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With time running out for the first session of the 111th Congress, House lawmakers are moving to consider legislation that would extend a $32-billion package of tax provisions that expire at the end of 2009. House Ways and Means Committee Chairman Charles B. Rangel, D-N.Y., introduced the Tax Extenders Bill of 2009 (HR 4213) on December 7. The measure includes dozens of provisions that would provide tax relief for small businesses and individuals. The House is expected to adjourn on December 18, giving Congress less than two weeks to complete work on the measure. A committee spokesperson said the House will vote on the bill on December 9.
The extenders tax legislation would be paid for by including the text of Foreign Account Tax Compliance Bill of 2009 (HR 3933, Sen 1934), which would raise $7.6 billion over the next decade. It also includes a plan to stop investment fund managers from paying taxes at the lower capital gains tax rates on funds received for their services and on income received as carried interest in an investment fund. That provision would raise $24.6 billion over 10 years.
Although the tax increases in the bill would raise revenue for a decade, all of the tax relief provisions would expire at the end of 2010 and require 10-year revenue offsets and budgetary estimates. For instance, the bill would provide a one-year extension of the deduction for state and local general sales taxes. According to the Ways and Means Committee, that provision would cost $1.8 billion over 10 years. In addition, extending the additional standard deduction for real property taxes would cost $1.4 billion over 10 years, and extension of the special 15-year cost recovery period for certain leasehold improvements, restaurant buildings and retail improvements would cost $5.390 billion over 10 years.
By Stephen K. Cooper, CCH News Staff
House Ways and Means Press Release: Chairman Rangel Introduces Tax Extenders Bill
Tax Extenders Act of 2009, HR 4213
Summary of the Tax Extenders Act of 2009 (HR 4213)
JCT Estimated Revenue Effects of HR 4213, the Tax Extenders Act of 2009, JCX-59-09
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For unclaimed property purposes, Arizona has revised the dormancy periods for various classes of abandoned property, as follows:
-- traveler's checks --three years (previously, 15 years) after issuance;
-- money orders or similar written instruments, other than third-party bank checks --three years (previously, seven years) after issuance;
-- stock or other equity interests in a corporation, business association, or financial organization, including a security entitlement under Title 47, Chapter 8 --two years (previously, three years) following a specified event;
-- the principal on debt, other than a bearer bond or an original issue discount bond, of a corporation, business association, or financial organization --two years (previously, three years) after the maturity date, and the interest on the debt --two years (previously three years) after the payment date;
-- a demand, savings or time deposit, including a deposit that is automatically renewable, and any interest or dividends --three years (previously, five years) after the earlier of maturity or the date of the last indication by the owner of interest in the property;
-- credits owed to a customer as a result of a retail business transaction --three years (previously, five years) after the obligation accrued;
-- amounts owed by an insurance company on a life or endowment insurance policy or an annuity that has matured or terminated --three years (previously, five years) after the obligation to pay arose, or in the case of a policy or annuity that is payable on proof of death --one year (previously, two years) after the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve is based;
-- a life or endowment insurance policy or annuity contract not matured by actual proof of the death of the insured or annuitant according to the company's records --one year (previously, two years) if certain conditions apply;
-- property that is held by a court, government or governmental subdivision, agency or instrumentality, except for support for spousal maintenance --two years (previously, three years) after the property becomes distributable;
-- property in an individual retirement account, defined benefit plan, or other account or plan that qualifies for tax deferral under federal income tax laws --two years (previously, three years) after a specified event occurs;
-- amounts payable on a check, draft, or similar instrument on which a financial organization or business association is directly liable, including a cashier's check and a certified check, that has been outstanding --three years (previously, five years) after the check, draft, or similar instrument was payable or after issuance, if payable on demand, unless within three years (previously, five years) the owner has communicated in writing with the financial organization or business association concerning the check, draft, or similar instrument or otherwise indicated an interest as evidenced by a memorandum or any other record on file and prepared by an employee of the financial organization or business association;
-- other property for which an abandonment period is not otherwise specified --three years (previously, five years) after the owner's right to demand the property or after the obligation to pay or distribute the property arises, whichever occurs first;
-- excess proceeds deposited with the county treasurer pursuant to Sec. 33-812 --two years (previously, three years) from the date of deposit, if there is no pending application for distribution; and
-- any dividend, profit, distribution, interest, redemption, payment on principal, or other sum held or owing by a business association for or to its shareholder, certificate holder, member, bondholder, or other security holder who has not claimed it, or corresponded in writing with the business association concerning it --two years (previously, three years) after the date prescribed for payment or delivery.
Also, in addition to existing notification requirements, the holder of property that is presumed abandoned must file a report before June 1, 2010, covering the last 12 months before July 1, 2009, and must send written notice to the apparent owner prior to 90 days before filing the report. The Department of Revenue may not grant any extensions of time to comply with these requirements.
Ch. 3 (S.B. 1003), Laws 2009, Fourth Special Session, generally effective November 23, 2009
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