Exh 7B.{
~~
~,~
ORDINANCE NO.7 ~ _00_ 14
AN ORDINANCE OF THE CITY OF ATLANTIC BEACH, FLORIDA,
AMENDING CH~iP'I'ER 20, TAXATION, OF THE CODE OF
ORDINANCES OF THE CITY OF ATLANTIC BEACH, BY ADDING
ARTICLE V. ADDITIONAL HOMESTEAD EXEMPTION FOR PERSONS
SIXTY-FIVE (65~ AND OLDER, AND PROVIDING AN EFFECTIVE DATE.
WIiEREAS, Article VII, Section 6(f), Florida Constitution, authorizes the state legislature
to enact a general law allowing municipalities, for the purpose of their respective tax levies, to
grant an additional homestead exemption; and
WHEREAS, any such additional homestead exemption shall not exceed $25,000.00,
applies to any person who has the legal or equitable title to real estate and maintains thereon the
permanent residence of the owner and who has attained age 65 and whose household income does
not exceed $20,000.00; and
WHEREAS, the state legislature enacted Chapter 99-341, Laws of Florida, creating Sec.
196.075, Florida Statutes, implementing Article VII, Section 6(f), Florida Constitution, effective
July 1, 1999; and
WHF1tEAS, the City Commission should provide for an additional homestead exemption
within the provisions and limitations of Article VII, Section 6(f), Florida Constitution, Chapter 99-
341, Laws of Florida, and Section 196.075, Florida Statutes; and
VVIIEREAS, said additional homestead exemption should be in the form of an ordinance
and should be delivered to the Duval County Property Appraiser no later than December 1, 2000,
to be effective in the 2001 tax year; now, therefore
BE IT ENACTID BY THE CITY COMMISSION ON BEHALF OF THE PEOPLE
OF THE CITY OF ATLANTIC BEACH, FLORIDA:
SECTION 1. The Code of Ordinances of the City of Atlantic Beach, Florida, is hereby
amended by adding a new Article V in Chapter 20, Taxation, which article shall read as follows:
"ARTICLE V. ADDITIONAL HOMESTEAD F.xEMPTrON
Sec. 20-80. Exercise of municipal powers.
This article represents an exercise of municipal powers by the City
Commission, pursuant to Sec. 9(12) of the Atlantic Beach Charter. This article
shall apply throughout the City of Atlantic Beach, but only to taxes levied by
Atlantic Beach.
Sec.20-81. Definitions.
As used in this article, the term:
(1) "Household" means a person or group of persons living together in a
room or group of rooms as a housing unit, but the term does not include persons
boarding in or renting a portion of -the dwelling.
Y (2) "Household income" means the adjusted gross income, as defined in
Section 62 of the United States Internal Revenue Code, of all members of a
household.
Sec. 20-82. Additional homestead exemption authorized.
Commencing January 1, 2001, and annually thereafter, pursuant to Article
VII, Section ~6(f), Florida Constitution, and Section 196.075, Florida Statutes, an
additional homestead exemption of $25,000.00 is hereby authorized for any person
who has the legal or equitable title to real estate and maintains thereon the
permanent residence of the owner, who has attained the age of 65 and whose
household income does not exceed $20,000.00, adjusted by the cost-of--living index
for the year 2000.
Sec. 20-83. Annual adjustment to household income.
Commencing January 1, 2001, the household income limitation shall be
adjusted annually, on January 1, by the percentage change in the average cost-of-
living index in the period January 1 through December 31 of the immediate prior
year compared with the same period for the year prior to that. The index is the
average of the monthly consumer-price-index figures for the stated 12-month
period, relative to the United States as a whole, issued by the United States
Department of Labor.
Sec. 20-84. Annual filing of household income statement.
Any taxpayer claiming the additional homestead exemption must submit
annually, not later than March 1 of each year, to the Duval County Property
Appraiser, a sworn statement of household income on a form prescribed by the
Florida Department of Revenue. "
SECTION 2. The City Clerk is hereby directed to deliver a certified copy of this
ordinance to the Duval County Property Appraiser as soon as practicable, but no later than
December 1, 2000.
SECTION 3. This Ordinance shall take effect immediately upon its final passage and
adoption.
f
i
PASSID by the City Commission on first reading this day of ,
2000.
PASSID by the City Commission on second and final reading this day of
2000.
A1',I'F.ST:
MAUREEN IHrTG JOHNS. MESERVE
City Clerk Mayor, Presiding Officer
Approved as to form~and correctness:
C. , ~Q~E
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Art. 7 § 6 CONSTITUTION-1968 REVISION
CONSTITUTION--1968'
(e) By general law and subject to conditions specified therein, the Legislature may provide
to renters, who are permanent residents, ad valorem tax relief on all ad valorem tax levies
.
Such ad valorem tax relief shall be in the form and amount established by general law. 6. Homestead exemptions'c
(f) The legislature may, by general law,
allow counties or municipalities
for the pur
ose of State's homestead tax exen
tuti
l
i
'
.
