Individual Income Tax Provisions

Monday - 03/14/2022

On March 1, 2022, Governor Kim Reynolds signed into law House File 2317. The Department has released new guidance to explain this tax change as it relates to the following:

  • Individual Income Tax Provisions
    This bill, in part, creates or modifies the following individual income tax provisions. It provides one irrevocable election to exclude from state income tax the net  capital gain from the sale of stock. Excludes certain farm lease payments, certain capital gains of retired farmers, and retirement income for individuals 55 years of  age or older or disabled. The rate reduces over a three-year period then converts to a flat tax rate. The provisions apply to tax years beginning on or after January 1, 2023, and some of the changes are phased in over a number of years. This means that HF 2317 does not impact your tax returns due on May 2, 2022 or May 1, 2023.

This information was sent via GovDelivery to those subscribed to receive Law & Policy updates from the Department. To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest.