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Iowa State Exempt Dividends

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Question
Iowa State Exempt Dividends

Answer

Dividends from certain Iowa state and municipal securities are exempt from Iowa tax

The following securities are exempt: 

  1. Aviation Authority Bonds, IA Code Sec. 330A.16.
  2. Beginning Farmer Loan Program Bonds, IA Code Sec. 175.17.
  3. Community College Bond Program Bonds, IA Code Sec. 260C.71(6).
  4. Community College Residence Halls and Dormitories Bonds, IA Code Sec. 260C.61.
  5. County Health Center Bonds, IA Code Sec. 331.441(2) C (7).
  6. E911 Emergency Telephone Service Program Bonds, IA Code Sec. 34A.20(6).
  7. Interstate Bridges Bonds, IA Code Sec. 313A.36.
  8. IA Board of Regents Bonds for buildings and facilities, IA Code Chapters 262.41, 262.51 and 262.60.
  9. IA College Super Savings Plan Bonds, IA Code Chapter 262A.
  10. IA Higher Education Loan Authority, IA Code Sec. 261A.27.
  11. IA Municipality Urban Renewal Bonds, IA Code Sec. 403.9(2).
  12. IA Rural Water District Revenue Bonds and Notes, IA Code Sec. 57A.15.
  13. Local Government Flood Damage Program, IA Code Sec. 16.183(4).
  14. Low Income Housing Bonds, IA Code Sec. 403A.12.
  15. Municipal Investment Recovery Bonds, IA Code Sec. 16.173(4).
  16. Prison Infrastructure Revenue Bonds, IA Code Sec. 16.177(8).
  17. Regents Institutions Medical and Hospital Buildings at University of IA Bonds, IA Code Sec. 263A.6.
  18. Soil Conservation Districts Revenue Bonds, IA Code Sec. 161A.22.
  19. Quad Cities Interstate Metropolitan Authority Bonds, IA Code Chapter 28A.24.
  20. Sewage Treatment Works Revenue Bonds, IA Code Sec. 16.131(6).
  21. Underground Storage Tank Fund Revenue Bonds, IA Code Sec. 455G.6(14).
  22. Vision IA Program, IA Code Sec. 12.71.
  23. Warehouse Project Revenue Bonds, IA Code Chapter 123.159.
  24. IA Utilities Board and Consumer Advocate Building Bonds, IA Code Sec. 422.7(45).
  25. Honey Creek Premier Destination Park Bonds, IA Code Sec. 463C.12(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 Assoc. (Ginnie Mae) Securities.
  2. Federal National Mortgage Assoc. (Fannie Mae) Securities.
  3. Federal Home Loan Mortgage Assoc. (Freddie Mac) Securities.
  4. Money Market Certificates.

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Article Details
Views: 840 Created on: Jun 15, 2013
Date updated: Aug 13, 2015
Posted in: STATES, Iowa

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