House File 780 - Introduced HOUSE FILE BY MASCHER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an Iowa individual income tax checkoff for the 2 arts, making an appropriation, and providing for the Act's 3 implementation. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2292HH 81 6 sc/pj/5 PAG LIN 1 1 Section 1. NEW SECTION. 422.12G 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 under section 422.13 may 1 5 designate one dollar or more to be paid to the Iowa arts 1 6 checkoff fund as created in the arts division of the 1 7 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 shall draft the income tax form 1 15 to allow for the designation of contributions to the Iowa arts 1 16 checkoff fund on the tax return. The department of revenue, 1 17 on or before January 31, shall transfer the total amount 1 18 designated on the tax form due in the preceding year to the 1 19 Iowa arts checkoff fund. However, before a checkoff pursuant 1 20 to this section shall be permitted, all liabilities on the 1 21 books of the department of revenue and accounts identified as 1 22 owing under section 421.17 and the political contribution 1 23 allowed under section 68A.601 shall be satisfied. 1 24 3. The department of cultural affairs shall create the 1 25 Iowa arts checkoff fund in the arts division of the 1 26 department. Moneys in the fund are appropriated to the arts 1 27 division of the department for purposes of supporting arts 1 28 division activities and programming. 1 29 4. The department shall adopt rules to administer this 1 30 section. 1 31 5. This section is subject to repeal under section 1 32 422.12E. 1 33 Sec. 2. IMPLEMENTATION. The checkoff created in this Act 1 34 shall be eligible for placement on the individual income tax 1 35 return form beginning for the tax year starting January 1, 2 1 2006. 2 2 EXPLANATION 2 3 This bill provides that taxpayers filing individual income 2 4 tax returns will be allowed to designate $1 or more on the 2 5 return to be paid to the Iowa arts checkoff fund. The bill 2 6 requires the department of revenue to annually remit moneys 2 7 collected from the checkoff to a fund created in the arts 2 8 division of the department of cultural affairs, which moneys 2 9 are appropriated for arts division activities and programming. 2 10 Currently, Code section 422.12E limits to four the number 2 11 of checkoffs that may be placed on an individual income tax 2 12 return form. The Code section further provides that after 2 13 being on the return form for two consecutive years, the two 2 14 checkoffs, for which the lowest amounts have been contributed, 2 15 are repealed. 2 16 The bill provides that the checkoff is eligible for 2 17 placement on the individual income tax return form beginning 2 18 for the tax year starting January 1, 2006. 2 19 LSB 2292HH 81 2 20 sc:rj/pj/5