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