,
p
their respective tax levies and subject to the provisions of general law, to grant an additional ona
r
ght. Lisbda v.~
Df
Appraiser, App. 3 Dist
7c
homestead tax exemption not exceeding twenty-five thousand dollars to any person who' has .,
review granted 728 Sold B01
the legal or equitable title to real estate and maintains thereon the permanent residence of improvidently granted 737 So
the owner and who has attained age sixty-five and whose household income, as defined by 26. Incapacitated personae
. general law, does not exceed twenty thousand dollars. The general law must allow counties Taxpayer was entitled t
'}
and municipalities to grant this additional exemption, within the limits prescribed in this o
for totally and permanentl
d
subsection, by ordinance adopted in the manner prescribed by general law, and must provide y
though taxpayer was Vin
n~:
for the periodic adjustment of the income limitation prescribed in this subsection for changes ;
physically present inhouse
in the cost of living. ,
involuntarily taken tYorn
he:
Amended, general election, Nov. 3, 1998. ,
taxpayer could not commutifc
_ garding her residence :due t;C
Commentary to 1980, and 1998 Amendments tion, taxpayer's furniture, clot
By William A. B2czxett and Deborah K Kearm,ey $ S. Ald to local Bove.
1980 Amendment
(1979 Senate Joint Resolution 1-B)
Subsection (c) was amended by increasing the homestead exemption for ad valorem school By ti
millage to the first $20,000 of the assessed value of a homestead estate.
Subsection (d) permitted the legislature, by general law, to provide "renters, who are
permanent residents," ad valorem tax relief from school district levies.
1980 Amendment The 1980 amendrnent~a
(1980 Senate Joint Resolution 4-E) of relative ad valorem as
law
" ~~
Subsection (c) clarified that the exemption found in subsection (c) can be increased if the .
This provision was adoF
property owner is not entitled to the exemption found in subsection (d). to assist school funding.
Subsection (d) was amended to create a new section (d) establishing a schedule to raise the Florida Education Fi»anc
ad valorem homestead exemption, other than for the school districts' levy, to a maximum of required local effort
port
$25,000.
Subsection (e) moved the previous section (d) to a new section (e) and broadened the ad ,
assessment rolls of each
districts. See §236.081(4)
valorem tax relief for renters to include al] ad valorem tax levies rather than just ad valorem tax is below the state averag
relief from school district levies. district's level of assessme
1998 Amendment ~ '; $ 9. Local taxes '
(1998 House Joint Resolution 3151)
Subsection (f). The 1998 amendment created subsection (f), which authorized the legislature
to allow counties and municipalities to adopt ordinances that grant an additional homestead tax By ~
exemption not greater than $20,000 to persons 63 years or older whose annual household income
is $20,000 or less.
1998 Amendment
(1997-1998 Constitution Revision Commission Revision 13) The language relating G
amendment. Prior to the
The 1997-98 Constitution Revision Commission removed all gender-specific language con- management purposes wh
tained in this section and replaced it with gender-neutral language. Southern Florida Flood t
District. Pursuant to Anti
Historical Notes impose taxes only if autl-
The 1998 amendment to subsec. (b) of this sec- The addition of subsec. (f) was also approved by
tion was proposed by the Constitution Revision Control District and the S
taxes without referendum
voters at the November 3, 1998, general election.
Commission, and it was approved by voters at the
November 3
1998
general election the 1968 Constitution. '
In the early 1970's; it b
,
,
. state's water resources °w
Library References regional water manageme
existing districtsr It was c
Texts and Treatises S1 Fla Jur 2d, Taxation §§ 17:409, 20:93, 20:95 pre-existing districts wool
,
28 Fla Jur 2d, Hcalth and Sanitation § 6; 42 Fla 20:96, 20:99, 20:103-20:1(Ki, 20:109, 20:1]6,
J
20
]22
2d
20 1976 amendment, therQfo
Florida Water Manageme~
ur
:
,
:123, 20:]25, 20:129, 20:133, 20:136,
, Public Sccuritics and Obligations
20:150, 20:15], 20:155, 20:174, 20:301.
§§ l3, 147; 48 Fla Jur 2d, Special Assessments (later the South Florida Y
§ 29; 50 Fla Jur 2d, Taxation §§ 3:10, 3:18; 6 Am Jur Proof of Facts 111, Humcstcad• authorized the newer wat
These districts had previot
2 ~
§ 196.031 TA3~ATION AND .FINANCE
196.031. Exemption of homesteads . -
Notes of Decisions .:
11. -Residents, persons entitled to exemp. 728 Sold 201, [main volume] appeal dismissed as
tion improvidently granted 73? So.2d 1078.
Lisboa v. Dade County Property Appraiser, .
App. 3 Dist., 705 So.2d 704 (1998), review granted '
----~" 196.075. Additional homestead exemption for persons 65 and older
(1) As used in this section, the. term:
(a) "Household" means a person.or group of persons living together in a room.or group of
rooms as a housing unit, but the term does not include persons boarding in or renting a
portion of the dwelling.
