Senate Study Bill 1300





                                  SENATE FILE       
                                  BY  (PROPOSED COMMITTEE ON
                                       WAYS AND MEANS BILL
                                       BY CO=CHAIRPERSON ZIEMAN)



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

                                      A BILL FOR

  1 An Act creating a military family relief fund and providing an
  2    income tax checkoff for deposit in the fund, 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 2917XC 81
  6 sc/pj/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  29.5  MILITARY FAMILY RELIEF
  1  2 FUND.
  1  3    1.  A military family relief fund is created as a separate
  1  4 and distinct fund in the state treasury under the control of
  1  5 the department of public defense.
  1  6    2.  Revenue for the military family relief fund shall
  1  7 include, but is not limited to, the following:
  1  8    a.  Moneys credited to the fund pursuant to section
  1  9 422.12G.
  1 10    b.  Moneys in the form of a devise, gift, bequest,
  1 11 donation, or federal or other grant intended to be used for
  1 12 the purposes of the fund.
  1 13    3.  Moneys in the military family relief fund are not
  1 14 subject to section 8.33.  Notwithstanding section 12C.7,
  1 15 subsection 2, interest or earnings on moneys in the fund shall
  1 16 be credited to the fund.
  1 17    4.  Moneys in the military family relief fund are
  1 18 appropriated to the department of public defense to be used to
  1 19 make grants to families of persons who are members of the Iowa
  1 20 national guard or Iowa residents who are members of the
  1 21 reserve forces of the armed forces of the United States and
  1 22 who have been called to active duty as a result of the
  1 23 September 11, 2001, terrorist attacks.
  1 24    5.  The department of public defense shall establish
  1 25 eligibility criteria for the grants by rule.
  1 26    Sec. 2.  Section 422.12E, unnumbered paragraph 1, Code
  1 27 2005, is amended to read as follows:
  1 28    For tax years beginning on or after January 1, 2004, there
  1 29 shall be allowed no more than four income tax return checkoffs
  1 30 on each income tax return.  When the same four income tax
  1 31 return checkoffs have been provided on the income tax return
  1 32 for two consecutive years, the two checkoffs for which the
  1 33 least amount has been contributed, in the aggregate for the
  1 34 first tax year and through March 15 of the second tax year,
  1 35 are repealed.  This section does not apply to the income tax
  2  1 return checkoff checkoffs provided in section sections 68A.601
  2  2 and 422.12G.
  2  3    Sec. 3.  NEW SECTION.  422.12G  INCOME TAX CHECKOFF FOR
  2  4 MILITARY FAMILY RELIEF FUND.
  2  5    1.  For the tax year beginning January 1, 2005, a person
  2  6 who files an individual or a joint income tax return with the
  2  7 department of revenue under section 422.13 may designate one
  2  8 dollar or more to be paid to the military family relief fund
  2  9 as created in section 29.5.  If the refund due on the return
  2 10 or the payment remitted with the return is insufficient to pay
  2 11 the additional amount designated by the taxpayer to the
  2 12 military family relief fund, the amount designated shall be
  2 13 reduced to the remaining amount of refund or the remaining
  2 14 amount remitted with the return.  The designation of a
  2 15 contribution to the military family relief fund under this
  2 16 section is irrevocable.
  2 17    2.  The director of revenue shall draft the income tax form
  2 18 to allow the designation of contributions to the military
  2 19 family relief fund on the tax return.  The department of
  2 20 revenue, on or before January 31, shall certify the total
  2 21 amount designated on the tax return forms due in the preceding
  2 22 calendar year and shall report the amount to the treasurer of
  2 23 state.  The treasurer of state shall credit the amount to the
  2 24 military family relief fund.  However, before a checkoff
  2 25 pursuant to this section shall be permitted, all liabilities
  2 26 on the books of the department of revenue and accounts
  2 27 identified as owing under section 421.17 and the political
  2 28 contribution allowed under section 68A.601 shall be satisfied.
  2 29    3.  The department of revenue shall adopt rules to
  2 30 administer this section.
  2 31    4.  The limitation on income tax return checkoffs specified
  2 32 in section 422.12E does not apply to this checkoff.
  2 33    Sec. 4.  RETROACTIVE APPLICABILITY.  Sections 2 and 3 of
  2 34 this Act apply retroactively to January 1, 2005, for tax years
  2 35 beginning on or after that date and the military family relief
  3  1 fund checkoff shall be eligible for placement on the
  3  2 individual income tax return form for tax years beginning on
  3  3 or after January 1, 2005.
  3  4                           EXPLANATION
  3  5    This bill creates the military family relief fund under the
  3  6 control of the department of public defense.  Moneys in the
  3  7 fund are appropriated to the department of public defense.
  3  8 Moneys in the fund are to be used to make grants to families
  3  9 of persons who are members of the Iowa national guard or
  3 10 residents who are members of the army reserves and who have
  3 11 been called to active duty as a result of the September 11,
  3 12 2001, attacks.
  3 13    The bill also creates a military family relief fund income
  3 14 tax checkoff.  Moneys collected from the checkoff are to be
  3 15 credited to the fund.
  3 16    The bill also provides that the limitation on the number of
  3 17 checkoffs allowed on the Iowa individual income tax return
  3 18 does not apply to the military family relief fund checkoff.
  3 19    The provisions of the bill relating to the military family
  3 20 relief fund checkoff apply retroactively to the tax year
  3 21 beginning January 1, 2005.
  3 22 LSB 2917XC 81
  3 23 sc:rj/pj/5