec.
40.
Section
496C.14,
subsection
6,
paragraph
h,
Code
10
2024,
is
amended
to
read
as
follows:
11
h.
Notwithstanding
the
provisions
of
this
section
,
12
payment
of
any
part
of
the
purchase
price
for
shares
of
a
13
deceased
shareholder
shall
not
be
required
until
the
executor
14
or
administrator
of
the
deceased
shareholder
provides
15
any
indemnity,
release,
or
other
document
from
any
taxing
16
authority,
which
is
reasonably
necessary
to
protect
the
17
corporation
against
liability
for
any
estate
,
inheritance,
and
18
death
taxes
tax,
or
any
inheritance
tax
for
a
death
occurring
19
before
January
1,
2025
.
20
Sec.
41.
Section
524.805,
subsection
8,
Code
2024,
is
21
amended
to
read
as
follows:
22
8.
A
state
bank
may
receive
deposits
from
one
or
more
23
persons
with
the
provision
that
upon
the
death
of
the
24
depositors
the
deposit
account
shall
be
the
property
of
the
25
person
or
persons
designated
by
the
deceased
depositors
as
26
shown
on
the
deposit
account
records
of
the
state
bank.
After
27
payment
by
the
state
bank,
the
proceeds
shall
remain
subject
28
to
the
any
debts
of
the
decedent
and
the
any
payment
of
Iowa
29
inheritance
tax
,
if
any
for
a
death
occurring
prior
to
January
30
1,
2025
.
A
state
bank
paying
the
person
or
persons
designated
31
shall
not
be
liable
as
a
result
of
that
action
for
any
debts
32
of
the
decedent
or
for
any
estate,
inheritance,
or
succession
33
taxes
which
may
be
due
this
state.
34
Sec.
42.
Section
541A.2,
subsection
6,
unnumbered
paragraph
35
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S.F.
2396
1,
Code
2024,
is
amended
to
read
as
follows:
1
An
individual
development
account
closed
in
accordance
2
with
this
subsection
is
not
subject
to
the
limitations
and
3
benefits
provided
by
this
chapter
but
is
subject
to
state
tax
4
in
accordance
with
the
provisions
of
section
422.7,
subsection
5
17
,
and
in
accordance
with
the
provisions
of
section
450.4,
6
subsection
6
,
for
a
death
occurring
before
January
1,
2025
.
An
7
individual
development
account
may
be
closed
for
any
of
the
8
following
reasons:
9
Sec.
43.
Section
602.8102,
subsection
63,
Code
2024,
is
10
amended
to
read
as
follows:
11
63.
Carry
out
duties
relating
to
the
inheritance
tax
as
12
provided
in
chapter
450
for
deaths
occurring
before
January
1,
13
2025
.
14
Sec.
44.
Section
633.21,
Code
2024,
is
amended
to
read
as
15
follows:
16
633.21
Appraisers’
fees
and
referees’
fees
fixed
by
rule.
17
The
district
judges
of
each
judicial
district
shall
by
rule
18
fix
the
fees
of
probate
referees,
and
also
provide,
insofar
as
19
practicable,
a
uniform
schedule
of
compensation
for
inheritance
20
tax
appraisers,
other
appraisers,
brokers,
and
agents
employed
21
at
estate
expense.
22
Sec.
45.
Section
633.31,
subsection
2,
paragraph
a,
Code
23
2024,
is
amended
to
read
as
follows:
24
a.
For
services
performed
in
short
form
probates
25
pursuant
to
sections
450.22
and
450.44
for
deaths
occurring
26
before
January
1,
2025
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
15.00
27
Sec.
46.
Section
633.356,
subsection
1,
unnumbered
28
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
29
When
the
gross
value
of
the
decedent’s
personal
property
30
that
would
otherwise
be
distributed
by
will
or
intestate
31
succession
is
or
has
been,
at
any
time
since
the
decedent’s
32
death,
fifty
thousand
dollars
or
less
and
there
is
no
real
33
property
,
or
for
deaths
occurring
before
January
1,
2025,
the
34
real
property
passes
to
persons
exempt
from
inheritance
tax
35
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SF
2396
(3)
90
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2396
as
joint
tenants
with
full
rights
of
survivorship
pursuant
to
1
chapter
450
,
and
if
forty
days
have
elapsed
since
the
death
of
2
the
decedent,
a
successor
as
defined
in
subsection
2
may,
by
3
furnishing
an
affidavit
prepared
pursuant
to
subsection
3
or
4
8
,
and
without
procuring
letters
of
appointment,
do
any
of
the
5
following
with
respect
to
one
or
more
items
of
such
personal
6
property:
7
Sec.
