- Associated Press - Wednesday, April 16, 2014

DES MOINES, Iowa (AP) - Gov. Terry Branstad released his tax returns Wednesday, showing he earned $234,907 and paid $28,298 in federal taxes in 2013.

The governor and his wife paid $32,085 in federal taxes but are getting a refund of $3,787. Their state tax return shows they paid in $10,285 in taxes but will get a refund of $4,158. In addition the governor and first lady each received $54 back from the Legislature as all Iowa taxpayers did making their total Iowa tax bill $6,235.

Most of the income came from Branstad’s salary as governor: $127,072. He also earned $54,749 from the state’s retirement pension fund from his earlier service as governor, lieutenant governor and legislator.

Additional income of $22,214 is from capital gains earned on business investments and $35,142 from an IRA distribution left to him by an uncle who died.

Business investments include stock ownership in Liberty Bancshares, a bank holding company, which lost money last year. The governor also owns 13 small town post offices for which he is paid rent, which accounted for $64,673 in income, however, he offset much of that with the bank investment losses.

Branstad’s release of tax documents continued his annual practice of offering his tax details - this year a packet of more than 80 pages including state and federal forms.

Branstad’s chief of staff, Matt Hinch, and his tax preparer, accountant Jamie Ward, made the returns available to reporters.

Branstad donated $40,336 to charities last year, about 17.2 percent of his adjusted gross income.

Hinch said Branstad grew up in a low-income family and “has a great understanding of the needs of folks that are less fortunate. He takes the responsibility of giving back very seriously …”

The charities include numerous Catholic groups including Dowling Catholic High School, the Diocese of Des Moines and Christ the King Parish. Other Iowa-based organizations receiving donations included Living History Farms, Variety Club of Iowa, Terrace Hill Foundation and Iowa Homeless Youth Shelter.

Branstad also contributed $18,270 to college savings plans for his six grandchildren.

The governor paid an effective tax rate of 12.5 percent.

Branstad’s Democratic opponent, Sen. Jack Hatch, released documents Tuesday showing income of $468,591 from real estate development businesses and his state senator’s salary. Hatch, who is leaving his position as a state senator to run for governor, paid $88,455 in federal taxes and $28,640 in state taxes.

He and his wife, Sonja, donated more than $19,000 to charities, about 4 percent of their income.

They paid an effective tax rate of 7 percent.

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