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Senate File 635 - IntroducedA Bill ForAn Act 1reestablishing individual income tax checkoffs for the
2Iowa state fair foundation fund and the joint income tax
3checkoff for the veterans trust fund and the volunteer fire
4fighter preparedness fund.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 173.22, subsection 2, Code 2019, is
2amended to read as follows:
32. A foundation fund is created within the state treasury
4composed of moneys appropriated or available to and obtained or
5accepted by the foundation. The foundation fund shall include
6moneys credited to the fund as provided in section 422.12D
7 422.12I.
8 Sec. 2. Section 422.12E, Code 2019, is amended to read as
9follows:
10422.12E Income tax return checkoffs limited.
111. For tax years beginning on or after January 1, 2019,
12there There shall be allowed no more than four income tax
13return checkoffs on each income tax return. For tax years
14beginning on or after January 1,2017, when the same four income
15tax return checkoffs have been provided on the income tax
16return for two consecutive tax years, the two checkoffs for
17which the least amount has been contributed, in the aggregate
18for the first tax year and through March 15 after the end of the
19second tax year, are repealed on December 31 after the end of
20the second tax year and shall be removed from the return form.
212. If more checkoffs are enacted in the same session of
22the general assembly than there is space for inclusion on the
23individual tax return form, the checkoffs with the earliest
24enacted checkoffs date of enactment as determined pursuant
25to section 3.7 for which there is space for inclusion on the
26return form shall be included on the return form, and all other
27checkoffs enacted during that session of the general assembly
28are repealed on December 31 of the year of enactment. If
29more checkoffs are enacted in the same session of the general
30assembly than there is space for inclusion on the individual
31income tax form and the additional checkoffs are enacted on
32the same day and it is indeterminable which checkoffs have
33the earliest date of enactment pursuant to section 3.7, the
34director shall determine which checkoffs shall be included on
35the return form, and all other checkoffs not included on the
-1-1return form shall be repealed on December 31 of the year of
2enactment and shall not be included on the return form.
33. a. By July 1 of the year in which two checkoffs are
4repealed pursuant to subsection 1, the department shall notify
5the Iowa Code editor which two checkoffs received the least
6amount of contributions and are repealed.
7b. By September 1 of any applicable year, the department
8shall notify the Iowa Code editor of any repeal pursuant to
9subsection 2.
10 Sec. 3. NEW SECTION. 422.12G Joint income tax checkoff for
11veterans trust fund and volunteer fire fighter preparedness fund.
121. A person who files an individual or a joint income tax
13return with the department of revenue under section 422.13 may
14designate one dollar or more to be paid jointly to the veterans
15trust fund created in section 35A.13 and to the volunteer fire
16fighter preparedness fund created in section 100B.13. If the
17refund due on the return or the payment remitted with the
18return is insufficient to pay the additional amount designated
19by the taxpayer, the amount designated shall be reduced to the
20remaining amount of refund or the remaining amount remitted
21with the return. The designation of a contribution under this
22section is irrevocable.
232. The director of revenue shall draft the income tax form
24to allow the designation of contributions to the veterans trust
25fund and to the volunteer fire fighter preparedness fund as
26one checkoff on the tax return. The department of revenue,
27on or before January 31, shall transfer one-half of the total
28amount designated on the tax return forms due in the preceding
29calendar year to the veterans trust fund and the remaining
30one-half to the volunteer fire fighter preparedness fund.
31However, before a checkoff pursuant to this section shall be
32permitted, all liabilities on the books of the department of
33administrative services and accounts identified as owing under
34section 8A.504 shall be satisfied.
353. The department of revenue shall adopt rules to administer
-2-1this section.
24. This section is subject to repeal under section 422.12E.
3 Sec. 4. Section 422.12H, Code 2019, is amended to read as
4follows:
5422.12H Income tax checkoff for fish and game protection
6fund.
71. A person who files an individual or a joint income tax
8return with the department of revenue under section 422.13 may
9designate a contribution to the state fish and game protection
10fund authorized pursuant to section 456A.16.