47.
Section
633.356,
subsection
3,
paragraph
a,
8
subparagraph
(3),
Code
2024,
is
amended
to
read
as
follows:
9
(3)
That
the
gross
value
of
the
decedent’s
personal
property
10
that
would
otherwise
be
distributed
by
will
or
intestate
11
succession
is,
or
has
been
at
any
time
since
the
decedent’s
12
death,
fifty
thousand
dollars
or
less
and
there
is
no
real
13
property
,
or
for
deaths
occurring
before
January
1,
2025,
the
14
real
property
passes
to
persons
exempt
from
inheritance
tax
15
as
joint
tenants
with
full
rights
of
survivorship
pursuant
to
16
chapter
450
.
17
Sec.
48.
Section
633.356,
subsection
3,
paragraph
a,
18
subparagraph
(10),
Code
2024,
is
amended
to
read
as
follows:
19
(10)
That
no
inheritance
or
other
taxes
are
owed
to
the
20
department
of
revenue
for
a
death
occurring
prior
to
January
1,
21
2025
,
or
if
taxes
are
owed,
that
the
taxes
will
be
paid
to
the
22
extent
of
funds
received
pursuant
to
the
affidavit.
23
Sec.
49.
Section
633.356,
subsection
9,
Code
2024,
is
24
amended
to
read
as
follows:
25
9.
Upon
receipt
of
an
affidavit
under
subsection
3
and
26
reasonable
proof
under
subsection
5
of
the
identity
of
each
27
successor
seeking
distribution
by
virtue
of
the
affidavit,
28
the
holder
of
the
property
shall
disclose
to
the
affiant
29
whether
the
value
of
the
property
held
by
the
holder
is,
or
has
30
been
at
any
time
since
the
decedent’s
death,
fifty
thousand
31
dollars
or
less.
An
affidavit
furnished
for
the
purpose
of
32
determining
whether
the
value
of
the
property
is,
or
has
33
been
at
any
time
since
the
decedent’s
death,
fifty
thousand
34
dollars
or
less
need
not
contain
the
language
required
under
35
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SF
2396
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90
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23
S.F.
2396
subsection
3
,
paragraph
“a”
,
subparagraph
(3),
but
shall
state
1
that
the
affiant
reasonably
believes
that
the
gross
value
2
of
the
decedent’s
personal
property
that
would
otherwise
be
3
distributed
by
will
or
intestate
succession
is,
or
has
been
at
4
any
time
since
the
decedent’s
death,
fifty
thousand
dollars
5
or
less
and
there
is
no
real
property
or
for
deaths
occurring
6
before
January
1,
2025,
the
real
property
passes
to
persons
7
exempt
from
inheritance
tax
as
joint
tenants
with
full
rights
8
of
survivorship
pursuant
to
chapter
450
.
9
Sec.
50.
Section
633.361,
subsection
12,
Code
2024,
is
10
amended
to
read
as
follows:
11
12.
A
listing
of
all
other
items,
with
estimated
values,
12
which
are
subject
to
Iowa
inheritance
tax
for
deaths
occurring
13
before
January
1,
2025,
or
federal
estate
tax.
14
Sec.
51.
Section
633.365,
Code
2024,
is
amended
to
read
as
15
follows:
16
633.365
Appraisement.
17
Property
belonging
to
the
estate
need
not
be
appraised
18
unless
required
for
inheritance
tax
purposes
for
deaths
19
occurring
before
January
1,
2025
,
under
the
provisions
of
this
20
probate
code,
or
by
order
of
court.
21
Sec.
52.
Section
633.399,
Code
2024,
is
amended
to
read
as
22
follows:
23
633.399
Report
for
approval.
24
After
making
any
such
sale,
mortgage,
exchange
or
lease
25
of
real
property,
the
personal
representative
shall
make
26
a
verified
report
thereof
to
the
court.
The
court
shall
27
examine
said
report,
and
if
satisfied
that
the
sale,
mortgage,
28
exchange,
or
lease
has
been
at
a
price
and
upon
terms
29
advantageous
to
the
estate,
and,
in
all
respects,
made
in
30
conformity
with
law,
and
that
it
ought
to
be
confirmed,
shall
31
confirm
the
same
and
order
the
personal
representative
to
32
deliver
a
deed,
mortgage,
lease
or
other
proper
instruments
33
to
the
persons
entitled
thereto;
provided,
however,
that
in
34
the
event
said
real
property
has
been
sold
at
private
sale
35
-19-
SF
2396
(3)
90
jm/jh/mb
19/
23
S.F.