(b) "Household income" means the adjusted gross income, as defined in s. 62 of the United
States Internal Revenue Code, of all members of a household..
(2) In accordance with s. 6(f), Art. VII of the State Constitution,' the board of county
commissioners of any county or the governing authority of any municipality may adopt an
ordinance to allow an additional homestead exemption of up to $25,000 for any person who
has the legal or equitable title to real estate and maintains thereon the permanent residence
of the owner,. who has attained. age 65, and whose household income does not exceed $20,000.
(3) Beginning January 1, 2001, the $20,000 income limitation shall be adjusted annually, on
January 1, by the percentage change in the average cost-of--living index in the period January
1 through December 31 of the immediate prior year compared with the same period for the
year prior to that. The index is the average of_the monthly consumer-price-index figures for'
the stated 12-month period, relative to the United States as a whole, issued by the United
States Department of Labor. -
(4) An ordinance granting additional homestead exemption as authorized by this section .
must mee the following requirements:
~a It must be adopted under the procedures for adoption of a nonemergency ordinance
specified in chapter 125 by a board of county commissioners, or chapter 166 by a muniapal
governing authority.
(b It must specifv that the exemption applies only to taxes levied by the unit of
government granting the exemption. Unless otherwise specified by the county or municipali-
ty, this exemption will apply to all tax levies of the county or municipality granting the
exemption, including dependent special districts and municipal service taxing units.
~It musty ecifv the amount of the ,exemption, which may not exceed $25,000. If the
county or mumcapality specifies a different exemption amount for dependent special districts
or municipal service taxing units, the exemption amount must be uniform in all dependent
special districts or municipal service taxing units within the county or m'uiuapality.
Q! It must require that a taxpayer claiming the exemption annually submit to the property
appraiser, not later than March 1, a sworn statement of household income on a form
prescribed by the Department of Revenue:-
(5) The department must require by rule; that the filing of the statement be supported by
copies of any federal income tax returns for the prior year, any wage and earnings statements
(W-2 forms), and any other documents it finds necessary, for each member of the household,
to be submitted by June 1. The taxpayer's statement shall attest to the accuracy of such
copies. The property appraiser may not grant the exemption without the required documen-
tation. "
(6) The board of county commissioners or munici al overning authority -must deliver a
copy of~an~ ordinance ado ted under this section to the props appraiser no later than
ece~mber 1 of e~Fi year pnor to a year the exemption will take effect. If the ordinance is
repealed, the board of county commissioners or municipal governing authority shall notify the
property appraiser no later than December 1 of the year prior to the year the exemption.
expires.
14
EXEMPTIONF:~~P, ,V;OI
(7) Those persona-~ent
receive an additio~;a~,~
additional homestead. ex
of ss. 196.131 and 196;16
(8) If title is lield~oia
otherwise qualifying: mf
Added by Laws 1999, c:,99-
•E!i ~.
196.095. Exemption
. zone- : ~L
(1) Any real estateu
operates in an ente~P
(2) To claim;an entE
section, a child t~refac
enterprise zone develoF
child care center is}la
governing body, or ,en~
determine if it contains
criteria set out in .this.
that contain the inform;
this section as eligible t
responsible for forward
development agency.
(3) The production,>r
ment of Children {ind'.
governing body or Vent
evidence that the child
Added by Laws 1999, c. 9:
196.111. Property~r
tion; pu
(1) As soon as practi
the several counties m;
the year immediately F
not been filed as of F
together with a notice ~
'r
NOTICE TO
Records in this>~off
exemption for the. curt
If you wish to claim"
property appraiser' ori`
Failure to do so may
.., ~i_:
(2) The expenditure
to be for a county pu
notices are mailed and
Purposes.. ; - _ .
Amended ry Laws 1999;
... .
_. .
:. ::t,-rka. ~.
.-. .~.,.
i
~P'"xON AND FINANCE EXEMPTION § 196.111
('17 Those persons entitled to the homestead exemption in s. 196.031 may apply for and
receive an additional homestead exemption as provided in this section. Receipt of the
additional homestead exemption provided far in this section shall be subject to the provisions
~ volume] appeal dismissed as of ss. 196.131 and 196.161,if applicable.
d 737 So.2d 1078.
(8) If title is held jointly with right of survivorship, the person residing on the property and
otherwise qualifying may receive. the entire amount of the additional homestead exemption.
Added by Laws 1999, c. 99-341, § 1, eff. July 1, 1999.
and older
196.095. Exemption for a licensed child care facility operating in an enterprise
ther in a room or group of zone
boarding in or renting a (1) Any real estate used and owned as a child care facility as defined in s. 402.302 which
operates in an enterprise zone pursuant to chapter 290 is exempt from taxation.
fined in s. 62 of the United (2) To claim an enterprise zone, child care property tax exemption authorized by this
section, a child care facility must file. an application under oath with the governing body or
Ilion, the board of county enterprise zone development agency having jurisdiction over the enterprise zone where the
numcipality may adopt an child care center is located. Within 10 working days after receipt of an application, the
?5,000 for any person who governing body or enterprise zone development agency shall review the application to
a the permanent residence
000.