112. This section is subject to repeal under section 422.12E.
12 Sec. 5. NEW SECTION. 422.12I Income tax checkoff for the
13Iowa state fair foundation fund.
141. A person who files an individual or a joint income tax
15return with the department of revenue under section 422.13
16may designate one dollar or more to be paid to the foundation
17fund of the Iowa state fair foundation as established in
18section 173.22. If the refund due on the return or the payment
19remitted with the return is insufficient to pay the amount
20designated by the taxpayer to the foundation fund, the amount
21designated shall be reduced to the remaining amount of the
22refund or the remaining amount remitted with the return. The
23designation of a contribution to the foundation fund under this
24section is irrevocable.
252. The director of revenue shall draft the income tax form
26to allow the designation of contributions to the foundation
27fund on the tax return. The department, on or before January
2831, shall transfer the total amount designated on the tax
29form due in the preceding year to the foundation fund.
30However, before a checkoff pursuant to this section shall be
31permitted, all liabilities on the books of the department of
32administrative services and accounts identified as owing under
33section 8A.504 shall be satisfied.
343. The Iowa state fair board may authorize payment from
35the foundation fund for purposes of supporting foundation
-3-1activities.
24. The department of revenue shall adopt rules to implement
3this section.
45. This section is subject to repeal under section 422.12E.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill reestablishes the individual income tax checkoff
9for the Iowa state fair foundation fund and the joint income
10tax checkoff for the veterans trust fund and the volunteer fire
11fighter preparedness fund.
12A checkoff allows a taxpayer who files an individual or
13a joint income tax return with the department of revenue
14to designate a dollar amount to be paid to a specific fund
15included on the individual income tax form.
16Currently, the following four checkoffs are included on
17the individual income tax return form: the Iowa state fair
18foundation fund, the fish and game protection fund, the
19child abuse prevention program fund, and the joint income tax
20checkoff for the veterans trust fund and the volunteer fire
21fighter preparedness fund.
22Under Code section 422.12E(1), for tax years beginning on
23or after January 1, 2017, when the same four income tax return
24checkoffs have been provided on the individual income tax
25return for two consecutive years, the two checkoffs for which
26the least amount has been contributed, in the aggregate for the
27first tax year and through March 15 of the second tax year, are
28repealed. The Iowa state fair foundation fund checkoff and the
29joint income tax checkoff for the veterans trust fund and the
30volunteer fire fighter preparedness fund received the least
31amount contributed in the aggregate for the previous tax year
32and through March 15 of this tax year, and therefore have been
33repealed by operation of law.
34The bill reestablishes the Iowa state fair foundation
35checkoff and the joint income tax checkoff for the veterans
-4-1trust fund and the volunteer fire fighter preparedness fund for
2inclusion on the 2019 and 2020 individual income tax return
3forms, after which the checkoffs will again be subject to
4repeal pursuant to Code section 422.12E(1), if the checkoffs
5have the least amount of contributions in comparison to the
6other two checkoffs.
7The bill specifies that if a checkoff is repealed by
8operation of law pursuant to Code section 422.12E, the date of
9the repeal is December 31 after the end of the second tax year.
10For purposes of publishing the Code, the bill requires the
11department of revenue to notify the Iowa Code editor which two
12checkoffs received the least amount of contributions during the
13applicable year, and thereby are repealed by operation of law.
14The bill also requires the department of revenue to notify the
15Iowa Code editor when more checkoffs are enacted than there is
16space for inclusion on the individual income tax return form,
17and thereby are repealed by operation of law as well.
18The amendment to Code section 422.12H relating to the fish
19and game protection gaming fund specifies that the income tax
20checkoff for the fish and game protection fund is subject to
21repeal under Code section 422.12E just as the other checkoffs
22are subject to repeal, if the fund is one of two checkoffs
23receiving the least amount of contributions over a two-year
24period.
