House File 2683 - Introduced HOUSE FILE BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 2309) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to certain Iowa individual income tax checkoffs 2 involving community development and fire fighter preparedness, 3 making appropriations, and providing for the Act's retroactive 4 applicability. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5530HV 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: 1 5 a. "Community affiliate organization" means a community 1 6 affiliate organization as defined in section 15E.303. 1 7 b. "Qualified community foundation" means an endow Iowa 1 8 qualified community foundation as defined in section 15E.303. 1 9 2. A community foundation fund is created as a separate 1 10 and distinct fund in the state treasury under the control of 1 11 the department of economic development. 1 12 3. Revenue for the community foundation fund shall include 1 13 but is not limited to the following: 1 14 a. Moneys credited to the fund pursuant to section 1 15 422.12G. 1 16 b. Moneys in the form of a devise, gift, bequest, 1 17 donation, or federal or other grant intended to be used for 1 18 the purposes of the fund. 1 19 4. Moneys in the community foundation fund are not subject 1 20 to section 8.33. Notwithstanding section 12C.7, subsection 2, 1 21 interest or earnings on moneys in the fund shall be credited 1 22 to the fund. 1 23 5. Moneys in the community foundation fund are 1 24 appropriated to the department of economic development to be 1 25 distributed to community affiliate organizations or qualified 1 26 community foundations. 1 27 6. The department of economic development shall distribute 1 28 moneys from the community foundation fund to community 1 29 affiliate organizations or qualified community foundations in 1 30 each county in an amount equal to the total dollar amount of 1 31 moneys credited to the community foundation fund and 1 32 designated for the specific community affiliate organizations 1 33 or qualified community foundations as a result of community 1 34 foundation fund income tax return checkoffs executed under 1 35 section 422.12G. 2 1 7. The department of economic development shall establish 2 2 rules relating to the distribution of nondesignated moneys 2 3 from the community foundation fund. 2 4 Sec. 2. Section 100B.13, Code Supplement 2005, is 2 5 reenacted to read as follows: 2 6 100B.13 VOLUNTEER FIRE FIGHTER PREPAREDNESS FUND. 2 7 1. A volunteer fire fighter preparedness fund is created 2 8 as a separate and distinct fund in the state treasury under 2 9 the control of the division of state fire marshal of the 2 10 department of public safety. 2 11 2. Revenue for the volunteer fire fighter preparedness 2 12 fund shall include but is not limited to the following: 2 13 a. Moneys credited to the fund pursuant to section 2 14 422.12F. 2 15 b. Moneys in the form of a devise, gift, bequest, 2 16 donation, or federal or other grant intended to be used for 2 17 the purposes of the fund. 2 18 3. Moneys in the volunteer fire fighter preparedness fund 2 19 are not subject to section 8.33. Notwithstanding section 2 20 12C.7, subsection 2, interest or earnings on moneys in the 2 21 fund shall be credited to the fund. 2 22 4. Moneys in the volunteer fire fighter preparedness fund 2 23 are appropriated to the division of state fire marshal of the 2 24 department of public safety to be used annually to pay the 2 25 costs of providing volunteer fire fighter training around the 2 26 state and to pay the costs of providing volunteer fire 2 27 fighting equipment. 2 28 Sec. 3. Section 422.12F, Code 2005, is reenacted to read 2 29 as follows: 2 30 422.12F INCOME TAX CHECKOFF FOR VOLUNTEER FIRE FIGHTER 2 31 PREPAREDNESS. 2 32 1. A person who files an individual or a joint income tax 2 33 return with the department of revenue under section 422.13 may 2 34 designate one dollar or more to be paid to the volunteer fire 2 35 fighter preparedness fund as created in section 100B.13. If 3 1 the refund due on the return or the payment remitted with the 3 2 return is insufficient to pay the additional amount designated 3 3 by the taxpayer to the volunteer fire fighter preparedness 3 4 fund, the amount designated shall be reduced to the remaining 3 5 amount of the refund or the remaining amount remitted with the 3 6 return. The designation of a contribution to the volunteer 3 7 fire fighter preparedness fund under this section is 3 8 irrevocable. 3 9 2. The director of revenue shall draft the income tax form 3 10 to allow the designation of contributions to the volunteer 3 11 fire fighter preparedness fund on the tax return. The 3 12 department of revenue, on or before January 31, shall certify 3 13 the total amount designated on the tax return forms due in the 3 14 preceding calendar year and shall report the amount to the 3 15 treasurer of state. The treasurer of state shall credit the 3 16 amount to the volunteer fire fighter preparedness fund. 3 17 However, before a checkoff pursuant to this section shall be 3 18 permitted, all liabilities on the books of the department of 3 19 revenue and accounts identified as owing under section 421.17 3 20 and the political contribution allowed under section 68A.601 3 21 shall be satisfied. 