House Study Bill 657 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act relating to the income tax checkoffs for the Iowa 1 state fair foundation fund and the veterans trust fund and 2 volunteer fire fighter preparedness fund, and including 3 retroactive applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6078YC (1) 86 mm/sc

H.F. _____ Section 1. NEW SECTION . 422.12D Income tax checkoff for the 1 Iowa state fair foundation fund. 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 to the foundation 5 fund of the Iowa state fair foundation as established in 6 section 173.22 . If the refund due on the return or the payment 7 remitted with the return is insufficient to pay the amount 8 designated by the taxpayer to the foundation fund, the amount 9 designated shall be reduced to the remaining amount of the 10 refund or the remaining amount remitted with the return. The 11 designation of a contribution to the foundation fund under this 12 section is irrevocable. 13 2. The director of revenue shall draft the income tax form 14 to allow the designation of contributions to the foundation 15 fund on the tax return. The department, on or before January 16 31, shall transfer the total amount designated on the tax 17 form due in the preceding year to the foundation fund. 18 However, before a checkoff pursuant to this section shall be 19 permitted, all liabilities on the books of the department of 20 administrative services and accounts identified as owing under 21 section 8A.504 and the political contribution allowed under 22 section 68A.601 shall be satisfied. 23 3. The Iowa state fair board may authorize payment from 24 the foundation fund for purposes of supporting foundation 25 activities. 26 4. The department of revenue shall adopt rules to implement 27 this section . 28 5. This section is subject to repeal under section 422.12E. 29 Sec. 2. NEW SECTION . 422.12L Joint income tax checkoff for 30 veterans trust fund and volunteer fire fighter preparedness fund. 31 1. A person who files an individual or a joint income tax 32 return with the department of revenue under section 422.13 may 33 designate one dollar or more to be paid jointly to the veterans 34 trust fund created in section 35A.13 and to the volunteer fire 35 -1- LSB 6078YC (1) 86 mm/sc 1/ 3

H.F. _____ fighter preparedness fund created in section 100B.13 . If the 1 refund due on the return or the payment remitted with the 2 return is insufficient to pay the additional amount designated 3 by the taxpayer, the amount designated shall be reduced to the 4 remaining amount of refund or the remaining amount remitted 5 with the return. The designation of a contribution under this 6 section is irrevocable. 7 2. The director of revenue shall draft the income tax form 8 to allow the designation of contributions to the veterans trust 9 fund and to the volunteer fire fighter preparedness fund as 10 one checkoff on the tax return. The department of revenue, 11 on or before January 31, shall transfer one-half of the total 12 amount designated on the tax return forms due in the preceding 13 calendar year to the veterans trust fund and the remaining 14 one-half to the volunteer fire fighter preparedness fund. 15 However, before a checkoff pursuant to this section shall be 16 permitted, all liabilities on the books of the department of 17 administrative services and accounts identified as owing under 18 section 8A.504 and the political contribution allowed under 19 section 68A.601 shall be satisfied. 20 3. The department of revenue shall adopt rules to administer 21 this section . 22 4. This section is subject to repeal under section 422.12E . 23 Sec. 3. REPEAL. Sections 422.12D and 422.12L, Code 2016, 24 are repealed. 25 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 26 retroactively to January 1, 2016, for tax years beginning on 27 or after that date. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to the income tax checkoffs for the Iowa 32 state fair foundation and the veterans trust fund and volunteer 33 fire fighter preparedness fund. 34 Code section 422.12E limits to four the number of income tax 35 -2- LSB 6078YC (1) 86 mm/sc 2/ 3

H.F. _____ checkoffs that can appear on the income tax return. When the 1 same four income tax return checkoffs have been provided on the 2 income tax return for two consecutive years, the two checkoffs 3 for which the least amount has been contributed through March 4 15 of the second tax year are repealed. As a result, the Iowa 5 state fair foundation and the veterans trust fund and volunteer 6 fire fighter preparedness fund checkoffs are scheduled to be 7 removed from the income tax return form after the 2015 tax 8 year. 9 The bill reenacts as new the checkoffs for both the Iowa 10 state fair foundation and the veterans trust fund and volunteer 11 fire fighter preparedness fund. 12 The bill applies retroactively to January 1, 2016, for tax 13 years beginning on or after that date. 14 -3- LSB 6078YC (1) 86 mm/sc 3/ 3