House File 2309 - Introduced HOUSE FILE BY TJEPKES (COMPANION TO LSB 5530SS BY BEALL) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act creating the community foundation fund, providing an Iowa 2 individual income tax checkoff for the community foundation 3 fund, making an appropriation, and providing for the Act's 4 implementation. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5530YH 81 7 bp/sh/8 PAG LIN 1 1 Section 1. NEW SECTION. 15E.312 COMMUNITY FOUNDATION 1 2 FUND. 1 3 1. As used in this section, unless the context otherwise 1 4 requires, "qualified community foundation" means an endow Iowa 1 5 qualified community foundation as defined in section 15E.303. 1 6 2. A community foundation fund is created as a separate 1 7 and distinct fund in the state treasury under the control of 1 8 the department of economic development. 1 9 3. Revenue for the community foundation fund shall include 1 10 but is not limited to the following: 1 11 a. Moneys credited to the fund pursuant to section 1 12 422.12G. 1 13 b. Moneys in the form of a devise, gift, bequest, 1 14 donation, or federal or other grant intended to be used for 1 15 the purposes of the fund. 1 16 4. Moneys in the community foundation fund are not subject 1 17 to section 8.33. Notwithstanding section 12C.7, subsection 2, 1 18 interest or earnings on moneys in the fund shall be credited 1 19 to the fund. 1 20 5. Moneys in the community foundation fund are 1 21 appropriated to the department of economic development to be 1 22 distributed to qualified community foundations. 1 23 6. The department of economic development shall distribute 1 24 moneys from the community foundation fund to qualified 1 25 community foundations in each county in an amount equal to the 1 26 total dollar amount of moneys credited to the community 1 27 foundation fund and designated for the specific qualified 1 28 community foundations as a result of community foundation fund 1 29 income tax return checkoffs executed under section 422.12G. 1 30 7. The department of economic development shall establish 1 31 rules relating to the distribution of nondesignated moneys 1 32 from the community foundation fund. 1 33 Sec. 2. NEW SECTION. 422.12G INCOME TAX CHECKOFF FOR 1 34 COMMUNITY FOUNDATION FUND. 1 35 1. A person who files an individual or a joint income tax 2 1 return with the department of revenue under section 422.13 may 2 2 designate one dollar or more to be credited to the community 2 3 foundation fund created in section 15E.312 and paid to a 2 4 specific qualified community foundation. If the refund due on 2 5 the return or the payment remitted with the return is 2 6 insufficient to pay the additional amount designated by the 2 7 taxpayer to the community foundation fund, the amount 2 8 designated shall be reduced to the remaining amount of the 2 9 refund or the remaining amount remitted with the return. The 2 10 designation of a contribution to the community foundation fund 2 11 under this section is irrevocable. 2 12 2. The director of revenue shall draft the income tax form 2 13 to allow the designation of contributions to the community 2 14 foundation fund on the tax return. The department of revenue, 2 15 on or before January 31, shall transfer the total amount 2 16 designated on the tax return forms due in the preceding 2 17 calendar year to the community foundation fund created in 2 18 section 15E.312. However, before a checkoff pursuant to this 2 19 section shall be permitted, all liabilities on the books of 2 20 the department of revenue and accounts identified as owing 2 21 under section 421.17 and the political contribution allowed 2 22 under section 68A.601 shall be satisfied. 2 23 3. The department of revenue shall adopt rules to 2 24 administer this section. 2 25 4. This section is subject to repeal under section 2 26 422.12E. 2 27 Sec. 3. IMPLEMENTATION. The checkoff created in this Act 2 28 shall be eligible for placement on the individual income tax 2 29 return form beginning for the tax year commencing January 1, 2 30 2007. 2 31 EXPLANATION 2 32 This bill creates the community foundation fund under the 2 33 control of the department of economic development. Moneys in 2 34 the fund are appropriated to the department of economic 2 35 development. 3 1 The bill also creates a community foundation fund income 3 2 tax checkoff. Moneys collected from the checkoff are to be 3 3 credited to the fund and then distributed to qualified 3 4 community foundations as designated by the taxpayer. 3 5 The bill provides that the limitation on the number of 3 6 checkoffs allowed on the Iowa individual income tax return 3 7 does apply to the community foundation fund checkoff. 3 8 LSB 5530YH 81 3 9 bp:rj/sh/8