House File 2033 - Introduced HOUSE FILE 2033 BY HEARTSILL , PETTENGILL , SHEETS , WHEELER , FISHER , LANDON , KERR , HAGER , CARLSON , GUSTAFSON , WILLS , SALMON , LUNDGREN , HINSON , HUSEMAN , WATTS , and KAUFMANN A BILL FOR An Act providing for the designation of voluntary income tax 1 contributions on the Iowa individual income tax return and 2 including retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5424YH (6) 87 mm/jh

H.F. 2033 Section 1. NEW SECTION . 422.12N Voluntary income tax 1 contribution. 2 1. A person who files an individual or a joint income tax 3 return with the department of revenue under section 422.13 4 may designate one dollar or more to be paid as a voluntary 5 income tax contribution. If the refund due on the return or 6 the payment remitted with the return is insufficient to pay 7 the additional amount designated by the taxpayer, the amount 8 designated shall be reduced to the remaining amount remitted 9 with the return. If a taxpayer also designates an amount to an 10 income tax checkoff under section 422.12D, 422.12H, 422.12K, 11 or 422.12L, any refund due on the return or payment remitted 12 with the return shall be credited to those contributions before 13 the voluntary income tax contribution provided in this section. 14 The designation of a voluntary income tax contribution under 15 this section is irrevocable. 16 2. The director of revenue shall draft the income tax form 17 to allow voluntary income tax contributions on the tax return. 18 The voluntary income tax contribution provided in this section 19 shall not be considered an income tax return checkoff subject 20 to section 422.12E. The income tax form shall be drafted in a 21 manner that allows a taxpayer to designate that the voluntary 22 income tax contribution, or portions of the voluntary income 23 tax contribution, be credited to a maximum of five different 24 state funds. The director of revenue and the director of the 25 department of management shall jointly adopt rules identifying 26 all current state funds and shall revise or update such list 27 at least annually, and the director of revenue shall make a 28 complete and current list of such state funds available to 29 taxpayers in preparing their income tax returns. 30 3. A voluntary income tax contribution designated and paid 31 pursuant to this section shall be an unrestricted charitable 32 contribution to the state and shall not be considered an 33 estimated tax payment or an overpayment of tax, or otherwise 34 credited to any account, charge, fee, loan, tax, or other 35 -1- LSB 5424YH (6) 87 mm/jh 1/ 3

H.F. 2033 indebtedness of the taxpayer due the state. 1 4. All contributions collected under this section shall 2 be credited to the state fund or funds designated by the 3 taxpayer. In the event that no state fund is designated for a 4 contribution or a portion of a contribution, such amounts shall 5 be credited to the general fund of the state. 6 5. For purposes of this section, “state fund” means any 7 fund or account of the state that meets all of the following 8 requirements: 9 a. The fund or account is under the control of the general 10 assembly. 11 b. The fund or account is authorized by law to receive 12 moneys. 13 c. The receipt of moneys by the fund or account in the 14 manner provided in this section would not be in violation of 15 any other state or federal law, and would not jeopardize the 16 receipt of federal funds to the fund or account. 17 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 18 retroactively to January 1, 2018, for tax years beginning on 19 or after that date. 20 EXPLANATION 21 The inclusion of this explanation does not constitute agreement with 22 the explanation’s substance by the members of the general assembly. 23 This bill provides for the designation of voluntary 24 income tax contributions by taxpayers who file an Iowa 25 individual income tax return. The bill requires the director 26 of revenue to provide space on the individual income tax 27 form for taxpayers to make irrevocable voluntary income tax 28 contributions to up to five different state funds of the 29 state of Iowa. The director of revenue and the director of 30 the department of management are required to jointly adopt 31 rules identifying all current state funds, and the director of 32 revenue is required to make such list of state funds available 33 to taxpayers in preparing their income tax returns. The bill 34 defines “state fund”. Amounts collected are credited to the 35 -2- LSB 5424YH (6) 87 mm/jh 2/ 3

H.F. 2033 state fund or funds designated by the taxpayer or, if no state 1 fund is designated, to the general fund of the state. 2 If the refund due on the return or the payment remitted with 3 the return is insufficient to pay the voluntary income tax 4 contribution designated by the taxpayer, the amount designated 5 shall be reduced to the remaining amount remitted with the 6 return. Additionally, if a taxpayer also designates an amount 7 to an income tax checkoff as otherwise provided by law, the 8 tax refund or additional payment shall be credited to those 9 checkoffs before the voluntary income tax contribution. The 10 voluntary income tax contribution shall not be considered an 11 income tax checkoff subject to the limitation in Code section 12 422.12E, which limits to four the number of income tax return 13 checkoffs that can appear on the return, and which provides for 14 the automatic repeal of certain checkoffs. 15 The bill provides that the voluntary income tax 16 contributions are unrestricted charitable contributions to the 17 state, and shall not be considered an estimated tax payment, 18 overpayment of tax, or credited to any indebtedness of the 19 taxpayer due the state. 20 The bill applies retroactively to January 1, 2018, for tax 21 years beginning on or after that date. 22 -3- LSB 5424YH (6) 87 mm/jh 3/ 3