Senate File 53 S-3003 Amend Senate File 53 as follows: 1 1. By striking everything after the enacting clause 2 and inserting: 3 DIVISION I 4 TAXPAYERS TRUST FUND 5 < Section 1. Section 8.54, subsection 5, Code 2013, 6 is amended by striking the subsection. 7 Sec. 2. 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. 3. Section 8.57E, subsection 2, Code 2013, is 23 amended to read as follows: 24 2. Moneys in the taxpayers trust fund shall only be 25 used pursuant to appropriations or transfers made by 26 the general assembly for tax relief. 27 Sec. 4. Section 8.58, Code 2013, is amended to read 28 as follows: 29 8.58 Exemption from automatic application. 30 1. To the extent that moneys appropriated under 31 section 8.57 do not result in moneys being credited 32 to the general fund under section 8.55, subsection 2 , 33 moneys Moneys appropriated under in section 8.57 and 34 moneys contained in the cash reserve fund, rebuild 35 Iowa infrastructure fund, environment first fund, Iowa 36 economic emergency fund, and taxpayers trust fund shall 37 not be considered in the application of any formula, 38 index, or other statutory triggering mechanism which 39 would affect appropriations, payments, or taxation 40 rates, contrary provisions of the Code notwithstanding. 41 2. To the extent that moneys appropriated under 42 section 8.57 do not result in moneys being credited 43 to the general fund under section 8.55, subsection 2 , 44 moneys Moneys appropriated under in section 8.57 and 45 moneys contained in the cash reserve fund, rebuild 46 Iowa infrastructure fund, environment first fund, Iowa 47 economic emergency fund, and taxpayers trust fund shall 48 not be considered by an arbitrator or in negotiations 49 under chapter 20 . 50 -1- SF53.22 (3) 85 mm/sc 1/ 7 #1.

Sec. 5. EFFECTIVE UPON ENACTMENT. This division of 1 this Act, being deemed of immediate importance, takes 2 effect upon enactment. 3 Sec. 6. RETROACTIVE APPLICABILITY. This division 4 of this Act applies retroactively to July 1, 2012, to 5 moneys attributed to fiscal years beginning on or after 6 July 1, 2012. 7 DIVISION II 8 IOWA TAXPAYERS TRUST FUND TAX CREDIT 9 Sec. 7. TAXPAYERS TRUST FUND —— IOWA TAXPAYERS 10 TRUST FUND TAX CREDIT TRANSFER. During the fiscal 11 year beginning July 1, 2013, there is transferred from 12 the taxpayers trust fund created in section 8.57E to 13 the Iowa taxpayers trust fund tax credit fund created 14 in section 422.11E, an amount equal to the sum of 15 the balance of the taxpayers trust fund as determined 16 after the close of the fiscal year beginning July 1, 17 2012, and ending June 30, 2013, including the amount 18 transferred for that fiscal year to the taxpayers trust 19 fund from the Iowa economic emergency fund created 20 in section 8.55 in the fiscal year beginning July 1, 21 2013, and ending June 30, 2014, to be used for the Iowa 22 taxpayers trust fund tax credit in accordance with 23 section 422.11E, subsection 5. 24 Sec. 8. Section 257.21, Code 2013, is amended to 25 read as follows: 26 257.21 Computation of instructional support amount. 27 1. The department of management shall establish 28 the amount of instructional support property tax to be 29 levied and the amount of instructional support income 30 surtax to be imposed by a district in accordance with 31 the decision of the board under section 257.19 for 32 each school year for which the instructional support 33 program is authorized. The department of management 34 shall determine these amounts based upon the most 35 recent figures available for the district’s valuation 36 of taxable property, individual state income tax 37 paid, and budget enrollment in the district, and shall 38 certify to the district’s county auditor the amount of 39 instructional support property tax, and to the director 40 of revenue the amount of instructional support income 41 surtax to be imposed if an instructional support income 42 surtax is to be imposed. 43 2. The instructional support income surtax shall 44 be imposed on the state individual income tax for the 45 calendar year during which the school’s budget year 46 begins, or for a taxpayer’s fiscal year ending during 47 the second half of that calendar year and after the 48 date the board adopts a resolution to participate 49 in the program or the first half of the succeeding 50 -2- SF53.22 (3) 85 mm/sc 2/ 7

