Bills › 88th General Assembly
SSB 1258
Topics:Income taxes
Same legislation: SF 635
Where it is now
- Done: IntroducedApril 18, 2019
- Done: SubcommitteeApril 16, 2019
- Done: Senate committeeApril 18, 2019
- Stopped: Passes the SenateDied when the General Assembly ended
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
AI summary People filing Iowa income tax returns can once again choose to donate a specific amount of money to the Iowa State Fair Foundation, the Veterans Trust Fund, and the Volunteer Fire Fighter Preparedness Fund. These donation options were previously removed because they received the lowest amount of contributions. The funds will stay on the tax forms for the 2019 and 2020 tax years, but they could be removed again if they continue to receive less money than other available funds.1
Read the official explanation
This bill reestablishes the individual income tax checkoff for the Iowa state fair foundation fund and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund. A checkoff allows a taxpayer who files an individual or a joint income tax return with the department of revenue to designate a dollar amount to be paid to a specific fund included on the individual income tax form. Currently, the following four checkoffs are included on the individual income tax return form: the Iowa state fair foundation fund, the fish and game protection fund, the child abuse prevention program fund, and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund. 12E(1), for tax years beginning on or after January 1, 2017, when the same four income tax return checkoffs have been provided on the individual income tax return for two consecutive years, the two checkoffs for which the least amount has been contributed, in the aggregate for the first tax year and through March of the second tax year, are repealed. The Iowa state fair foundation fund checkoff and the joint income tax checkoff for the veterans trust fund and the volunteer fire fighter preparedness fund received the least amount contributed in the aggregate for the previous tax year and through March of this tax year, and therefore have been repealed by operation of law.12E(1), if the checkoffs have the least amount of contributions in comparison to the other two checkoffs.12E, the date of the repeal is December 31. For purposes of publishing the Code, the bill requires the department of revenue to notify the Iowa Code editor which two checkoffs received the least amount of contributions during the applicable tax year, and thereby are repealed by operation of law. The bill also requires the department of revenue to notify the Iowa Code editor when more checkoffs are enacted than there is space for inclusion on the individual income tax return form, and thereby are repealed by operation of law as well.12E just as the other checkoffs are subject to repeal, if the fund is one of two checkoffs receiving the least amount of contributions over a two-year period.
Senate subcommittee
Named April 16, 2019. On April 17, 2019 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill reestablishes voluntary income tax checkoffs that allow taxpayers to donate money to the Iowa State Fair Foundation Fund and the joint Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund. Because these are voluntary donations from taxpayers rather than state money, there is no impact on the state's General Fund. Annual contributions to these two checkoffs average about $65,000 each for tax years 2019 and 2020.3
Read the fiscal note
Description
Senate File 635 reestablishes the individual income tax checkoffs for the Iowa State Fair Foundation Fund and the joint Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund. The changes are effective for tax years (TY) 2019 and 2020.
Background
A checkoff allows a taxpayer who files an Iowa individual income tax return to designate a dollar amount to be contributed to a specific fund.
For TY 2018, the following four checkoffs were included on the form:
- Iowa State Fair Foundation Fund
- Fish and Game Protection Fund
- Child Abuse Prevention Program Fund
- Joint Veterans Trust Fund and Volunteer Firefighter Preparedness Fund Iowa Code section 422.12E provides that when the same four income tax checkoffs have been on the tax return for two consecutive tax years, the two checkoffs with the least amount of contributions over a specified time period are repealed. The Iowa State Fair Foundation Fund and the joint Veterans Trust Fund and Volunteer Fire Fighter Preparedness Fund received the lowest contributed amounts over the latest specified period, so both were repealed by operation of law.
The following table shows the average annual tax checkoff contribution amounts for the last 10 tax years (TY 2008 through TY 2017) and the last two tax years.
Checkoff
Last 10 Tax
Years
Tax Years
2016 & 2017 Only Fish and Wildlife $131,872 $148,354 State Fair 65,944 64,167 Veterans/Fire Fighter 62,543 72,098 Child Abuse 66,690 79,472 Total $327,049 $364,091
Average Annual Checkoff Levels
Fiscal Impact
The tax checkoffs available on an Iowa individual income tax return are voluntary contributions, and any contribution made represents money donated by the taxpayer and not money diverted from the State General Fund. Reestablishing the two repealed checkoffs will give Iowa taxpayers the opportunity to donate to the two programs through the tax return process for TY 2019 and TY 2020. Annual contributions to the two checkoffs average about $65,000 each.
Source
- Department of Revenue
- Income Tax Checkoffs · April 24, 2019
Iowa Code it changes
Lobbying
4 for · 0 against · 3 undecided · Who →
Family tree
Study bill
88th General Assembly