~e does not exceed $20 determine if it contains all the information required pursuant to this section and meets the
, criteria set out in this section. The overnin bod or a enc shall ce
g g y g y rtify all applications
11 be adjusted annually, on that contain the information required pursuant to this section and meet the criteria set out in
idex in the period January this section as eligible to receive an ad valorem tax exemption. The child care center shall be
:h the same period for the responsible for forwarding all application materials to the governing body or enterprise zone
ner-price-index figures for development agency.
pole, issued by the United
(3) The production by the child care facility operator of a current license by the Depart-
authorized by this section ment of Children and Family Services or local licensing authority and certification by the
governing body or enterprise zone where the ch~7d care center is located is prima facie
evidence that the child care facility owner is entitled to such exemptions.
i . .emergency ordinance
hapter 166 by a municipal Added by Laws 1999, c. 99-~04, § 2, eff. July 1, 1999.
es levied by the unit of 196.111. Property appraisers may notify persons entitled to homestead exemp-
y the county or municipali- lion; publication of notice; costs
municipality granting the (1) As soon as practicable after February 5 of each current year, the property appraisers of
ice taxing units. the several counties may mail to each person to whom homestead exemption was granted for
iot exceed $25,000. If the the year immediately preceding and whose application for exemption for the current year has
dependent special districts not been filed as of February 1 thereof, a form for application for homestead exemption,
uniform in all dependent ~ together with a notice reading substantially as follows:
or municipality.
ally submit to the property NOTICE TO TAXPAYERS ENTITLED TO HOMESTEAD EXEMPTION
Behold income on a form Records in this office indicate that you have not filed an application for homestead
- - - exemption for the current year.
~~tatement be supported by If you wish to claim such exemption, please fill out the enclosed form and file it with your
;e and earnings statements property appraiser on or before March 1,...(year)....
member of the household,
st to the accuracy of such Failure to do so ma constitute a waiver of said exem lion for the ear... ear)....
Y P Y (Y
out the required documen- ...(Property Appraiser)...
authority must deliver a
.... County, Florida
:y appraiser no later than (2) The expenditure of funds for any of the requirements of this section is hereby declared
effect. If the ordinance is to be for a county purpose; and the board of county commissioners of each county shall, if
g authority shall notify the notices are mailed under subsection (1), appropriate and provide the necessary funds for such
,o the year the exemption purposes. .
Amended by Laws 1999, c. 99-6, § 17, eff. June 29, 1999.
15
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;Sec. 62. Adjusted gross income defined
Sec. 62. Adjusted gross income defined
STATUTE
(a) General rule
Page 1 of 10
For purposes of this subtitle, the term'adjusted gross income' means, in the case of an individual, gross
`~.~come minus the following deductions:
(a)(1) Trade and business deductions
The deductions allowed by this chapter (other than by part VII of this subchapter) which are
attributable to a trade or business carried on by the taxpayer, if such trade or business does not consist
of the performance of services by the taxpayer as an employee.
(a)(2) Certain trade and business deductions of employees
(a)(2)(A) Reimbursed expenses of employees
The deductions allowed by part VI (section 161 and following) which consist of expenses paid or
incurred by the taxpayer, in connection with the performance by him of services as an employee, under
a reimbursement or other expense allowance arrangement with his employer. The fact that the
4rPimbursement may be provided by a third party shall not be determinative of whether or not the
preceding sentence applies.
(a)(2)(B) Certain expenses of performing artists
The deductions allowed by section 1.62 which consist of expenses paid or incurred by a qualified
performing artist in connection with the performances by him of services in the performing arts as an
employee.
(a)(3) Losses from sale or exchange of property
The deductions allowed by part VI (sec. 161 and following) as losses from the sale or exchange of
property.
(a)(4) Deductions attributable to rents and royalties
~'i he deductions allowed by part VI (sec. 161 and following), by section 212 (relating to expenses for
production of income), and by section 611 (relating to depletion) which are attributable to property
held for the production of rents or royalties.
(a)(5} Certain deductions of life tenants and income beneficiaries of property
In the case of a life tenant of property, or an income beneficiary of property held in trust, or an heir,
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,• Sec. 62. Adjusted gross income defined
Page 2 of 10
legatee, or devisee of an estate, the deduction for depreciation allowed by section 167 and the
seduction allowed by section 611.
(a)(6) Pension, profit-sharing, and annuity plans ofself-employed individuals
In the case of an individual who is an employee within the meaning of section 401(c)(1), the deduction
allowed by section 404.
(a)(7.) Retirement savings
The deduction allowed by section 21.9 (relating to deduction of certain retirement savings}.
(a)(8) Certain portion of lump-sum distributions from pension plans taxed under
section 402(e)
The deduction allowed by section 402 e 3 .
