House Study Bill 232 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act relating to disaster relief by creating an Iowa 1 disaster relief fund and income tax checkoff, providing 2 an appropriation, and including retroactive applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2040YC (4) 84 tw/sc
H.F. _____ Section 1. NEW SECTION . 217.41A Iowa disaster relief fund. 1 1. An Iowa disaster relief fund is created in the state 2 treasury under the control of the department of human services. 3 The fund shall consist of moneys appropriated or available to 4 and obtained or accepted by the treasurer of state for deposit 5 in the fund including the moneys to be credited to the fund 6 pursuant to section 422.12I or moneys in the form of a devise, 7 gift, bequest, donation, or grant intended to be used for the 8 purposes of the fund. 9 2. Notwithstanding section 12C.7, interest or earnings on 10 moneys in the fund shall be credited to the fund. Section 8.33 11 does not apply to moneys in the fund. 12 3. Moneys in the fund are appropriated to the department 13 of human services for distribution to nonprofit organizations 14 that provide statewide or regional disaster relief services 15 within the state, including but not limited to the provision 16 of food, shelter, and clothing to persons adversely affected 17 by a disaster. 18 Sec. 2. NEW SECTION . 422.12I Income tax checkoff for Iowa 19 disaster relief fund. 20 1. A person who files an individual or a joint income tax 21 return with the department of revenue under section 422.13 may 22 designate one dollar or more to be paid jointly to the Iowa 23 disaster relief fund created in section 217.41A. If the refund 24 due on the return or the payment remitted with the return 25 is insufficient to pay the additional amount designated by 26 the taxpayer, the amount designated shall be reduced to the 27 remaining amount of refund or the remaining amount remitted 28 with the return. The designation of a contribution under this 29 section is irrevocable. 30 2. The director of revenue shall draft the income tax form 31 to allow the designation of contributions to the fund. The 32 department of revenue, on or before January 31, shall transfer 33 the total amount designated on the tax return forms due in 34 the preceding calendar year to the fund. However, before a 35 -1- LSB 2040YC (4) 84 tw/sc 1/ 2
H.F. _____ checkoff pursuant to this section shall be permitted, all 1 liabilities on the books of the department of administrative 2 services and accounts identified as owing under section 8A.504 3 and the political contribution allowed under section 68A.601 4 shall be satisfied. 5 3. The department of revenue shall adopt rules to administer 6 this section. 7 4. This section is subject to repeal under section 422.12E. 8 Sec. 3. APPLICABILITY. This Act applies to tax years 9 beginning on or after January 1, 2012. 10 EXPLANATION 11 This bill relates to an income tax checkoff for disaster 12 relief. 13 The bill creates an Iowa disaster relief fund in the state 14 treasury under the control of the department of human services. 15 The moneys in the fund are appropriated to the department of 16 human services for distribution to nonprofit organizations that 17 provide disaster relief services. Moneys in the fund consist 18 primarily of funds directed by taxpayers through an income tax 19 checkoff. 20 The bill creates an income tax checkoff for purposes of 21 allowing taxpayers to designate that one or more dollars be 22 paid into the disaster relief fund. The director of revenue 23 is directed to draft the income tax forms to allow for such 24 designations. 25 The bill applies to tax years beginning on or after January 26 1, 2012. 27 -2- LSB 2040YC (4) 84 tw/sc 2/ 2