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Iowa State Exempt Interest - State and Municipal Securities

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Question
Are my Iowa securities tax exempt?

Answer

Include the same amounts of interest income reported on your Federal return with the following modifications:

Add interest from state and municipal securities unless specifically exempt from Iowa tax.

The following securities are exempt: 

  1. Aviation Authority Bonds, Iowa Code section 330A.16
  2. Beginning Farmer Loan Program Bonds, Iowa Code section 16.64
  3. Community College Bond Program Bonds, Iowa Code section 260C.71(6)
  4. Community College Residence Halls and Dormitories Bonds, Iowa Code section 260C.61
  5. County Health Center Bonds, Iowa Code section 331.441(2)"C"(7)
  6. E911 Emergency Telephone Service Program Bonds, Iowa Code section 34A.20(6)
  7. Interstate Bridges Bonds, Iowa Code section 313A.36
  8. Iowa Board of Regents Bonds for buildings and facilities, Iowa Code Chapters 262.41, 262.51, 262.60 and 262A.8
  9. Iowa Higher Education Loan Authority, Iowa Code section 261A.27
  10. Iowa Municipality Urban Renewal Bonds, Iowa Code section 403.9(2)
  11. Iowa Rural Water District Revenue Bonds and notes, Iowa Code section 357A.15
  12. Low Income Housing Bonds, Iowa Code section 403A.12
  13. Prison Infrastructure Revenue Bonds, Iowa Code section 16.177(8)
  14. Regents Institutions Medical and Hospital Buildings at University of Iowa Bonds, Iowa Code section 263A.6
  15. Soil Conservation Districts Revenue Bonds, Iowa Code section 161A.22
  16. Quad Cities Interstate Metropolitan Authority Bonds, Iowa Code chapter 28A.24
  17. Sewage Treatment Works Revenue Bonds, Iowa Code section 16.131(6)
  18. Underground Storage Tank Fund Revenue Bonds, Iowa Code section 455G.6(14)
  19. Vision Iowa Program, Iowa Code section 12.71
  20. IA Utilities Board and Consumer Advocate Building Bonds, IA Code section 12.91(9)
  21. Honey Creek Premier Destination Park Bonds, IA Code section 463C.12(8)
  22. School Infrastructure Program Bonds, IA Code section 12.81(8)
  23. Appropriation Bonds, IA Code section 12.87(8)

Deduct interest received from Federal securities (for example U.S. Savings Bonds, U.S. Treasury Notes).

Do not subtract interest from repurchase agreements of U.S. Government securities.

The following are taxable: 

  1. Government National Mortgage Association (Ginnie Mae) Securities.
  2. Federal National Mortgage Association (Fannie Mae) Securities.
  3. Federal Home Loan Mortgage Association (Freddie Mac) Securities.
  4. Money Market Certificates.
  5. Building and Loan Associations
  6. Credit Unions, federal or state
  7. Export-Import Bank of the United States
  8. Federal Agricultural Mortgage Corporation (Farmer Mac)
  9. Federal Home Loan Mortgage Corporation (Freddie Mac) Securities
  10. Federal Housing Administration
  11. Federal income tax refunds, interest
  12. Federal National Mortgage Association
  13. Federal National Mortgage Association (Fannie Mae) Securities
  14. Government National Mortgage Association (Ginnie Mae) Securities
  15. Merchant Marine (Maritime Administration)
  16. Money Market Certificates
  17. Mortgage Participation Certificates
  18. Savings and Loan Associations, federal or state
  19. Small Business Administration

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Article Details
Views: 516 Created on: Jun 15, 2013
Date updated: Dec 17, 2018
Posted in: States, Iowa

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