Don’t spend all of your tax rebate yet
If you are already making plans for the federal tax rebate, you might want to consider that the state of Iowa could have its hand out to take a chunk.
The federal rebates would still be subject to Iowa’s income tax unless state lawmakers and Gov. Chet Culver decide to exempt them. That’s what lawmakers did the last time federal tax rebates were issued in 2001.
Renee Mulvey, spokeswoman for the Iowa Department of Revenue, said the tax rate would vary depending on several factors, with a top rate of 8.98 percent.
Iowa House Minority Leader Christopher Rants, R-Sioux City, said Republicans are drafting legislation to ensure Iowans won’t end up paying a state tax on their rebates.
“We don’t want to see it come from the federal government only to then flow into the Iowa treasury instead of being in the pockets of hard-working families,” Rants said.
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