Iowa Code 422.63 – Amount of tax
Current as of: 2024 | Check for updates
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1. The franchise tax is imposed annually in an amount equal to the percent specified in subsection 2 of the net income received or accrued during the taxable year. If the net income of the financial institution is derived from its business carried on entirely within the state, the tax shall be imposed on the entire net income, but if the business is carried on partly within and partly without the state, the portion of net income reasonably attributable to the business within the state shall be specifically allocated or equitably apportioned within and without the state under rules of the director.
Terms Used In Iowa Code 422.63
- Business: means any trade, occupation, activity, or enterprise engaged in for the purpose of selling or distributing tobacco products in this state. See Iowa Code 453A.42
- Director: means the director of the department of revenue. See Iowa Code 453A.42
- net income: means the taxable income as properly computed for federal income tax purposes under section 63 of the Internal Revenue Code, with the following adjustments:
1. See Iowa Code 422.7state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1 year: means twelve consecutive months. See Iowa Code 4.1
2. a. For tax years beginning prior to January 1, 2023, five percent.
b. For tax years beginning on or after January 1, 2023, but before January 1, 2024, four and seven-tenths percent.
c. For tax years beginning on or after January 1, 2024, but before January 1, 2025, four and four-tenths percent.
d. For tax years beginning on or after January 1, 2025, but before January 1, 2026, four and one-tenth percent.
e. For tax years beginning on or after January 1, 2026, but before January 1, 2027, three and eight-tenths percent.
f. For tax years beginning on or after January 1, 2027, three and one-half percent.