3 22 3. The department of revenue shall adopt rules to 3 23 administer this section. 3 24 4. This section is subject to repeal under section 3 25 422.12E. 3 26 Sec. 4. NEW SECTION. 422.12G INCOME TAX CHECKOFF FOR 3 27 COMMUNITY FOUNDATION FUND. 3 28 1. A person who files an individual or a joint income tax 3 29 return with the department of revenue under section 422.13 may 3 30 designate one dollar or more to be credited to the community 3 31 foundation fund created in section 15E.312 and paid to a 3 32 specific community affiliate organization or qualified 3 33 community foundation. If the refund due on the return or the 3 34 payment remitted with the return is insufficient to pay the 3 35 additional amount designated by the taxpayer to the community 4 1 foundation fund, the amount designated shall be reduced to the 4 2 remaining amount of the refund or the remaining amount 4 3 remitted with the return. The designation of a contribution 4 4 to the community foundation fund under this section is 4 5 irrevocable. 4 6 2. The director of revenue shall draft the income tax form 4 7 to allow the designation of contributions to the community 4 8 foundation fund on the tax return. The department of revenue, 4 9 on or before January 31, shall transfer the total amount 4 10 designated on the tax return forms due in the preceding 4 11 calendar year to the community foundation fund created in 4 12 section 15E.312. However, before a checkoff pursuant to this 4 13 section shall be permitted, all liabilities on the books of 4 14 the department of revenue and accounts identified as owing 4 15 under section 421.17 and the political contribution allowed 4 16 under section 68A.601 shall be satisfied. 4 17 3. The department of revenue shall adopt rules to 4 18 administer this section. 4 19 4. This section is subject to repeal under section 4 20 422.12E. 4 21 Sec. 5. IMPLEMENTATION. The checkoff created in this Act 4 22 shall be eligible for placement on the individual income tax 4 23 return form beginning for the tax year commencing January 1, 4 24 2006. 4 25 Sec. 6. RETROACTIVE APPLICABILITY. The sections of this 4 26 Act enacting section 15E.312 and 422.12G and reenacting 4 27 section 422.12F apply retroactively to the tax year commencing 4 28 January 1, 2006. 4 29 EXPLANATION 4 30 This bill creates the community foundation fund under the 4 31 control of the department of economic development. Moneys in 4 32 the fund are appropriated to the department of economic 4 33 development. 4 34 The bill also creates a community foundation fund income 4 35 tax checkoff. Moneys collected from the checkoff are to be 5 1 credited to the fund and then distributed to community 5 2 affiliate organizations or qualified community foundations. 5 3 Moneys in the fund are distributed to community affiliate 5 4 organizations or qualified community foundations as designated 5 5 by taxpayers as a result of community foundation fund 5 6 checkoffs. 5 7 The bill provides that the limitation on the number of 5 8 checkoffs allowed on the Iowa individual income tax return 5 9 does apply to the community foundation fund checkoff. 5 10 The bill also reenacts the volunteer fire fighter 5 11 preparedness income tax checkoff which is currently subject to 5 12 automatic repeal under Code section 422.12E. The bill 5 13 provides that taxpayers filing individual income tax returns 5 14 will be allowed to designate $1 or more on the return to be 5 15 paid to the volunteer fire fighter preparedness fund. The 5 16 bill requires the department of revenue to annually remit 5 17 moneys collected from the checkoff to the volunteer fire 5 18 fighter preparedness fund created in the office of the 5 19 treasurer of state. Moneys in the fund are appropriated to 5 20 the division of state fire marshal of the department of public 5 21 safety to be used annually to pay the costs of providing 5 22 volunteer fire fighter training in the state and to pay the 5 23 costs of providing volunteer fire fighter equipment. The bill 5 24 provides that the volunteer fire fighter preparedness checkoff 5 25 is subject to the limitation of the number of checkoffs 5 26 allowed on the Iowa individual income tax return and, for that 5 27 reason, is subject to future repeal. 5 28 The bill provides that the Code sections of the bill 5 29 enacting the community foundation fund and the community 5 30 foundation fund checkoff apply retroactively to the tax year 5 31 commencing January 1, 2006. The bill also provides that the 5 32 Code section of the bill reenacting the fire fighter 5 33 preparedness checkoff applies retroactively to the tax year 5 34 commencing January 1, 2006. 5 35 LSB 5530HV 81 6 1 bp:rj/sh/8