Proyectos de ley › 89.ª Asamblea General
Relating to the investment and use of funds in the veterans trust fund
Presentado por el comité Veterans Affairs de la Cámara
Dónde está ahora
- Hecho: Presentado10 de febrero de 2021
- Hecho: Subcomité25 de enero de 2022
- Hecho: Comité de la Cámara2 de marzo de 2022
- Hecho: Lo aprueba la Cámara2 de marzo de 202299–0
- Hecho: Comité del Senado8 de marzo de 2022
- Hecho: Lo aprueba el Senado10 de marzo de 202148–0
- Hecho: A gobernador(a)21 de abril de 2022
- Hecho: Firmado como ley21 de abril de 2022
Firmado como ley ¿Qué es el embudo (funnel)?
Qué contiene
Resumen con IA This bill changes how the state manages and invests money in the veterans trust fund. It allows the state treasurer to invest these funds in more ways to help the account grow, while also setting rules for how much money is spent on veteran benefits based on the fund's total balance. Additionally, it protects state officials from being sued over investment decisions unless they act with malicious intent. (Todavía no está traducido al español.)1
Lea la explicación oficial (en inglés)
This bill relates to the investment and use of funds in the veterans trust fund. The bill exempts the veterans trust fund (trust fund) from rules adopted by the treasurer of state to limit certain investments of public funds. The bill removes the ability to use moneys from the trust fund for cash flow purposes. The bill allows the treasurer of state, in consultation with the commission of veterans affairs (commission) and the public retirement systems committee, to invest moneys in the trust fund not necessary for disbursements to benefit veterans in any investments authorized for the Iowa public employees’ retirement system. Any earnings shall be credited to the trust fund, and the treasurer of state may make contracts and agreements with investment advisors, consultants, and investment management and benefit consultant firms for the administration of investments. The bill provides that certain investment management expenses shall be charged to the investment income of the trust fund. The bill exempts the commission, the public retirement systems committee, the treasurer of state, and their employees from liability based upon an act or omission of the entity or person’s duties regarding the investment of the trust fund, except for acts or omissions which involve malicious or wanton misconduct.5 million transferred annually to the trust fund from the lottery fund will be appropriated to the commission for certain enumerated benefits to veterans. The bill provides that for each fiscal year that the balance of the trust fund on July is above $50 million, but the balance of the fund was below $50 million on July of the previous fiscal year, the moneys transferred to the trust fund from the lottery fund will be appropriated to the commission for certain enumerated benefits to veterans. The bill provides that for each fiscal year that the balance of the trust fund on July is above $50 million, and the balance of the fund was above $50 million on July of the previous fiscal year, moneys equal to the trust fund’s net income for the previous fiscal year will be appropriated to the commission for certain enumerated benefits to veterans.
Cambiado después por la enmienda S-3059; vea Enmiendas.
Texto completo del proyecto (en inglés) · Qué cambió antes de aprobarse2
Senate subcommittee
Named March 3, 2022. On March 7, 2022 it recommended passage.
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Nota fiscal
Resumen con IA This bill exempts up to $20,000 in annual military pay for National Guard drills and field exercises from individual income tax. It is projected to decrease State General Fund revenue by $8.1 million for fiscal year 2023 and $5.6 million for fiscal year 2024. Additionally, the exemption is expected to reduce the local option income surtax for schools by $211,000 in fiscal year 2023 and $150,000 for fiscal year 2024 and after. (en inglés)3
Lea la nota fiscal (en inglés)
Description
House File 2051 exempts from the individual income tax up to $20,000 in annual military pay received under 32 U.S.C. §502 (National Guard required drills and field exercises). The exemption is effective retroactively to January 1, 2022.
Background
Under current law, pay received from the federal government for military service by members of the armed forces, armed forces military reserve, and the National Guard in an active duty status, as defined in U.S.C. Title 10, is exempt from the Iowa individual income tax.
Assumptions
The fiscal impact estimate was developed by the Department of Revenue using the following sources and procedures:
- Data regarding 2021 pay, rank, and time in service was obtained from the Iowa Army National Guard manning roster. The information includes estimates of taxable income and number of personnel at each pay grade.
- Pay schedules beyond 2021 were estimated using the Employment Cost Index (ECI) for military personnel. Projections of the ECI for each year through 2028 are based on consensus forecasts from Moody’s Analytics.
- Personnel numbers for each pay grade through 2028 are assumed to remain unchanged.
- It is assumed that 5.0% of income is earned while deployed on active duty and thus would be exempt under current law.
- State tax liability is estimated on a single taxpayer example basis for each pay grade, with the result multiplied by the total personnel number at that pay grade and then summed across all pay grades.
- Based on the number of Army National Guard and Air National Guard personnel, the Army National Guard amount is multiplied by 27.4% to account for Air National Guard personnel.
- The preceding assumptions concerning the proposed $20,000 income exemption result in a projected annual reduction in taxable income of $86.0 million.
- Tax year 2022 impacts are assumed to fall in FY 2023. For tax years after 2022, 48.0% of the impact is assumed to fall in the fiscal year when the tax year starts and 52.0% in the next fiscal year.
- Tax exemptions lower the statewide yield received through the local option income surtax for schools. The surtax reduction is assumed to equal 2.6% of the projected amount of the State income tax reduction.
Fiscal Impact
The proposed exemption of up to $20,000 in annual National Guard drill and field exercise pay is projected to decrease tax liability and State General Fund revenue by $8.1 million for FY 2023 and $5.6 million for FY 2024. The reductions are projected to increase in future fiscal years by the annual rate of increase in the ECI.
The tax exemption is also projected to reduce the statewide yield from the local option income surtax for schools by $211,000 in FY 2023 and $150,000 for FY 2024 and after.
Sources
- Department of Revenue
- Iowa Army National Guard
- Employment Cost Index
- Military Pay, Exemptions · 16 de febrero de 2022 · $211,000
Lo que cambia del Código de Iowa (Iowa Code)
Cabildeo
8 a favor · 0 en contra · 10 indecisos · Quiénes →
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Study bill
Earlier and later bills are matched by wording or an identical title.
Tried before
This idea has been filed in an earlier General Assembly. None became law, though one got through a chamber.
- SF 2267 Relating to the investment and use of funds in the veterans trust fund88th General Assembly · Renumbered as SF 2405 · same titleCleared committee
- SF 2405 Relating to the investment and use of funds in the veterans trust fund88th General Assembly · Passed Senate · same titlePassed a chamber
Matched by wording or an identical title.