Senate File 111

                                       SENATE FILE       
                                       BY  CONNOLLY


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to funding for the arts by providing an Iowa
  2    individual income tax checkoff for the arts, making an
  3    appropriation, and providing a retroactive applicability date.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 2175SS 80
  6 sc/pj/5

PAG LIN

  1  1    Section 1.  NEW SECTION.  422.12F  INCOME TAX CHECKOFF FOR
  1  2 THE ARTS.
  1  3    1.  A person who files an individual or a joint income tax
  1  4 return with the department of revenue and finance under
  1  5 section 422.13 may designate one dollar or more to be paid to
  1  6 the Iowa arts checkoff fund as created in the arts division of
  1  7 the department of cultural affairs.  If the refund due on the
  1  8 return or the payment remitted with the return is insufficient
  1  9 to pay the amount designated by the taxpayer to the Iowa arts
  1 10 checkoff fund, the amount designated shall be reduced to the
  1 11 remaining amount of the refund or the remaining amount
  1 12 remitted with the return.  The designation of a contribution
  1 13 to the Iowa arts checkoff fund is irrevocable.
  1 14    2.  The director of revenue and finance shall draft the
  1 15 income tax form to allow for the designation of contributions
  1 16 to the Iowa arts checkoff fund on the tax return.  The
  1 17 department of revenue and finance, on or before January 31,
  1 18 shall transfer the total amount designated on the tax form due
  1 19 in the preceding year to the Iowa arts checkoff fund.
  1 20 However, before a checkoff pursuant to this section shall be
  1 21 permitted, all liabilities on the books of the department of
  1 22 revenue and finance and accounts identified as owing under
  1 23 section 421.17 and the political contribution allowed under
  1 24 section 56.18 shall be satisfied.
  1 25    3.  The department of cultural affairs shall create the
  1 26 Iowa arts checkoff fund in the arts division of the
  1 27 department.  Moneys in the fund are appropriated to the arts
  1 28 division of the department for purposes of supporting arts
  1 29 division activities and programming.
  1 30    4.  The department shall adopt rules to administer this
  1 31 section.
  1 32    5.  The limitation on income tax return checkoffs specified
  1 33 in section 422.12E does not apply to this checkoff.
  1 34    Sec. 2.  Section 422.12E, Code 2003, is amended to read as
  1 35 follows:
  2  1    422.12E  INCOME TAX RETURN CHECKOFFS LIMITED.
  2  2    For tax years beginning on or after January 1, 1995, there
  2  3 shall be allowed no more than three income tax return
  2  4 checkoffs on each income tax return.  When the same three
  2  5 income tax return checkoffs have been provided on the income
  2  6 tax return for three consecutive years, the checkoff for which
  2  7 the least amount has been contributed, in the aggregate for
  2  8 the first two tax years and through March 15 of the third tax
  2  9 year, shall be is repealed.  This section does not apply to
  2 10 the income tax return checkoff checkoffs provided in section
  2 11 sections 56.18 and 422.12F.
  2 12    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
  2 13 retroactively to January 1, 2003, for tax years beginning on
  2 14 or after that date and the checkoff shall be eligible for
  2 15 placement on the individual income tax return form for the tax
  2 16 year beginning January 1, 2003.
  2 17                           EXPLANATION
  2 18    This bill allows taxpayers filing individual income tax
  2 19 returns to designate $1 or more on the return to be paid to
  2 20 the Iowa arts checkoff fund.  The bill requires the department
  2 21 of revenue and finance to annually remit moneys collected from
  2 22 the checkoff to a fund created in the arts division of the
  2 23 department of cultural affairs, which moneys are appropriated
  2 24 for arts division activities and programming.
  2 25    The bill also provides that the limitation on the number of
  2 26 checkoffs allowed on the Iowa individual income tax return
  2 27 does not apply to the arts checkoff.
  2 28    The bill applies retroactively to January 1, 2003, for tax
  2 29 years beginning on or after that date.
  2 30 LSB 2175SS 80
  2 31 sc/pj/5