Wednesday, March 26, 2008
Governor Culver Signs Bill Exempting Federal Tax Rebates From State Income Tax
Joined by Democratic and Republican Legislators,
Governor Signs Into Law $67 Million in Tax Relief
(Des Moines)- Today Governor Chet Culver signed into law House File 2417, a bill to exempt federal economic stimulus allocations from individual state income tax. This bill passed unanimously with 100-0 in the House of Representatives and 48-0 in the Iowa Senate.
Governor Culver said, “I believe our philosophy of tax fairness and cutting taxes whenever possible has played an important role in Iowa’s continued economic growth. This package is projected to bring over $1 billion dollars into Iowa, by providing rebates to eligible Iowans who file a 2007 tax return, estimated at over a million people. “
HF 2417 has three key components:
- First, this bill allows Iowa taxpayers to keep all of their federal refund. When taxpayers receive their refund checks, they will not be subject to standard state income taxes.
- Second, this bill provides financial security for Iowa veterans on fixed incomes. HF 2417 ensures the rebate will not be used in calculating income-based eligibility for residence at the Iowa Veterans’ Home. This means, when veterans and their families apply for needed services, they will not be penalized simply for filing their tax returns.
- Third, this bill applies retroactively to all taxpayers who have already filed their 2007 tax returns, and to any tax return filed between now and January, 2009. The bill is effective upon enactment.
“I applaud and thank the members of the Legislature for coming together on this common-sense piece of Legislation, for the benefit of Iowa taxpayers,” continued Governor Culver.
Today, Governor Culver also privately signed the following bills:
Senate File 2111:
This bill provides technical changes and corrections to the blood lead testing and dental screening laws for children. The bill requires that on June 30th annually, each local board must furnish the Department of Public Health with evidence that each child enrolled in school has met the dental screening requirement. The bill also requires that the Board of Directors of each school district furnish the Department of Public Health within sixty days after the start of the school year a list of all children enrolled in kindergarten. The bill also mandates that the Department of Public Health must provide the school districts a list of children who have not met the blood lead testing requirements and will work with the school districts to make sure the children are tested.
Senate File 2156:
This bill brings Iowa law, regulating commercial vehicles, more in line with federal law. The bill was proposed by the Iowa Department of Transportation. No groups registered in opposition to the bill.
Senate File 2221:
- This bill increases the death burial expense under workers’ compensation (section 85.28).
- The current benefit is only $7,500 per individual.
- By increasing the amount it ties it to the Iowa Funeral Director’s average costs. Currently, that is stated as $8,514.
Senate File 2304:
- This bill rescinds the subsections of 89.8 and 89.19 that would otherwise terminate the revolving elevator safety fund and the revolving boiler and pressure vessel safety fund effective July 1, 2012.
- Pursuant to current law, the boiler and elevator revolving funds are set to terminate on July 1, 2012.
- The funds have facilitated the hiring of additional staff to significantly improve customer service and public safety.
- The sunset provisions should be repealed to allow the successful revolving funds to continue beyond 2012.
- The Boiler and Pressure Vessel Board and the Elevator Safety Board formally endorsed repeal of the revolving funds at recent meetings.
- This bill was passed unanimously with the House voting 94-0 and the Senate voting 47-0 in favor.
House File 2215:
- Currently, chapter 7C of the Code of Iowa dictates the amount of time that a certification will remain valid for an allocation of bond cap. This is a thirty day period with the possibility of an additional forty-five day extension. Iowa Finance Authority believes that the current provisions requiring deals to close within seventy-five days of their cap award is overly restrictive for several reasons. One such reason is that borrowers are often not willing to spend too much time and money on a transaction until they know unequivocally that they have a volume cap allocation and the deal can actually be completed.
- The seventy-five day provision is most limiting in that it forces a significant amount of work to be done in a short amount of time, potentially leading to increased costs for borrowers and increased chances for mistakes. Seventy-five days is not a sufficient amount of time in today’s legal and business environment to adequately document and execute a bond transaction. IFA believes that setting a more reasonable time period will allow for increased fluidity and efficiency in these transactions.
- IFA proposes that chapter 7 be amended in this case from a thirty day limit with a forty-five day extension to a time period not to exceed one-hundred twenty days with a thirty day extension.
- Currently a city or county can pass an inducement resolution, issue the bonds, and if they need private activity bond cap, provide a notice to IFA, as the Governor’s designee of the amount needed. This notice is actually a claim for the bond cap that cannot be denied. The bond cap is gone. IFA believes the notice should become an application for bond cap that is either approved, denied, or reduced by IFA before the city council or county board of supervisors is allowed an opportunity to approve a bond resolution and thereby claim private activity bond cap.
- This bill was unanimously passed by both the House 98-0 and the Senate 49-0.
House File 2268:
This bill conforms the Consumer Credit Code to the federal statutory updates and prohibits the transfer of ownership of a motor vehicle pursuant to a consumer rental purchase agreement. The bill clarifies that “Personal property” does not include a motor vehicle, a manufactured home, or a manufactured or mobile home.
House File 2287:
HF 2287 increases fines and forfeiture of pay under either a general courts martial or under a special or summary courts martial. This change was recommended by the Department of Public Defense Military Division.