Text: SF02306 Text: SF02308 Text: SF02300 - SF02399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 12A.1 INDIVIDUAL UNDERPAID TAXES
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
© 2002 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Fri Mar 22 03:25:00 CST 2002
URL: /DOCS/GA/79GA/Legislation/SF/02300/SF02307/020228.html
jhf