Senate File 2183 - Introduced SENATE FILE 2183 BY SINCLAIR and DICKEY A BILL FOR An Act providing for the Iowa individual income tax checkoff 1 for public schools and the public school checkoff fund, 2 making appropriations, and providing for implementation of 3 the checkoff on the return. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6045XS (5) 91 jm/jh

S.F. 2183 Section 1. NEW SECTION . 257.52 Public school checkoff fund 1 —— appropriation. 2 1. A public school fund is created in the state treasury 3 under the control of the department of management. The fund is 4 composed of moneys appropriated or available to and obtained 5 or accepted by the treasurer of state for deposit in the fund. 6 The fund shall include moneys transferred to the fund pursuant 7 to an income tax checkoff provided in chapter 422, subchapter 8 II, if applicable. Notwithstanding section 12C.7, subsection 9 2, interest earned on moneys in the fund shall be credited to 10 and remain in the fund. Section 8.33 does not apply to moneys 11 in the fund. 12 2. There is appropriated from the fund to the department 13 of management for the fiscal year beginning July 1, 2027, and 14 for each fiscal year thereafter, any moneys available in the 15 fund to make the payments to school districts required under 16 subsection 3. 17 3. The moneys appropriated to the department of management 18 under this section shall be used to provide a funding 19 supplement to each school district for the fiscal year 20 beginning July 1, 2027, and for each fiscal year thereafter. 21 The moneys available in a fiscal year in the fund shall be 22 distributed by the department of management to each school 23 district on a per pupil basis calculated using each school 24 district’s budget enrollment, as defined in section 257.6, for 25 that fiscal year. 26 4. The moneys received by a school district shall be 27 miscellaneous income, shall be deposited in the general fund of 28 the school district, may be used for any school general fund 29 purpose during any school budget year beginning on or after 30 July 1, 2027, and shall not be included in district cost. 31 Sec. 2. NEW SECTION . 422.12M Income tax checkoff for public 32 schools 33 1. A person who files an individual or a joint income tax 34 return with the department of revenue under section 422.13 35 -1- LSB 6045XS (5) 91 jm/jh 1/ 3

S.F. 2183 may designate one dollar or more to be paid to public schools 1 to be distributed pursuant to section 257.52. If the refund 2 due on the return or the payment remitted with the return is 3 insufficient to pay the additional amount designated by the 4 taxpayer to the public schools, the amount designated shall 5 be reduced to the remaining amount remitted with the return. 6 The designation of a contribution to public schools under this 7 section is irrevocable. 8 2. The director of revenue shall draft the income tax form 9 to allow the designation of contributions to public schools 10 on the tax return. The department of revenue, on or before 11 January 31, shall transfer the total amount designated on the 12 tax return forms due in the preceding calendar year to the 13 public school checkoff fund as provided in section 257.52. 14 However, before a checkoff pursuant to this section shall be 15 permitted, all liabilities on the books of the department and 16 accounts identified as owing under section 421.65 shall be 17 satisfied. 18 3. The department of revenue shall adopt rules to administer 19 this section. 20 4. This section is subject to repeal under section 422.12E. 21 Sec. 3. IMPLEMENTATION. The checkoff created in this Act 22 shall be eligible for placement on the individual income tax 23 return form for the tax year beginning January 1, 2026. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill provides that taxpayers filing individual income 28 tax returns will be allowed to designate $1 or more on the 29 return to be paid to the public school checkoff fund. The bill 30 creates the public school checkoff fund in the state treasury 31 under the control of the department of management (DOM). The 32 bill requires the department of revenue to annually remit 33 moneys collected from the checkoff to the fund. For the fiscal 34 year beginning July 1, 2027, and each fiscal year thereafter, 35 -2- LSB 6045XS (5) 91 jm/jh 2/ 3

S.F. 2183 moneys available in the fund are appropriated to DOM to be 1 used to provide a funding supplement to each school district 2 during the fiscal year. The moneys shall be distributed by DOM 3 to each school district on a per pupil basis calculated using 4 each school district’s budget enrollment as defined in Code 5 section 257.6. The moneys received by a school district from 6 the checkoff shall be considered miscellaneous income and may 7 be used for any general fund purpose and shall not be included 8 in district cost. 9 The bill provides that the checkoff is eligible for 10 placement on the individual tax return form for the tax year 11 beginning January 1, 2026, and that it is subject to repeal 12 under Code section 422.12E, which allows no more than four 13 checkoffs on the individual tax return form and provides for 14 the automatic repeal of the two checkoffs receiving the least 15 in contributions over a two-year period. Currently, there are 16 two checkoffs that appear on the individual income tax return: 17 the checkoff for the fish and game protection fund and the 18 checkoff for the child abuse prevention program fund. 19 -3- LSB 6045XS (5) 91 jm/jh 3/ 3