~:k
(a)(9) Penalties forfeited because of premature withdrawal of funds from time
savings accounts or deposits
The deductions allowed by section 1.65 for losses incurred in any transaction entered into for profit,
though not connected with a trade or business, to the extent that such losses include amounts forfeited
to a bank, mutual savings bank, savings and loan association, building and loan association,
cooperative bank or homestead association as a penalty for premature withdrawal of funds from a time
savings account, certificate of deposit, or similar class of deposit.
(a)(10) Alimony
The deduction allowed by section 215.
(a)(11) Reforestation expenses
,,.~..
The deduction allowed by section 194.
(a)(12) Certain required repayments of supplemental unemployment compensation
benefits
The deduction allowed by section 165 for the repayment to a trust described in paragraph (9) or (17)
of section 501(c) of supplemental unemployment compensation benefits received from such trust if
such repayment is required because of the receipt of trade readjustment allowances under section 231
or 232 of the Trade Act of 1974 (19 U.S.C. 2291 and 2292).
(a)(13) Jury duty pay remitted to employer
Any deduction allowable under this chapter by reason of an individual remitting any portion of any
jury pay to such individual's employer in exchange for payment by the employer of compensation for
the period such individual was performing jury duty. For purposes of the preceding sentence, the term
jury pay' means any payment received by the individual for the discharge of jury duty.
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,Sec. 62. Adjusted gross income defined Page 3 of 10
Nothing in this section shall permit the same item to be deducted more than once.
(b) Qualified performing artist
(b)(1) In general
`ror purposes of subsection (a)(2)(B), the term'qualified performing artist' means, with respect to any
taxable year, any individual if -
(A) such individual performed services in the performing arts as an employee during the taxable
year for at least 2 employers,
(B) the aggregate amount allowable as a deduction under section 162 in connection with the
performance of such services exceeds 10 percent of such individual's gross income attributable
to the performance of such services, and
(C) the adjusted gross income of such individual for the taxable year (determined without regard
to subsection (a)(2)(B)) does not exceed $16,000.
(b)(2) Nominal employer not taken into account
,, ^n individual shall not be treated as performing services in the performing arts as an employee for any
employer during any taxable year unless the amount received by such individual from such employer
for the performance of such services during the taxable year equals or exceeds $200.
(b)(3) Special rules for married couples
(b)(3)(A) In general
Except in the case of a husband and wife who lived apart at all times during the taxable year, if the
taxpayer is married at the close of the taxable year, subsection (a)(2)(B) shall apply only if the
taxpayer and his spouse file a joint return for the taxable year.
(b)(3)(B) Application of paragraph (l)
In the case of a joint return -
(i) paragraph (1) (other than subparagraph (C) thereof) shall be applied separately with respect
to each spouse, but
(ii) paragraph (1)(C) shall be applied with respect to their combined adjusted gross income.
(b)(3)(C) Determination of marital status
For purposes of this subsection, marital status shall be determined under section 7703 a .
(b)(3)(D) Joint return
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,• ~ec. 62. Adjusted gross income defined
Page 4 of 10
For purposes of this subsection, the term'joint return' means the joint return of a husband and wife
made under section 6013.
(c) Certain arrangements not treated as reimbursement
arrangements
For purposes of subsection (a)(2)(A), an arrangement shall in no event be treated as a reimbursement
or other expense allowance arrangement if -
(1) such arrangement does not require the employee to substantiate the expenses covered by the
arrangement to the person providing the reimbursement, or
(2) such arrangement provides the employee the right to retain any amount in excess of the
substantiated expenses covered under the arrangement.
The substantiation requirements of the preceding sentence shall not apply to any expense to the extent
that substantiation is not required under section 274(d) for such expense by reason of the regulations
prescribed under the 2nd sentence thereof.
SOURCE
(Rug. 16, 1954, ch. 736, 68A Stat. 17; Oct. 10, 1962, Pub. L.
87-792, Sec. 7(b), 76 Stat. 828; Feb. 26, 1964, Pub. L. 88-272,
title II, Sec. 213(b), 78 Stat. 52; Dec. 30, 1969, Pub. L. 91-172,
title V, Sec. 531(b), 83 Stat. 655; Sept. 2, 1974, Pub. L. 93-406,
title II, Sec. 2002(a)(2), 2005(c)(9), 88 Stat. 959, 992; Oct. 26,
1974, Pub. L. 93-483, Sec. 6(a), 88 Stat. 1458; Oct. 4, 1976, Pub.
L. 94-455, title V, Sec. 502(x), title XV, Sec. 1501(b)(1), title
Y~IX, Sec. 1901(a)(8), (9), 90 Stat. 1559, 1735, 1765; Nov. 8, 1978,
Pub. L. 95-615, Sec. 203(b), 92 Stat. 3106; Oct. 14, 1980, Pub. L.
96-451, title III, Sec. 301(b), 94 Stat. 1990; Dec. 28, 1980, Pub.