calendar year, and shall be imposed on all individuals 1 residing in the school district on the last day of 2 the applicable tax year. As used in this section , 3 “state individual income tax” means the taxes computed 4 under section 422.5 , less the amounts of nonrefundable 5 credits allowed under chapter 422, division II , except 6 for the Iowa taxpayers trust fund tax credit allowed 7 under section 422.11E . 8 Sec. 9. NEW SECTION . 422.11E Iowa taxpayers trust 9 fund tax credit. 10 1. For purposes of this section, unless the context 11 otherwise requires: 12 a. “Eligible individual” means, with respect to 13 a tax year, an individual who makes and files an 14 individual income tax return pursuant to section 15 422.13. “Eligible individual” does not include 16 an estate or trust, or an individual for whom an 17 individual income tax return was not timely filed, 18 including extensions. 19 b. “Unclaimed tax credit” means, with respect to 20 a tax year, the aggregate amount by which the Iowa 21 taxpayers trust fund tax credits that were eligible to 22 be claimed by eligible individuals, if any, exceeds the 23 Iowa taxpayers trust fund tax credits actually claimed 24 by eligible individuals, if any. 25 2. The taxes imposed under this division, less the 26 credits allowed under this division except the credits 27 for withheld tax and estimated tax paid in section 28 422.16, shall be reduced by an Iowa taxpayers trust 29 fund tax credit to an eligible individual for the tax 30 year beginning January 1 immediately preceding July 1 31 of any fiscal year during which a transfer, if any, is 32 made from the taxpayers trust fund in section 8.57E to 33 the Iowa taxpayers trust fund tax credit fund created 34 in this section. 35 3. The credit shall be equal to the quotient of 36 the amount transferred to the Iowa taxpayers trust 37 fund tax credit fund in the applicable fiscal year, 38 divided by the number of eligible individuals for the 39 tax year immediately preceding the tax year for which 40 the credit in this section is allowed, as determined 41 by the director of revenue in accordance with this 42 section, rounded down to the nearest whole dollar. The 43 department of revenue shall draft the income tax form 44 for any tax year in which a credit will be allowed 45 under this section to provide the information and space 46 necessary for eligible individuals to claim the credit. 47 4. Any credit in excess of the taxpayer’s liability 48 for the tax year is not refundable and shall not be 49 credited to the tax liability for any following year 50 -3- SF53.22 (3) 85 mm/sc 3/ 7

or carried back to a tax year prior to the tax year in 1 which the taxpayer claims the credit. 2 5. a. There is established within the state 3 treasury under the control of the department an Iowa 4 taxpayers trust fund tax credit fund consisting of any 5 moneys transferred by the general assembly by law from 6 the taxpayers trust fund created in section 8.57E for 7 purposes of the credit provided in this section. For 8 the fiscal year beginning July 1, 2013, and for each 9 fiscal year thereafter, the department shall transfer 10 from the Iowa taxpayers trust fund tax credit fund 11 to the general fund of the state, the lesser of the 12 balance of the Iowa taxpayers trust fund tax credit 13 fund or an amount of money equal to the Iowa taxpayers 14 trust fund tax credits claimed in that fiscal year, if 15 any. Any moneys in the Iowa taxpayers trust fund tax 16 credit fund which represent unclaimed tax credits shall 17 immediately revert to the taxpayers trust fund created 18 in section 8.57E. Interest or earnings on moneys in 19 the Iowa taxpayers trust fund tax credit fund shall be 20 credited to the taxpayers trust fund created in section 21 8.57E. 22 b. The moneys transferred to the general fund of 23 the state in accordance with this subsection shall not 24 be considered new revenues for purposes of the state 25 general fund expenditure limitation under section 8.54 26 but instead as replacement of a like amount included in 27 the expenditure limitation for the fiscal year in which 28 the transfer is made. 29 Sec. 10. Section 422D.2, Code 2013, is amended to 30 read as follows: 31 422D.2 Local income surtax. 32 A county may impose by ordinance a local income 33 surtax as provided in section 422D.1 at the rate set 34 by the board of supervisors, of up to one percent, 35 on the state individual income tax of each individual 36 residing in the county at the end of the individual’s 37 applicable tax year. However, the cumulative total of 38 the percents of income surtax imposed on any taxpayer 39 in the county shall not exceed twenty percent. The 40 reason for imposing the surtax and the amount needed 41 shall be set out in the ordinance. The surtax rate 42 shall be set to raise only the amount needed. For 43 purposes of this section , “state individual income tax” 44 means the tax computed under section 422.5 , less the 45 amounts of nonrefundable credits allowed under chapter 46 422, division II , except for the Iowa taxpayers trust 47 fund tax credit allowed under section 422.11E . 48 Sec. 11. EFFECTIVE UPON ENACTMENT. This division 49 of this Act, being deemed of immediate importance, 50 -4- SF53.22 (3) 85 mm/sc 4/ 7

takes effect upon enactment. 1 Sec. 12. RETROACTIVE APPLICABILITY. This division 2 of this Act applies retroactively to January 1, 2013, 3 for tax years beginning on or after that date. > 4 2. Title page, by striking lines 1 through 5 and 5 inserting < An Act relating to the taxpayers trust fund 6 by modifying the transfer of moneys from the Iowa 7 economic emergency fund to the taxpayers trust fund, 8 allowing transfers from the taxpayers trust fund, 9 creating an Iowa taxpayers trust fund tax credit and 10 fund and providing for the transfer of moneys from the 11 taxpayers trust fund for purposes of the credit, and 12 including effective date and retroactive > 13 3. By renumbering as necessary. 14 ______________________________ RANDY FEENSTRA ______________________________ BILL ANDERSON ______________________________ JONI ERNST ______________________________ MARK CHELGREN ______________________________ RICK BERTRAND ______________________________ BILL DIX ______________________________ CHARLES SCHNEIDER ______________________________ MICHAEL BREITBACH ______________________________ DENNIS GUTH -5- SF53.22 (3) 85 mm/sc 5/ 7 #2. #3.

______________________________ JERRY BEHN ______________________________ DAN ZUMBACH ______________________________ SANDRA H. GREINER ______________________________ MARK SEGEBART ______________________________ DAVID JOHNSON ______________________________ HUBERT HOUSER ______________________________ TIM KAPUCIAN ______________________________ ROBY SMITH ______________________________ NANCY J. BOETTGER ______________________________ JACK WHITVER ______________________________ BRAD ZAUN ______________________________ JAKE CHAPMAN ______________________________ KEN ROZENBOOM -6- SF53.22 (3) 85 mm/sc 6/ 7