Print
House File 76 - IntroducedA Bill ForAn Act 1providing for the designation of voluntary income tax
2contributions on the Iowa individual income tax return and
3including retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 422.12N Voluntary income tax
2contribution.
31. A person who files an individual or a joint income tax
4return with the department of revenue under section 422.13
5may designate one dollar or more to be paid as a voluntary
6income tax contribution. If the refund due on the return or
7the payment remitted with the return is insufficient to pay
8the additional amount designated by the taxpayer, the amount
9designated shall be reduced to the remaining amount remitted
10with the return. If a taxpayer also designates an amount to an
11income tax checkoff under section 422.12D, 422.12H, 422.12K,
12or 422.12L, any refund due on the return or payment remitted
13with the return shall be credited to those contributions before
14the voluntary income tax contribution provided in this section.
15The designation of a voluntary income tax contribution under
16this section is irrevocable.
172. The director of revenue shall draft the income tax form
18to allow voluntary income tax contributions on the tax return.
19The voluntary income tax contribution provided in this section
20shall not be considered an income tax return checkoff subject
21to section 422.12E. The income tax form shall be drafted in a
22manner that allows a taxpayer to designate that the voluntary
23income tax contribution, or portions of the voluntary income
24tax contribution, be credited to a maximum of five different
25state funds. The director of revenue and the director of the
26department of management shall jointly adopt rules identifying
27all current state funds and shall revise or update such list
28at least annually, and the director of revenue shall make a
29complete and current list of such state funds available to
30taxpayers in preparing their income tax returns.
313. A voluntary income tax contribution designated and paid
32pursuant to this section shall be an unrestricted charitable
33contribution to the state and shall not be considered an
34estimated tax payment or an overpayment of tax, or otherwise
35credited to any account, charge, fee, loan, tax, or other
-1-1indebtedness of the taxpayer due the state.
24. All contributions collected under this section shall
3be credited to the state fund or funds designated by the
4taxpayer. In the event that no state fund is designated for a
5contribution or a portion of a contribution, such amounts shall
6be credited to the general fund of the state.
75. For purposes of this section, “state fund” means any
8fund or account of the state that meets all of the following
9requirements:
10a. The fund or account is under the control of the general
11assembly.
12b. The fund or account is authorized by law to receive
13moneys.
14c. The receipt of moneys by the fund or account in the
15manner provided in this section would not be in violation of
16any other state or federal law, and would not jeopardize the
17receipt of federal funds to the fund or account.
18 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
19retroactively to January 1, 2019, for tax years beginning on
20or after that date.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill provides for the designation of voluntary
25income tax contributions by taxpayers who file an Iowa
26individual income tax return. The bill requires the director
27of revenue to provide space on the individual income tax
28form for taxpayers to make irrevocable voluntary income tax
29contributions to up to five different state funds of the
30state of Iowa. The director of revenue and the director of
31the department of management are required to jointly adopt
32rules identifying all current state funds, and the director of
33revenue is required to make such list of state funds available
34to taxpayers in preparing their income tax returns. The bill
35defines “state fund”. Amounts collected are credited to the
-2-1state fund or funds designated by the taxpayer or, if no state
2fund is designated, to the general fund of the state.
3If the refund due on the return or the payment remitted with
4the return is insufficient to pay the voluntary income tax
5contribution designated by the taxpayer, the amount designated
6shall be reduced to the remaining amount remitted with the
7return. Additionally, if a taxpayer also designates an amount
8to an income tax checkoff as otherwise provided by law, the
9tax refund or additional payment shall be credited to those
10checkoffs before the voluntary income tax contribution. The
11voluntary income tax contribution shall not be considered an
12income tax checkoff subject to the limitation in Code section
13422.12E, which limits to four the number of income tax return
14checkoffs that can appear on the return, and which provides for
15the automatic repeal of certain checkoffs.
16The bill provides that the voluntary income tax
17contributions are unrestricted charitable contributions to the
18state, and shall not be considered an estimated tax payment,
19overpayment of tax, or credited to any indebtedness of the
20taxpayer due the state.
21The bill applies retroactively to January 1, 2019, for tax
22years beginning on or after that date.