L: 96-608, Sec. 3(a), 94 Stat. 3551; Aug. 13, 1981, Pub. L. 97-34,
title I, Sec. 103(b), 112(b)(2), title III, Sec. 311(h)(1), 95
Stat. 187, 195, 282; Oct. 19, 1982, Pub. L. 97-354, Sec. 5(a)(17),
96 Stat. 1693; July 18, 1984, Pub. L. 98-369, div. A, title IV,
Sec. 491(d)(2), 98 Stat. 849; Oct. 22, 1986, Pub. L. 99-514, title
I, Sec. 131(b)(1), 132(b), (c),~title III, Sec. 301(b)(1), title
XVIII, Sec. 1875(c)(3), 100 Stat. 2113, 2115, 2116, 2217, 2894;
Oct. 13, 1988, Pub. L. 100-485, title VII, Sec. 702(a), 102 Stat.
2426; Nov. 10, 1988, Pub. L. 100-647, title I, Sec. 1001(b)(3)(A),
title VI, Sec. 6007(b), 102 Stat. 3349, 3687; Nov. 5, 1990, Pub. L.
101-508, title XI, Sec. 11802(e)(1), 104 Stat. 1388-530.)
MISC1
~~mendments
1990 - Subsec. (a)(13). Pub. L. 101-508, Sec. 11802(e)(1), amended par. (13) generally. Prior to
amendment, par. (13) read as follows: 'The deduction allowed by section 220.'
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.'Sec. 62. Adjusted gross income defined
Page 5 of 10
1988 -Subsec. (a)(2)(A). Pub. L. 100-647, Sec. 1001(b)(3)(A), inserted at end 'The fact that the
reimbursement may be provided by a third party shall not be determinative of whether or not the
preceding sentence applies.'
Subsec. (a)(13). Pub. L. 100-647, Sec. 6007(b), added par.. (13).
Subsec. (c). Pub. L. 100-485 added subsec. (c).
1986 =Subsec. (a). Pub. L. 99-514, Sec. 132(b)(2)(A), designated existing provisions as subsec. (a)
and added heading.
Subsec. (a)(2). Pub. L. 99-514, Sec. 132(b)(1), amended par. (2) generally, substituting 'Certain trade'
for'Trade' in heading and inserting'of employees' in subpar. (A) heading, substituting provision
relating to deduction of certain expenses of performing artists for provision relating to deduction of
expenses for travel away from home in subpar. (B), and striking out subpar. (C) relating to deduction
of travel expenses and subpar. (D) relating to deduction of expenses of outside salesmen.
Subsec. (a)(3) to (5). Pub. L. 99-514, Sec. 301(b)(1), redesignated pars. (4) to (6) as (3) to (5),
respectively, and struck out former par. (3) which related to long-term capital gains and read as
follows: 'The deduction allowed by section 1202.'
Subsec. (a)(6). Pub. L. 99-514, Sec. 301(b)(1), redesignated par. (7) as (6). Former par. (6)
redesignated (5).
Pub. L. 99-514, Sec. 1875(c)(3), struck out 'to the extent attributable to contributions made on behalf
of such individual' after 'section 404'.
Subsec. (a)(7). Pub. L. 99-514, Sec. 301(b)(1), redesignated par. (10) as (7). Former par. (7)
redesignated (6).
Subsec. (a)(8). Pub. L. 99-514, Sec. 301(b)(1), redesignated par. (11) as (8). Former par. (8) struck
out.
~- Pub. L. 99-514, Sec. 132(c), struck out par. (8) which related to moving expense deduction and read
~w~ follows: 'The deduction allowed by section 217.'
Subsec. (a)(9) to (15). Pub. L. 99-514, Sec. 301(b)(1), redesignated pars. (12) to (15) as (9) to (12),
respectively. Former pars. (10) and (11) redesignated (7) and (8), respectively.
Subsec. (a)(16). Pub. L. 99-514, Sec. 131(b)(1), struck out par. (16) which related to deduction for
two-earner married couples and read as follows: 'The deduction allowed by section 221.'
Subsec. (b). Pub. L. 99-514, Sec. 132(b)(2)(B), added subsec. (b).
1984 -Par. (7). Pub. L. 98-3 69, Sec. 491(d)(2), substituted 'and annuity' for 'annuity, and bond
purchase' in heading, and substituted 'the deduction allowed by section 404' for 'the deductions
allowed by section 404 and section 405(c)' in text.
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Sec. 62. Adjusted gross income defined
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1983 -Par. (9). Pub. L. 97-354 repealed par. (9) relating to the deduction allowed by section 1379(b)
(3).
1981 -Par. (10). Pub. L. 97-34, Sec. 311(h)(1), struck out 'and the deduction allowed by section 220
(relating to retirement savings for certain married individuals)' after'retirement savings'.
Par. (14). Pub. L. 97-34, Sec. 112(b)(2), redesignated par. (15) as (14). Former par. (14), relating to
deduction for certain expenses of living abroad, was struck out.
Par. (15). Pub. L. 97-34, Sec. 112(b)(2), redesignated par. (16) as (15). Former par. (15) redesignated
(14).
Par, (lfr). Pub. L. 97-34, Sec. 103(b), 112(b)(2), added par. (16). Former par. (16) redesignated (15).
1980 -Par. (15). Pub. L. 96-451 added par. (15).
