Senate File 295 H-1309 Amend the amendment, H-1308, to Senate File 295, as 1 passed by the Senate, as follows: 2 1. Page 18, after line 49 by inserting: 3 < DIVISION ___ 4 TAXPAYERS TRUST FUND 5 Sec. ___. Section 8.54, subsection 5, Code 2013, is 6 amended by striking the subsection. 7 Sec. ___. Section 8.55, subsection 2, Code 2013, is 8 amended to read as follows: 9 2. The maximum balance of the fund is the amount 10 equal to two and one-half percent of the adjusted 11 revenue estimate for the fiscal year. If the amount of 12 moneys in the Iowa economic emergency fund is equal to 13 the maximum balance, moneys in excess of this amount 14 shall be distributed as follows: 15 a. The first sixty million dollars of the 16 difference between the actual net revenue for the 17 general fund of the state for the fiscal year and the 18 adjusted revenue estimate for the fiscal year shall be 19 transferred to the taxpayers trust fund. 20 b. The remainder of the excess, if any, shall be 21 transferred to the general fund of the state. 22 Sec. ___. Section 8.57E, subsection 2, Code 2013, 23 is amended to read as follows: 24 2. Moneys in the taxpayers trust fund shall only 25 be used pursuant to appropriations or transfers made 26 by the general assembly for tax relief. During each 27 fiscal year beginning on or after July 1, 2014, in 28 which the balance of the taxpayers trust fund equals or 29 exceeds thirty million dollars, there is transferred 30 from the taxpayers trust fund to the Iowa taxpayers 31 trust fund tax credit fund created in section 422.11E, 32 the entire balance of the taxpayers trust fund to be 33 used for the Iowa taxpayers trust fund tax credit in 34 accordance with section 422.11E, subsection 5. 35 Sec. ___. Section 8.58, Code 2013, is amended to 36 read as follows: 37 8.58 Exemption from automatic application. 38 1. To the extent that moneys appropriated under 39 section 8.57 do not result in moneys being credited 40 to the general fund under section 8.55, subsection 2 , 41 moneys Moneys appropriated under in section 8.57 and 42 moneys contained in the cash reserve fund, rebuild 43 Iowa infrastructure fund, environment first fund, Iowa 44 economic emergency fund, and taxpayers trust fund shall 45 not be considered in the application of any formula, 46 index, or other statutory triggering mechanism which 47 would affect appropriations, payments, or taxation 48 rates, contrary provisions of the Code notwithstanding. 49 2. To the extent that moneys appropriated under 50 -1- H1308.1710 (3) 85 md/sc 1/ 5 #1.
section 8.57 do not result in moneys being credited 1 to the general fund under section 8.55, subsection 2 , 2 moneys Moneys appropriated under in section 8.57 and 3 moneys contained in the cash reserve fund, rebuild 4 Iowa infrastructure fund, environment first fund, Iowa 5 economic emergency fund, and taxpayers trust fund shall 6 not be considered by an arbitrator or in negotiations 7 under chapter 20 . 8 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 9 of this Act, being deemed of immediate importance, 10 takes effect upon enactment. 11 Sec. ___. RETROACTIVE APPLICABILITY. This division 12 of this Act applies retroactively to July 1, 2012, to 13 moneys attributed to fiscal years beginning on or after 14 July 1, 2012. 15 DIVISION ___ 16 IOWA TAXPAYERS TRUST FUND TAX CREDIT 17 Sec. ___. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS 18 TRUST FUND TAX CREDIT TRANSFER. During the fiscal 19 year beginning July 1, 2013, there is transferred from 20 the taxpayers trust fund created in section 8.57E to 21 the Iowa taxpayers trust fund tax credit fund created 22 in section 422.11E, an amount equal to the sum of 23 the balance of the taxpayers trust fund as determined 24 after the close of the fiscal year beginning July 1, 25 2012, and ending June 30, 2013, including the amount 26 transferred for that fiscal year to the taxpayers trust 27 fund from the Iowa economic emergency fund created 28 in section 8.55 in the fiscal year beginning July 1, 29 2013, and ending June 30, 2014, to be used for the Iowa 30 taxpayers trust fund tax credit in accordance with 31 section 422.11E, subsection 5. 32 Sec. ___. Section 257.21, unnumbered paragraph 2, 33 Code 2013, is amended to read as follows: 34 The instructional support income surtax shall be 35 imposed on the state individual income tax for the 36 calendar year during which the school’s budget year 37 begins, or for a taxpayer’s fiscal year ending during 38 the second half of that calendar year and after the 39 date the board adopts a resolution to participate 40 in the program or the first half of the succeeding 41 calendar year, and shall be imposed on all individuals 42 residing in the school district on the last day of 43 the applicable tax year. As used in this section , 44 “state individual income tax” means the taxes computed 45 under section 422.5 , less the amounts of nonrefundable 46 credits allowed under chapter 422, division II , except 47 for the Iowa taxpayers trust fund tax credit allowed 48 under section 422.11E . 49 Sec. ___. NEW SECTION . 422.11E Iowa taxpayers 50 -2- H1308.1710 (3) 85 md/sc 2/ 5
