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Senate File 2307

Partial Bill History

Bill Text

  1  2 FUND.
  1  3    1.  An individual underpaid taxes fund is established in
  1  4 the state treasury.  The individual underpaid taxes fund shall
  1  5 be separate from the general fund of the state and shall not
  1  6 be considered part of the general fund of the state except in
  1  7 determining the cash position of the state.  Moneys in the
  1  8 fund may be used for cash flow purposes provided that any
  1  9 moneys so allocated are returned to the fund at the end of the
  1 10 fiscal year.  The moneys in the fund are not subject to
  1 11 section 8.33 and shall not be transferred, used, obligated,
  1 12 appropriated, or otherwise encumbered except as provided in
  1 13 this section.
  1 14    2.  Moneys shall be deposited into the individual underpaid
  1 15 taxes fund from contributions made from individual residents
  1 16 and nonresidents of Iowa who believe they have not paid enough
  1 17 state taxes or from any other person.  A contributor to the
  1 18 fund may designate the general purpose for which the
  1 19 contribution should be used.  To the extent practicable, the
  1 20 treasurer of state shall maintain a total for each purpose
  1 21 designated by the contributors.  The designation of a purpose
  1 22 for which a contribution is to be used does not, in any way,
  1 23 restrict or encumber the use of the contribution for any other
  1 24 purpose as established in an appropriation by the general
  1 25 assembly.  However, all contributions shall be used for public
  1 26 purposes only.
  1 27    Notwithstanding section 12C.7, subsection 2, interest or
  1 28 earnings on moneys deposited in the individual underpaid taxes
  1 29 fund shall be credited to the fund.
  1 30    3.  Except as provided for cash flow purposes under
  1 31 subsection 1, the moneys in the individual underpaid taxes
  1 32 fund shall only be used in accordance with an appropriation
  1 33 made by the general assembly.
  1 34    4.  The treasurer of state shall inform the public of the
  1 35 availability of the individual underpaid taxes fund for those
  2  1 who believe their tax burdens are less than the benefits
  2  2 bestowed by the state.
  2  3    Sec. 2.  Section 422.21, Code 2001, is amended by adding
  2  4 the following new unnumbered paragraph:
  2  5    NEW UNNUMBERED PARAGRAPH.  The department shall provide on
  2  6 income tax forms or in the instruction booklets in a manner
  2  7 that will be noticeable to the taxpayers a statement that if
  2  8 the taxpayer determines that the amount of tax owed the state
  2  9 is insufficient to fund all benefits provided by the state,
  2 10 the taxpayer may make a contribution to the state by
  2 11 increasing the amount of tax owed or reducing the amount of
  2 12 refund due with the amount of the increase or reduction, as
  2 13 the case may be, to be deposited into the individual underpaid
  2 14 taxes fund for general operations of the state.  An increase
  2 15 in the amount of tax due or a reduction in the amount of
  2 16 refund due which is made by an individual pursuant to this
  2 17 paragraph shall not be considered a tax but shall only be
  2 18 considered a contribution for state and federal tax purposes.
  2 19    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of
  2 20 immediate importance, takes effect upon enactment.  
  2 21                           EXPLANATION
  2 22    This bill creates an individual underpaid taxes fund in the
  2 23 state treasury.  The fund accepts contributions from
  2 24 individuals who believe that they have not paid enough in
  2 25 state taxes.  In making their contributions, the individuals
  2 26 may designate, in a general way, the purpose for which the
  2 27 contributions are to be used.  However, the moneys in the fund
  2 28 shall be used according to an appropriation made by the
  2 29 general assembly.  The bill contains an instruction to the
  2 30 department of revenue and finance to notify on the income tax
  2 31 form or instruction booklet of the existence of this fund and
  2 32 that an individual may increase the tax due or reduce the
  2 33 refund with the increase or reduction going to the fund.  The
  2 34 increase in tax owed or reduction in refund due shall not be
  2 35 considered a tax but only a contribution for state and federal
  3  1 tax purposes.  Contributions made by a taxpayer to the state
  3  2 for public purposes are charitable contributions and are
  3  3 deductible for state and federal income tax purposes, subject
  3  4 to certain limitations.
  3  5    The bill takes effect upon enactment.  
  3  6 LSB 6349SV 79
  3  7 mg/cls/14

Text: SF02306                           Text: SF02308
Text: SF02300 - SF02399                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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