Par, (16). Pub. L. 96-608 added par. (16).
1978 -Par. (14). Pub. L. 95-615 added par. (14).
1976 -Par. (10). Pub. L. 94-455, Sec. 1501(b)(1), inserted reference to the deduction allowed by
section 220 (relating to retirement savings for certain married individuals).
Pars. (11), (12). Pub. L. 94-455, Sec. 1901(x)(8); (9), redesignated par. (11) relating to penalties
'~~rfeited because of premature withdrawal of funds from time savings accounts or deposits, as par.
(12), and substituted 'trade or business, to the extent' for'trade or business to the extent'.
Par. (13). Pub. L. 94-455, Sec. 502(x), added par. (13).
1974 -Par. (10). Pub. L. 93-406, Sec. 2002(x)(2), added par. (10).
Par. (11). Pub. L. 93-483 added par. (11) relating to penalties forfeited because of premature
withdrawal of funds from time savings accounts or deposits. Another par. (11) relating to certain
-- portions of lump-sum distributions from pension plans taxed under section 402 e of this title, was
added by Pub. L. 93-406, Sec. 2405(c)(9).
T969 -Par. (9). Pub. L. 91-172 added par. (9).
1964 -Par. (8). Pub. L. 88-272 added par. (8).
F~`1962 -Par. (7). Pub. L. 87-792 added par. (7).
Effective Date Of 1988 Amendments
Amendment by section 1001(b)(3)(A) of Pub. L. 100-647 effective, except as otherwise provided, as
if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(x) of Pub. L. 100-647, set out as a note under section 1 of this title.
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dec. 62. Adjusted gross income defined
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Section 6007(d) of Pub. L. 100-647 provided that: 'The amendments made by this section (enacting
section 220 of this title, amending section 62 of this title, and renumbering former section 220 of this
title as section 221 of this title) shall apply as if included in the amendments made by section 132 of
the Tax Reform Act of 1986 (Pub. L. 99-514).'
Section 702(b) of Pub. L. 100-485 provided that: 'The amendment made by subsection (a) (amending
this section) shall apply to taxable years beginning after December 31, 1988.'
F~ffective Date Of 1986 Amendment
Amendment by sections 131(b)(1) and 132(b), (c) of Pub. L. 99-514 applicable to taxable years
beginning after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out as a note under section 1.
of this title.
Section 301(c) of Pub..L. 99-514 provided that: 'The amendments made by this section (amending this
section and sections 170, 172, 219, 220, 223, 642, 643, 691, 871, 1211, 1212, and 1402 of this title
and repealing section 1202 of this title) shall apply to taxable years beginning after December 31,
1986.'
Section 1875(c)(12) of Pub. L. 99-514 provided that: 'The amendments made by paragraphs (3), (4),
and (6) (amending this section and sections 219 and 408 of this title) shall take effect as if included in
the amendments made by section 238 of the Tax Equity and Fiscal Responsibility Act of 1982 (section
238 of Pub. L. 97-248, see section 241 of Pub. L. 97-248, set out as an Effective Date note under
section 416 of this title).'
Effective Date Of 1984 Amendment
'Section 491(f)(1) of Pub. L. 98-369 provided that: 'The amendments and repeals made by subsections
(a), (b), and (d) (amending this section, sections 55, 72, 172, 219, 402, 403, 406, 407, 408, 412, 414,
415, 457, 2039, 2517, 3121, 3306, 3401, 4972, 4973, 4975, 6047, 6058, 6104, 6652, 7207, 7476, and
7701 of this title, section 3107 of Title 3 1, Money and Finance, and section 409 of Title 42, The
Public Health and Welfare, and repealing sections 405 and 409 of this title) shall apply to obligations
-- issued after December 31, 1983.'
Effective Date Of 1983 Amendment
Par. (9) as in effect before date of repeal by Pub. L. 97-354 to remain in effect for years beginning
before Jan. 1, 1984, see section 6(b)(1) of Pub. L. 97-354, set out as an Effective Date note under
section 3761 of this title.
Effective Date Of 1981 Amendment
Section 103(d) of Pub. L. 97-34 provided that: 'The amendments made by this section (enacting
section 219 of this title and amending this section and sections 85 and 105 of this title) shall apply to
taxable years beginning after December 31, 1981.'
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Amendment by sections 112(b)(2) and 311(h)(1) of Pub. L. 97-34 applicable to taxable years
beginning after Dec. 31, 1981, see sections 115 and 311(1)(1) of Pub. L. 97-34, set out as notes under
sections 911 and 219, respectively, of this title.
Effective Date Of 1980 Amendments
Section 3(b) of Pub. L. 96-608 provided that: 'The amendment made by subsection (a) (amending this
section) shall apply to repayments made in taxable years beginning after the date of the enactment of
this Act (Dec. 28, 1980).'
Amendment by Pub. L. 96-451 applicable with respect to additions to capital account made after Dec.