2396
without
an
appraisal
for
inheritance
tax
purposes
for
a
death
1
occurring
before
January
1,
2025,
or
for
purpose
of
such
sale,
2
or,
if
it
has
been
so
appraised
and
has
been
sold
at
private
3
sale
for
less
than
the
appraised
value
thereof,
then,
upon
the
4
filing
of
such
report,
the
court
may
enter
an
order
fixing
a
5
time
and
place
for
hearing
thereon
and
prescribe
a
notice
of
6
such
hearing
to
be
served
upon
all
interested
persons,
any
one
7
of
whom,
prior
to
the
time
fixed
for
such
hearing,
may
file
8
written
objections
to
the
entry
of
an
order
approving
said
9
sale.
If
not
satisfied
that
the
sale,
mortgage,
exchange,
or
10
lease
has
been
made
in
conformity
with
law
and
that
it
is
to
the
11
best
interests
of
the
estate,
the
court
may
reject
the
sale,
12
mortgage,
exchange,
or
lease,
and
enter
such
orders
as
the
13
court
may
deem
advisable.
14
Sec.
53.
Section
633.477,
subsection
10,
Code
2024,
is
15
amended
to
read
as
follows:
16
10.
A
statement
as
to
whether
or
not
all
statutory
17
requirements
pertaining
to
taxes
have
been
complied
with
18
including
whether
the
federal
estate
tax
due
has
been
paid,
19
whether
a
lien
continues
to
exist
for
any
federal
estate
tax,
20
and
whether
inheritance
tax
was
paid
or
a
return
was
filed
in
21
this
state
for
a
death
occurring
before
January
1,
2025
.
22
Sec.
54.
Section
633.479,
subsection
2,
paragraph
a,
23
subparagraph
(5),
Code
2024,
is
amended
to
read
as
follows:
24
(5)
Compliance
with
sections
section
422.27
,
and
section
25
450.58
for
deaths
occurring
before
January
1,
2025,
have
been
26
fulfilled.
27
Sec.
55.
Section
633.481,
Code
2024,
is
amended
to
read
as
28
follows:
29
633.481
Certificate
to
county
recorder
for
tax
purposes
30
without
administration.
31
When
an
inventory
or
report
is
filed
under
section
450.22
for
32
deaths
occurring
before
January
1,
2025
,
without
administration
33
of
the
estate
of
the
decedent,
the
heir
or
heir’s
attorney
34
shall
prepare
and
deliver
to
the
county
recorder
of
the
county
35
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in
which
the
real
estate
is
situated
a
certificate
pertaining
1
to
each
parcel
of
real
estate
described
in
the
inventory
or
2
report.
Any
fees
for
certificates
or
recording
fees
required
3
by
this
section
or
section
633.480
shall
be
assessed
as
costs
4
of
administration.
The
fees
for
recording
and
indexing
the
5
instrument
shall
be
as
provided
in
section
331.604
.
The
county
6
recorder
shall
deliver
the
certificates
to
the
county
auditor
7
as
provided
in
section
558.58
.
8
Sec.
56.
Section
635.7,
subsection
1,
Code
2024,
is
amended
9
to
read
as
follows:
10
1.
The
personal
representative
is
required
to
file
the
11
report
and
inventory
for
which
provision
is
made
in
section
12
633.361
,
including
all
probate
and
nonprobate
assets.
This
13
chapter
does
not
exempt
the
personal
representative
from
14
complying
with
the
requirements
of
section
422.27
,
450.22
,
15
450.58
,
633.480
,
or
633.481
,
and
the
administration
of
an
16
estate
whether
converted
to
or
from
a
small
estate
shall
be
17
considered
one
proceeding
pursuant
to
section
633.330
.
For
18
a
death
occurring
before
January
1,
2025,
this
chapter
does
19
not
exempt
the
personal
representative
from
complying
with
the
20
requirements
of
section
450.22
or
450.58.
21
Sec.
57.
Section
635.8,
subsection
1,
paragraph
e,
Code
22
2024,
is
amended
to
read
as
follows:
23
e.