-3-jm/jh
2contributions on the Iowa individual income tax return and
3including retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 422.12N Voluntary income tax
2contribution.
31. A person who files an individual or a joint income tax
4return with the department of revenue under section 422.13
5may designate one dollar or more to be paid as a voluntary
6income tax contribution. If the refund due on the return or
7the payment remitted with the return is insufficient to pay
8the additional amount designated by the taxpayer, the amount
9designated shall be reduced to the remaining amount remitted
10with the return. If a taxpayer also designates an amount to an
11income tax checkoff under section 422.12D, 422.12H, 422.12K,
12or 422.12L, any refund due on the return or payment remitted
13with the return shall be credited to those contributions before
14the voluntary income tax contribution provided in this section.
15The designation of a voluntary income tax contribution under
16this section is irrevocable.
172. The director of revenue shall draft the income tax form
18to allow voluntary income tax contributions on the tax return.
19The voluntary income tax contribution provided in this section
20shall not be considered an income tax return checkoff subject
21to section 422.12E. The income tax form shall be drafted in a
22manner that allows a taxpayer to designate that the voluntary
23income tax contribution, or portions of the voluntary income
24tax contribution, be credited to a maximum of five different
25state funds. The director of revenue and the director of the
26department of management shall jointly adopt rules identifying
27all current state funds and shall revise or update such list
28at least annually, and the director of revenue shall make a
29complete and current list of such state funds available to
30taxpayers in preparing their income tax returns.
313. A voluntary income tax contribution designated and paid
32pursuant to this section shall be an unrestricted charitable
33contribution to the state and shall not be considered an
34estimated tax payment or an overpayment of tax, or otherwise
35credited to any account, charge, fee, loan, tax, or other
-1-1indebtedness of the taxpayer due the state.
24. All contributions collected under this section shall
3be credited to the state fund or funds designated by the
4taxpayer. In the event that no state fund is designated for a
5contribution or a portion of a contribution, such amounts shall
6be credited to the general fund of the state.
75. For purposes of this section, “state fund” means any
8fund or account of the state that meets all of the following
9requirements:
10a. The fund or account is under the control of the general
11assembly.
12b. The fund or account is authorized by law to receive
13moneys.
14c. The receipt of moneys by the fund or account in the
15manner provided in this section would not be in violation of
16any other state or federal law, and would not jeopardize the
17receipt of federal funds to the fund or account.
18 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
19retroactively to January 1, 2019, for tax years beginning on
20or after that date.
21EXPLANATION
22The inclusion of this explanation does not constitute agreement with
23the explanation’s substance by the members of the general assembly.
24This bill provides for the designation of voluntary
25income tax contributions by taxpayers who file an Iowa
26individual income tax return. The bill requires the director
27of revenue to provide space on the individual income tax
28form for taxpayers to make irrevocable voluntary income tax
29contributions to up to five different state funds of the
30state of Iowa. The director of revenue and the director of
31the department of management are required to jointly adopt
32rules identifying all current state funds, and the director of
33revenue is required to make such list of state funds available
34to taxpayers in preparing their income tax returns. The bill
35defines “state fund”. Amounts collected are credited to the
-2-1state fund or funds designated by the taxpayer or, if no state
2fund is designated, to the general fund of the state.
3If the refund due on the return or the payment remitted with
4the return is insufficient to pay the voluntary income tax
5contribution designated by the taxpayer, the amount designated
6shall be reduced to the remaining amount remitted with the
7return. Additionally, if a taxpayer also designates an amount
8to an income tax checkoff as otherwise provided by law, the
9tax refund or additional payment shall be credited to those
10checkoffs before the voluntary income tax contribution. The
11voluntary income tax contribution shall not be considered an
12income tax checkoff subject to the limitation in Code section
13422.12E, which limits to four the number of income tax return
14checkoffs that can appear on the return, and which provides for
15the automatic repeal of certain checkoffs.
16The bill provides that the voluntary income tax
17contributions are unrestricted charitable contributions to the
18state, and shall not be considered an estimated tax payment,
19overpayment of tax, or credited to any indebtedness of the
20taxpayer due the state.
21The bill applies retroactively to January 1, 2019, for tax
22years beginning on or after that date.
-3-jm/jh