31, 1979, see section 301(d) of Pub. L. 96-451, set out as an Effective Date note under section 194 of
this title.
effective Date Of 1978 Amendment; Election Of Prior Law
Amendment by Pub. L. 95-615 applicable to taxable years beginning after Dec. 31, 1977, with
provision for election of prior law, see section 209 of Pub. L. 95-615, set out as a note under section
911 of this title.
Effective Date Of 1976 Amendment
Section 502(c) of Pub. L. 94-455 provided that: 'The amendments made by this section (amending this
section and section 3402 of this title) shall apply to taxable years beginning after December 31, 1976.'
Section 1501(d) of Pub. L. 94-455 provided that: 'The amendments made by this section (enacting
section 220 of this title, amending this section and sections 219, 408, 409, 3401, 4973, and 6047 of
this title, and renumbering former section 220 as 221 of this title), other than the amendment made by
,~~ibsection (b)(3), shall apply to taxable years beginning after December 31, 1976. The amendment
made by subsection (b)(3) (amending section 415 of this title) shall apply to years beginning after
December 31, 1976.'
Amendment by section 1901(a)(8), (9) of Pub. L. 94-455 applicable with respect to taxable years
beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94-455, set out as a note under section
2 of this title.
Effective Date Of 1974 Amendments
Section 6(b) of Pub. L. 93-483 provided that: 'The amendment made by this section (amending this
section) applies to taxable years beginning after December 31, 1972.'
Amendment by section 2002(a)(2) of Pub. L. 93-406 applicable to taxable years beginning after Dec.
31, 1974, see section 2002(1)(1) of Pub. L. 93-406, set out as an Effective Date note under section
1.9 of this title.
Amendment by section 2005(c)(9) of Pub. L. 93-406 applicable only with respect to distributions or
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payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005
(d) of Pub. L. 93-406, set out as a note under section 402 of this title.
Effective Date Of 1969 Amendment
Amendment by Pub. L. 91-172 applicable with respect to taxable years of electing small business
corporations beginning after Dec. 31, 1970, see section 531(d) of Pub. L. 91-172, set out`as an
Effective Date note under section 1379 of this title.
Effective Date Of 1964 Amendment
Section 213(d) of Pub. L. 88-272 provided that: 'The amendments made by subsections (a) (enacting
section 217 and redesignating former section 21.7 as 218) and (b) (amending this section) shall apply
to expenses incurred after December 31, 1963, in taxable years ending after such date. The
amendment made by subsection (c) (amending section 3401 of this title) shall apply with respect to
remuneration paid after the seventh day following the date of the enactment of this Act (Feb. 26,
1964).'
Effective Date Of 1962 Amendment
Amendment by Pub. L. 87-792 applicable to taxable years beginning after Dec. 31, 1962, see section 8
of Pub. L. 87-792, set out as a note under section 22 of this title.
Savings Provision
For provisions that nothing in amendment by Pub. L. 101-508 be construed to affect treatment of
certain transactions occurring, property acquired, or items of income, loss, deduction, or credit taken
into account prior to Nov. 5, 1990, for purposes of determining liability for tax for periods ending
after Nov. 5, 1990, see section 11821(b} of Pub. L. 101-508, set out as a note under section 29 of this
title.
_ Plan Amendments Not Required Until January 1, 1989
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI (Sec.
"i 101-1147 and 1171-1177) or title XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to be made before the first plan
year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
Commuting Expenses
Pub. L. 95-427, Sec. 2, Oct. 7, 1978, 92 Stat. 996, as amended by Pub. L. 96-167, Sec. 2, Dec. 29,
1979, 93 Stat. 1275, provided that with respect to transportation costs paid or incurred after
December 31, 1976, and on or before May 31, 1981, the application of sections 62, 162, and 262 and
of chapters 21, 23, and 24 of the Internal Revenue Code of 1954 (now 1986) to transportation
expenses in traveling between a taxpayer's residence and place of work be determined without regard
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„Sec. 62. Adjusted gross income defined
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to Revenue Ruling 76-453 or any other regulation, ruling, or decision reaching the same or similar
result, and with full regard to the rules in effect before that Revenue Ruling.
Pub. L. 95-615, Sec. 2, Nov. 8, 1978, 92 Stat. 3097, provided that with respect to'transportation
costs paid or incurred after Dec. 31, 1976, and before Apr. 30, 1978, the application of sections 62,
162, and 262 .and chapters 21, 23, and 24 of the Internal Revenue Code. of .1954 (now 1986) to
transportation expenses in traveling between a taxpayer's residence and place of work be determined
without regard to Revenue Ruling 76-453 or any other regulation, ruling or decision reaching the
same or similar result, and with full regard to the rules in effect before that Revenue Ruling, and
ceased ~o have effect on the day after Nov. 8, 1978 pursuant to section 210(a) of that Act.
CROSS
Cross References
Lessee, coal disposed with retained economic interest, see section 631 of this title.
Percentage allowed for charitable, etc., contributions, see section 1.70 of this title.
SECREF
Section Referred To In Other Sections
"'his section is referred to in section 3402 of this title; title 20 section 1070a-6; title 21 section 849.
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