SSB 1258 (LSB 2810XC (5) 88)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA)

A BILL FOR

An Act reestablishing individual income tax checkoffs for the Iowa state fair foundation fund and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 173.22, subsection 2, Code 2019, is amended to read as follows:
   2.  A foundation fund is created within the state treasury composed of moneys appropriated or available to and obtained or accepted by the foundation. The foundation fund shall include moneys credited to the fund as provided in section 422.12D 422.12I.
    Sec. 2.  Section 422.12E, Code 2019, is amended to read as follows:
   422.12E  Income tax return checkoffs limited.
   1.  For tax years beginning on or after January 1, 2019, there There shall be allowed no more than four income tax return checkoffs on each income tax return. For Commencing with the tax years year beginning on or after January 1, 2017, when the same four income tax return checkoffs have been provided on the income tax return for two consecutive tax years, the two checkoffs for which the least amount has been contributed, in the aggregate for the first tax year and through March 15 of the second tax year, are repealed on December 31 of the second tax year. 
   2.  If more checkoffs are enacted in the same session of the general assembly than there is space for inclusion on the individual tax return form, the checkoff with the earliest enacted checkoffs date of enactment as determined pursuant to section 3.7 for which there is space for inclusion on the return form shall be included on the return form, and all other checkoffs enacted during that session of the general assembly are repealed on December 31 of the year of enactment. If more checkoffs are enacted in the same session of the general assembly than there is space for inclusion on the individual income tax form and the additional checkoffs are enacted on the same day and it is indeterminable which checkoff has the earliest date of enactment pursuant to section 3.7, the director shall determine which checkoffs shall be included on the return form, and all other checkoffs not included on the return form shall be repealed on December 31 of the year of enactment.
   3.  a.  By July 1 of the second tax year in which two checkoffs are repealed pursuant to subsection 1, the department shall notify the Iowa Code editor which two checkoffs received the least amount of contributions and are repealed. 
   b.  By September 1 of any applicable tax year, the department shall notify the Iowa Code editor of any repeal pursuant to subsection 2.
    Sec. 3.  NEW SECTION.  422.12G  Joint income tax checkoff for veterans trust fund and volunteer fire fighter preparedness fund.
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid jointly to the veterans trust fund created in section 35A.13 and to the volunteer fire fighter preparedness fund created in section 100B.13. If the refund due on the return or the payment remitted with the return is insufficient to pay the additional amount designated by the taxpayer, the amount designated shall be reduced to the remaining amount of refund or the remaining amount remitted with the return. The designation of a contribution under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the veterans trust fund and to the volunteer fire fighter preparedness fund as one checkoff on the tax return. The department of revenue, on or before January 31, shall transfer one-half of the total amount designated on the tax return forms due in the preceding calendar year to the veterans trust fund and the remaining one-half to the volunteer fire fighter preparedness fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 shall be satisfied.
   3.  The department of revenue shall adopt rules to administer this section.
   4.  This section is subject to repeal under section 422.12E.
    Sec. 4.  Section 422.12H, Code 2019, is amended to read as follows:
   422.12H  Income tax checkoff for fish and game protection fund.
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate a contribution to the state fish and game protection fund authorized pursuant to section 456A.16.
   2.  This section is subject to repeal under section 422.12E.
    Sec. 5.  NEW SECTION.  422.12I  Income tax checkoff for the Iowa state fair foundation fund.
   1.  A person who files an individual or a joint income tax return with the department of revenue under section 422.13 may designate one dollar or more to be paid to the foundation fund of the Iowa state fair foundation as established in section 173.22. If the refund due on the return or the payment remitted with the return is insufficient to pay the amount designated by the taxpayer to the foundation fund, the amount designated shall be reduced to the remaining amount of the refund or the remaining amount remitted with the return. The designation of a contribution to the foundation fund under this section is irrevocable.
   2.  The director of revenue shall draft the income tax form to allow the designation of contributions to the foundation fund on the tax return. The department, on or before January 31, shall transfer the total amount designated on the tax form due in the preceding year to the foundation fund. However, before a checkoff pursuant to this section shall be permitted, all liabilities on the books of the department of administrative services and accounts identified as owing under section 8A.504 shall be satisfied.
   3.  The Iowa state fair board may authorize payment from the foundation fund for purposes of supporting foundation activities.
   4.  The department of revenue shall adopt rules to implement this section.
   5.  This section is subject to repeal under section 422.12E.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill reestablishes the individual income tax checkoff for the Iowa state fair foundation fund and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund. 
   A checkoff allows a taxpayer who files an individual or a joint income tax return with the department of revenue to designate a dollar amount to be paid to a specific fund included on the individual income tax form. 
   Currently, the following four checkoffs are included on the individual income tax return form: the Iowa state fair foundation fund, the fish and game protection fund, the child abuse prevention program fund, and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund. 
   Under Code section 422.12E(1), for tax years beginning on or after January 1, 2017, when the same four income tax return checkoffs have been provided on the individual income tax return for two consecutive years, the two checkoffs for which the least amount has been contributed, in the aggregate for the first tax year and through March 15 of the second tax year, are repealed. The Iowa state fair foundation fund checkoff and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund received the least amount contributed in the aggregate for the previous tax year and through March 15 of this tax year, and therefore have been repealed by operation of law.
   The bill reestablishes the Iowa state fair foundation checkoff and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund for inclusion on the 2019 and 2020 individual income tax return forms, after which the checkoffs will again be subject to repeal pursuant to Code section 422.12E(1), if the checkoffs have the least amount of contributions in comparison to the other two checkoffs. 
   The bill specifies that if a checkoff is repealed by operation of law pursuant to Code section 422.12E, the date of the repeal is December 31. 
   For purposes of publishing the Code, the bill requires the department of revenue to notify the Iowa Code editor which two checkoffs received the least amount of contributions during the applicable tax year, and thereby are repealed by operation of law. The bill also requires the department of revenue to notify the Iowa Code editor when more checkoffs are enacted than there is space for inclusion on the individual income tax return form, and thereby are repealed by operation of law as well.
   The amendment to Code section 422.12H relating to the fish and game protection gaming fund specifies that the income tax checkoff for the fish and game protection fund is subject to repeal under Code section 422.12E just as the other checkoffs are subject to repeal, if the fund is one of two checkoffs receiving the least amount of contributions over a two-year period.