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2Iowa state fair foundation fund and the joint income tax
3checkoff for the veterans trust fund and the volunteer fire
4fighter preparedness fund.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 173.22, subsection 2, Code 2019, is
2amended to read as follows:
32. A foundation fund is created within the state treasury
4composed of moneys appropriated or available to and obtained or
5accepted by the foundation. The foundation fund shall include
6moneys credited to the fund as provided in section 422.12D
7 422.12I.
8 Sec. 2. Section 422.12E, Code 2019, is amended to read as
9follows:
10422.12E Income tax return checkoffs limited.
111. For tax years beginning on or after January 1, 2019,
12there There shall be allowed no more than four income tax
13return checkoffs on each income tax return. For tax years
14beginning on or after January 1,2017, when the same four income
15tax return checkoffs have been provided on the income tax
16return for two consecutive tax years, the two checkoffs for
17which the least amount has been contributed, in the aggregate
18for the first tax year and through March 15 after the end of the
19second tax year, are repealed on December 31 after the end of
20the second tax year and shall be removed from the return form.
212. If more checkoffs are enacted in the same session of
22the general assembly than there is space for inclusion on the
23individual tax return form, the checkoffs with the earliest
24enacted checkoffs date of enactment as determined pursuant
25to section 3.7 for which there is space for inclusion on the
26return form shall be included on the return form, and all other
27checkoffs enacted during that session of the general assembly
28are repealed on December 31 of the year of enactment. If
29more checkoffs are enacted in the same session of the general
30assembly than there is space for inclusion on the individual
31income tax form and the additional checkoffs are enacted on
32the same day and it is indeterminable which checkoffs have
33the earliest date of enactment pursuant to section 3.7, the
34director shall determine which checkoffs shall be included on
35the return form, and all other checkoffs not included on the
-1-1return form shall be repealed on December 31 of the year of
2enactment and shall not be included on the return form.
33. a. By July 1 of the year in which two checkoffs are
4repealed pursuant to subsection 1, the department shall notify
5the Iowa Code editor which two checkoffs received the least
6amount of contributions and are repealed.
7b. By September 1 of any applicable year, the department
8shall notify the Iowa Code editor of any repeal pursuant to
9subsection 2.
10 Sec. 3. NEW SECTION. 422.12G Joint income tax checkoff for
11veterans trust fund and volunteer fire fighter preparedness fund.
121. A person who files an individual or a joint income tax
13return with the department of revenue under section 422.13 may
14designate one dollar or more to be paid jointly to the veterans
15trust fund created in section 35A.13 and to the volunteer fire
16fighter preparedness fund created in section 100B.13. If the
17refund due on the return or the payment remitted with the
18return is insufficient to pay the additional amount designated
19by the taxpayer, the amount designated shall be reduced to the
20remaining amount of refund or the remaining amount remitted
21with the return. The designation of a contribution under this
22section is irrevocable.
232. The director of revenue shall draft the income tax form
24to allow the designation of contributions to the veterans trust
25fund and to the volunteer fire fighter preparedness fund as
26one checkoff on the tax return. The department of revenue,
27on or before January 31, shall transfer one-half of the total
28amount designated on the tax return forms due in the preceding
29calendar year to the veterans trust fund and the remaining
30one-half to the volunteer fire fighter preparedness fund.
31However, before a checkoff pursuant to this section shall be
32permitted, all liabilities on the books of the department of
33administrative services and accounts identified as owing under
34section 8A.504 shall be satisfied.
353. The department of revenue shall adopt rules to administer
-2-1this section.
24. This section is subject to repeal under section 422.12E.
3 Sec. 4. Section 422.12H, Code 2019, is amended to read as
4follows:
5422.12H Income tax checkoff for fish and game protection
6fund.
71. A person who files an individual or a joint income tax
8return with the department of revenue under section 422.13 may
9designate a contribution to the state fish and game protection
10fund authorized pursuant to section 456A.16.