A
statement
that
all
statutory
requirements
pertaining
to
24
taxes
have
been
complied
with,
including
whether
federal
estate
25
tax
due
has
been
paid,
whether
a
lien
continues
to
exist
for
26
any
federal
estate
tax,
and
whether
inheritance
tax
was
paid
27
or
a
tax
return
was
filed
in
this
state
for
a
death
occurring
28
before
January
1,
2025
.
29
Sec.
58.
Section
654.16,
subsection
2,
Code
2024,
is
amended
30
to
read
as
follows:
31
2.
If
a
homestead
is
designated,
the
court
shall
determine
32
the
fair
market
value
of
the
designated
homestead
before
33
the
sheriff’s
sale.
The
court
may
consult
with
the
county
34
appraisers
appointed
pursuant
to
section
450.24
for
deaths
35
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occurring
before
January
1,
2025
,
or
with
one
or
more
1
independent
appraisers,
to
determine
the
fair
market
value
of
2
the
designated
homestead.
3
Sec.
59.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
4
effect
January
1,
2025.
5
Sec.
60.
APPLICABILITY.
This
division
of
this
Act
applies
6
to
the
estates
of
decedents
dying
on
or
after
January
1,
2025.
7
DIVISION
XI
8
LUMP
SUM
DISTRIBUTION
OF
RETIREMENT
INCOME
9
Sec.
61.
Section
422.5,
subsection
8,
Code
2024,
is
amended
10
to
read
as
follows:
11
8.
a.
In
addition
to
the
other
taxes
imposed
by
this
12
section
,
a
tax
is
imposed
,
except
under
paragraph
“b”
,
on
the
13
amount
of
a
lump
sum
distribution
for
which
the
taxpayer
has
14
elected
under
section
402(e)
of
the
Internal
Revenue
Code
to
15
be
separately
taxed
for
federal
income
tax
purposes
for
the
16
tax
year.
The
rate
of
tax
is
equal
to
twenty-five
percent
of
17
the
separate
federal
tax
imposed
on
the
amount
of
the
lump
18
sum
distribution.
A
nonresident
is
liable
for
this
tax
only
19
on
that
portion
of
the
lump
sum
distribution
allocable
to
20
Iowa.
The
total
amount
of
the
lump
sum
distribution
subject
21
to
separate
federal
tax
shall
be
included
in
net
income
for
22
purposes
of
determining
eligibility
under
subsections
2
and
3
,
23
as
applicable
,
except
the
amount
of
the
lump
sum
distribution
24
exempt
from
state
tax
in
paragraph
“b”
shall
not
be
included
.
25
b.
The
amount
of
a
lump
sum
distribution
that
is
received
26
from
a
governmental
or
other
pension
or
retirement
plan,
27
including
defined
benefit
or
defined
contribution
plans,
28
annuities,
individual
retirement
accounts,
plans
maintained
or
29
contributed
to
by
an
employer,
or
maintained
or
contributed
30
to
by
a
self-employed
person
as
an
employer,
and
deferred
31
compensation
plans
or
any
earnings
attributable
to
the
deferred
32
compensation
plans
is
exempt
from
state
tax
imposed
under
33
paragraph
“a”
if
received
by
a
person
who
is
disabled,
or
is
34
fifty-five
years
of
age
or
older,
or
is
the
surviving
spouse
of
35
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an
individual
or
is
a
survivor
having
an
insurable
interest
in
1
an
individual
who
would
have
qualified
for
the
exemption
under
2
this
subsection
for
the
tax
year.
3
Sec.
62.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
4
deemed
of
immediate
importance,
takes
effect
upon
enactment.
5
Sec.
63.
RETROACTIVE
APPLICABILITY.
This
division
of
this
6
Act
applies
retroactively
to
January
1,
2024,
for
tax
years
7
beginning
on
or
after
that
date.
8
DIVISION
XII
9
ESTIMATED
TAX
THRESHOLD
10
Sec.
64.
Section
422.16,
subsection
12,
paragraph
a,
11
subparagraph
(1),
Code
2024,
is
amended
to
read
as
follows:
12
(1)
Taxpayers
filing
a
return
shall
make
estimated
tax
13
payments
if
their
Iowa
income
tax
liability
can
reasonably
be
14
expected
to
amount
to
two
hundred
one
thousand
dollars
or
more
15
for
the
year.
16
Sec.
65.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
17
effect
January
1,
2025.
18
Sec.
66.
APPLICABILITY.
This
division
of
this
Act
applies
19
to
tax
years
beginning
on
or
after
January
1,
2025.
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