Bill Text: IA HF2033 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act providing for the designation of voluntary income tax contributions on the Iowa individual income tax return and including retroactive applicability provisions.

Spectrum: Partisan Bill (Republican 17-0)

Status: (Introduced - Dead) 2018-02-19 - Subcommittee: Vander Linden, Jacoby and Windschitl. H.J. 307. [HF2033 Detail]

Download: Iowa-2017-HF2033-Introduced.html

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House File 2033 - Introduced




                                 HOUSE FILE       
                                 BY  HEARTSILL, PETTENGILL,
                                     SHEETS, WHEELER,
                                     FISHER, LANDON, KERR,
                                     HAGER, CARLSON,
                                     GUSTAFSON, WILLS,
                                     SALMON, LUNDGREN,
                                     HINSON, HUSEMAN,
                                     WATTS, and KAUFMANN

                                      A BILL FOR

  1 An Act providing for the designation of voluntary income tax
  2    contributions on the Iowa individual income tax return and
  3    including retroactive applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 5424YH (6) 87
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PAG LIN



  1  1    Section 1.  NEW SECTION.  422.12N  Voluntary income tax
  1  2 contribution.
  1  3    1.  A person who files an individual or a joint income tax
  1  4 return with the department of revenue under section 422.13
  1  5 may designate one dollar or more to be paid as a voluntary
  1  6 income tax contribution.  If the refund due on the return or
  1  7 the payment remitted with the return is insufficient to pay
  1  8 the additional amount designated by the taxpayer, the amount
  1  9 designated shall be reduced to the remaining amount remitted
  1 10 with the return.  If a taxpayer also designates an amount to an
  1 11 income tax checkoff under section 422.12D, 422.12H, 422.12K,
  1 12 or 422.12L, any refund due on the return or payment remitted
  1 13 with the return shall be credited to those contributions before
  1 14 the voluntary income tax contribution provided in this section.
  1 15 The designation of a voluntary income tax contribution under
  1 16 this section is irrevocable.
  1 17    2.  The director of revenue shall draft the income tax form
  1 18 to allow voluntary income tax contributions on the tax return.
  1 19 The voluntary income tax contribution provided in this section
  1 20 shall not be considered an income tax return checkoff subject
  1 21 to section 422.12E.  The income tax form shall be drafted in a
  1 22 manner that allows a taxpayer to designate that the voluntary
  1 23 income tax contribution, or portions of the voluntary income
  1 24 tax contribution, be credited to a maximum of five different
  1 25 state funds.  The director of revenue and the director of the
  1 26 department of management shall jointly adopt rules identifying
  1 27 all current state funds and shall revise or update such list
  1 28 at least annually, and the director of revenue shall make a
  1 29 complete and current list of such state funds available to
  1 30 taxpayers in preparing their income tax returns.
  1 31    3.  A voluntary income tax contribution designated and paid
  1 32 pursuant to this section shall be an unrestricted charitable
  1 33 contribution to the state and shall not be considered an
  1 34 estimated tax payment or an overpayment of tax, or otherwise
  1 35 credited to any account, charge, fee, loan, tax, or other
  2  1 indebtedness of the taxpayer due the state.
  2  2    4.  All contributions collected under this section shall
  2  3 be credited to the state fund or funds designated by the
  2  4 taxpayer.  In the event that no state fund is designated for a
  2  5 contribution or a portion of a contribution, such amounts shall
  2  6 be credited to the general fund of the state.
  2  7    5.  For purposes of this section, "state fund" means any
  2  8 fund or account of the state that meets all of the following
  2  9 requirements:
  2 10    a.  The fund or account is under the control of the general
  2 11 assembly.
  2 12    b.  The fund or account is authorized by law to receive
  2 13 moneys.
  2 14    c.  The receipt of moneys by the fund or account in the
  2 15 manner provided in this section would not be in violation of
  2 16 any other state or federal law, and would not jeopardize the
  2 17 receipt of federal funds to the fund or account.
  2 18    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  2 19 retroactively to January 1, 2018, for tax years beginning on
  2 20 or after that date.
  2 21                           EXPLANATION
  2 22 The inclusion of this explanation does not constitute agreement with
  2 23 the explanation's substance by the members of the general assembly.
  2 24    This bill provides for the designation of voluntary
  2 25 income tax contributions by taxpayers who file an Iowa
  2 26 individual income tax return.  The bill requires the director
  2 27 of revenue to provide space on the individual income tax
  2 28 form for taxpayers to make irrevocable voluntary income tax
  2 29 contributions to up to five different state funds of the
  2 30 state of Iowa.  The director of revenue and the director of
  2 31 the department of management are required to jointly adopt
  2 32 rules identifying all current state funds, and the director of
  2 33 revenue is required to make such list of state funds available
  2 34 to taxpayers in preparing their income tax returns.  The bill
  2 35 defines "state fund".  Amounts collected are credited to the
  3  1 state fund or funds designated by the taxpayer or, if no state
  3  2 fund is designated, to the general fund of the state.
  3  3    If the refund due on the return or the payment remitted with
  3  4 the return is insufficient to pay the voluntary income tax
  3  5 contribution designated by the taxpayer, the amount designated
  3  6 shall be reduced to the remaining amount remitted with the
  3  7 return.  Additionally, if a taxpayer also designates an amount
  3  8 to an income tax checkoff as otherwise provided by law, the
  3  9 tax refund or additional payment shall be credited to those
  3 10 checkoffs before the voluntary income tax contribution.  The
  3 11 voluntary income tax contribution shall not be considered an
  3 12 income tax checkoff subject to the limitation in Code section
  3 13 422.12E, which limits to four the number of income tax return
  3 14 checkoffs that can appear on the return, and which provides for
  3 15 the automatic repeal of certain checkoffs.
  3 16    The bill provides that the voluntary income tax
  3 17 contributions are unrestricted charitable contributions to the
  3 18 state, and shall not be considered an estimated tax payment,
  3 19 overpayment of tax, or credited to any indebtedness of the
  3 20 taxpayer due the state.
  3 21    The bill applies retroactively to January 1, 2018, for tax
  3 22 years beginning on or after that date.
       LSB 5424YH (6) 87
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