112. This section is subject to repeal under section 422.12E.
12 Sec. 5. NEW SECTION. 422.12I Income tax checkoff for the
13Iowa state fair foundation fund.
141. A person who files an individual or a joint income tax
15return with the department of revenue under section 422.13
16may designate one dollar or more to be paid to the foundation
17fund of the Iowa state fair foundation as established in
18section 173.22. If the refund due on the return or the payment
19remitted with the return is insufficient to pay the amount
20designated by the taxpayer to the foundation fund, the amount
21designated shall be reduced to the remaining amount of the
22refund or the remaining amount remitted with the return. The
23designation of a contribution to the foundation fund under this
24section is irrevocable.
252. The director of revenue shall draft the income tax form
26to allow the designation of contributions to the foundation
27fund on the tax return. The department, on or before January
2831, shall transfer the total amount designated on the tax
29form due in the preceding year to the foundation fund.
30However, before a checkoff pursuant to this section shall be
31permitted, all liabilities on the books of the department of
32administrative services and accounts identified as owing under
33section 8A.504 shall be satisfied.
343. The Iowa state fair board may authorize payment from
35the foundation fund for purposes of supporting foundation
-3-1activities.
24. The department of revenue shall adopt rules to implement
3this section.
45. This section is subject to repeal under section 422.12E.
5EXPLANATION
6The inclusion of this explanation does not constitute agreement with
7the explanation’s substance by the members of the general assembly.
8This bill reestablishes the individual income tax checkoff
9for the Iowa state fair foundation fund and the joint income
10tax checkoff for the veterans trust fund and the volunteer fire
11fighter preparedness fund.
12A checkoff allows a taxpayer who files an individual or
13a joint income tax return with the department of revenue
14to designate a dollar amount to be paid to a specific fund
15included on the individual income tax form.
16Currently, the following four checkoffs are included on
17the individual income tax return form: the Iowa state fair
18foundation fund, the fish and game protection fund, the
19child abuse prevention program fund, and the joint income tax
20checkoff for the veterans trust fund and the volunteer fire
21fighter preparedness fund.
22Under Code section 422.12E(1), for tax years beginning on
23or after January 1, 2017, when the same four income tax return
24checkoffs have been provided on the individual income tax
25return for two consecutive years, the two checkoffs for which
26the least amount has been contributed, in the aggregate for the
27first tax year and through March 15 of the second tax year, are
28repealed. The Iowa state fair foundation fund checkoff and the
29joint income tax checkoff for the veterans trust fund and the
30volunteer fire fighter preparedness fund received the least
31amount contributed in the aggregate for the previous tax year
32and through March 15 of this tax year, and therefore have been
33repealed by operation of law.
34The bill reestablishes the Iowa state fair foundation
35checkoff and the joint income tax checkoff for the veterans
-4-1trust fund and the volunteer fire fighter preparedness fund for
2inclusion on the 2019 and 2020 individual income tax return
3forms, after which the checkoffs will again be subject to
4repeal pursuant to Code section 422.12E(1), if the checkoffs
5have the least amount of contributions in comparison to the
6other two checkoffs.
7The bill specifies that if a checkoff is repealed by
8operation of law pursuant to Code section 422.12E, the date of
9the repeal is December 31 after the end of the second tax year.
10For purposes of publishing the Code, the bill requires the
11department of revenue to notify the Iowa Code editor which two
12checkoffs received the least amount of contributions during the
13applicable year, and thereby are repealed by operation of law.
14The bill also requires the department of revenue to notify the
15Iowa Code editor when more checkoffs are enacted than there is
16space for inclusion on the individual income tax return form,
17and thereby are repealed by operation of law as well.
18The amendment to Code section 422.12H relating to the fish
19and game protection gaming fund specifies that the income tax
20checkoff for the fish and game protection fund is subject to
21repeal under Code section 422.12E just as the other checkoffs
22are subject to repeal, if the fund is one of two checkoffs
23receiving the least amount of contributions over a two-year
24period.
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