Finds that: (1) The implementation of tax policy is often complicated by mandatory accounting rules;

(2) Such accounting rules should not dictate the application of tax policy adopted by the legislature; and

(3) The department of revenue is often unable to fully implement the will of the legislature due to unanticipated accounting rules or changes to established rules.

Declares it is the intent of the legislature: (1) That the department of revenue should administer the deduction for income on loans secured by a first mortgage fully and according to the original intent of the legislature, without regard for accounting peculiarities required by generally accepted accounting principles; and

(2) That the tax preference is amended to correct a technical inconsistency and the corrections are not intended to create a new or expanded tax preference.