trust fund tax credit. 1 1. For purposes of this section, unless the context 2 otherwise requires: 3 a. “Eligible individual” means, with respect to 4 a tax year, an individual who makes and files an 5 individual income tax return pursuant to section 6 422.13. “Eligible individual” does not include 7 an estate or trust, or an individual for whom an 8 individual income tax return was not timely filed, 9 including extensions. 10 b. “Unclaimed tax credit” means, with respect to 11 a tax year, the aggregate amount by which the Iowa 12 taxpayers trust fund tax credits that were eligible to 13 be claimed by eligible individuals, if any, exceeds the 14 Iowa taxpayers trust fund tax credits actually claimed 15 by eligible individuals, if any. 16 2. The taxes imposed under this division, less the 17 credits allowed under this division except the credits 18 for withheld tax and estimated tax paid in section 19 422.16, shall be reduced by an Iowa taxpayers trust 20 fund tax credit to an eligible individual for the tax 21 year beginning January 1 immediately preceding July 1 22 of any fiscal year during which a transfer, if any, is 23 made from the taxpayers trust fund in section 8.57E to 24 the Iowa taxpayers trust fund tax credit fund created 25 in this section. 26 3. The credit shall be equal to the quotient of 27 the amount transferred to the Iowa taxpayers trust 28 fund tax credit fund in the applicable fiscal year, 29 divided by the number of eligible individuals for the 30 tax year immediately preceding the tax year for which 31 the credit in this section is allowed, as determined 32 by the director of revenue in accordance with this 33 section, rounded down to the nearest whole dollar. The 34 department of revenue shall draft the income tax form 35 for any tax year in which a credit will be allowed 36 under this section to provide the information and space 37 necessary for eligible individuals to claim the credit. 38 4. Any credit in excess of the taxpayer’s liability 39 for the tax year is not refundable and shall not be 40 credited to the tax liability for any following year 41 or carried back to a tax year prior to the tax year in 42 which the taxpayer claims the credit. 43 5. a. There is established within the state 44 treasury under the control of the department an Iowa 45 taxpayers trust fund tax credit fund consisting of any 46 moneys transferred by the general assembly by law from 47 the taxpayers trust fund created in section 8.57E for 48 purposes of the credit provided in this section. For 49 the fiscal year beginning July 1, 2013, and for each 50 -3- H1308.1710 (3) 85 md/sc 3/ 5
fiscal year thereafter, the department shall transfer 1 from the Iowa taxpayers trust fund tax credit fund 2 to the general fund of the state, the lesser of the 3 balance of the Iowa taxpayers trust fund tax credit 4 fund or an amount of money equal to the Iowa taxpayers 5 trust fund tax credits claimed in that fiscal year, if 6 any. Any moneys in the Iowa taxpayers trust fund tax 7 credit fund which represent unclaimed tax credits shall 8 immediately revert to the taxpayers trust fund created 9 in section 8.57E. Interest or earnings on moneys in 10 the Iowa taxpayers trust fund tax credit fund shall be 11 credited to the taxpayers trust fund created in section 12 8.57E. 13 b. The moneys transferred to the general fund of 14 the state in accordance with this subsection shall not 15 be considered new revenues for purposes of the state 16 general fund expenditure limitation under section 8.54 17 but instead as replacement of a like amount included in 18 the expenditure limitation for the fiscal year in which 19 the transfer is made. 20 Sec. ___. Section 422D.2, Code 2013, is amended to 21 read as follows: 22 422D.2 Local income surtax. 23 A county may impose by ordinance a local income 24 surtax as provided in section 422D.1 at the rate set 25 by the board of supervisors, of up to one percent, 26 on the state individual income tax of each individual 27 residing in the county at the end of the individual’s 28 applicable tax year. However, the cumulative total of 29 the percents of income surtax imposed on any taxpayer 30 in the county shall not exceed twenty percent. The 31 reason for imposing the surtax and the amount needed 32 shall be set out in the ordinance. The surtax rate 33 shall be set to raise only the amount needed. For 34 purposes of this section , “state individual income tax” 35 means the tax computed under section 422.5 , less the 36 amounts of nonrefundable credits allowed under chapter 37 422, division II , except for the Iowa taxpayers trust 38 fund tax credit allowed under section 422.11E . 39 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 40 of this Act, being deemed of immediate importance, 41 takes effect upon enactment. 42 Sec. ___. RETROACTIVE APPLICABILITY. This division 43 of this Act applies retroactively to January 1, 2013, 44 for tax years beginning on or after that date. > 45 2. Page 19, line 8, after < property, > by inserting 46 < modifying provisions relating to the taxpayers trust 47 fund, providing a taxpayers trust fund tax credit, > 48 3. By renumbering, redesignating, and correcting 49 internal references as necessary. 50 -4- H1308.1710 (3) 85 md/sc 4/ 5 #2.
______________________________ COWNIE of Polk -5- H1308.1710 (3) 85 md/sc 5/ 5