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Senate
File
2183
-
Introduced
SENATE
FILE
2183
BY
SINCLAIR
and
DICKEY
A
BILL
FOR
An
Act
providing
for
the
Iowa
individual
income
tax
checkoff
1
for
public
schools
and
the
public
school
checkoff
fund,
2
making
appropriations,
and
providing
for
implementation
of
3
the
checkoff
on
the
return.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
257.52
Public
school
checkoff
fund
1
——
appropriation.
2
1.
A
public
school
fund
is
created
in
the
state
treasury
3
under
the
control
of
the
department
of
management.
The
fund
is
4
composed
of
moneys
appropriated
or
available
to
and
obtained
5
or
accepted
by
the
treasurer
of
state
for
deposit
in
the
fund.
6
The
fund
shall
include
moneys
transferred
to
the
fund
pursuant
7
to
an
income
tax
checkoff
provided
in
chapter
422,
subchapter
8
II,
if
applicable.
Notwithstanding
section
12C.7,
subsection
9
2,
interest
earned
on
moneys
in
the
fund
shall
be
credited
to
10
and
remain
in
the
fund.
Section
8.33
does
not
apply
to
moneys
11
in
the
fund.
12
2.
There
is
appropriated
from
the
fund
to
the
department
13
of
management
for
the
fiscal
year
beginning
July
1,
2027,
and
14
for
each
fiscal
year
thereafter,
any
moneys
available
in
the
15
fund
to
make
the
payments
to
school
districts
required
under
16
subsection
3.
17
3.
The
moneys
appropriated
to
the
department
of
management
18
under
this
section
shall
be
used
to
provide
a
funding
19
supplement
to
each
school
district
for
the
fiscal
year
20
beginning
July
1,
2027,
and
for
each
fiscal
year
thereafter.
21
The
moneys
available
in
a
fiscal
year
in
the
fund
shall
be
22
distributed
by
the
department
of
management
to
each
school
23
district
on
a
per
pupil
basis
calculated
using
each
school
24
district’s
budget
enrollment,
as
defined
in
section
257.6,
for
25
that
fiscal
year.
26
4.
The
moneys
received
by
a
school
district
shall
be
27
miscellaneous
income,
shall
be
deposited
in
the
general
fund
of
28
the
school
district,
may
be
used
for
any
school
general
fund
29
purpose
during
any
school
budget
year
beginning
on
or
after
30
July
1,
2027,
and
shall
not
be
included
in
district
cost.
31
Sec.
2.
NEW
SECTION
.
422.12M
Income
tax
checkoff
for
public
32
schools
33
1.
A
person
who
files
an
individual
or
a
joint
income
tax
34
return
with
the
department
of
revenue
under
section
422.13
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may
designate
one
dollar
or
more
to
be
paid
to
public
schools
1
to
be
distributed
pursuant
to
section
257.52.
If
the
refund
2
due
on
the
return
or
the
payment
remitted
with
the
return
is
3
insufficient
to
pay
the
additional
amount
designated
by
the
4
taxpayer
to
the
public
schools,
the
amount
designated
shall
5
be
reduced
to
the
remaining
amount
remitted
with
the
return.
6
The
designation
of
a
contribution
to
public
schools
under
this
7
section
is
irrevocable.
8
2.
The
director
of
revenue
shall
draft
the
income
tax
form
9
to
allow
the
designation
of
contributions
to
public
schools
10
on
the
tax
return.
The
department
of
revenue,
on
or
before
11
January
31,
shall
transfer
the
total
amount
designated
on
the
12
tax
return
forms
due
in
the
preceding
calendar
year
to
the
13
public
school
checkoff
fund
as
provided
in
section
257.52.
14
However,
before
a
checkoff
pursuant
to
this
section
shall
be
15
permitted,
all
liabilities
on
the
books
of
the
department
and
16
accounts
identified
as
owing
under
section
421.65
shall
be
17
satisfied.
18
3.
The
department
of
revenue
shall
adopt
rules
to
administer
19
this
section.
20
4.
This
section
is
subject
to
repeal
under
section
422.12E.
21
Sec.
3.
IMPLEMENTATION.
The
checkoff
created
in
this
Act
22
shall
be
eligible
for
placement
on
the
individual
income
tax
23
return
form
for
the
tax
year
beginning
January
1,
2026.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
provides
that
taxpayers
filing
individual
income
28
tax
returns
will
be
allowed
to
designate
$1
or
more
on
the
29
return
to
be
paid
to
the
public
school
checkoff
fund.
The
bill
30
creates
the
public
school
checkoff
fund
in
the
state
treasury
31
under
the
control
of
the
department
of
management
(DOM).
The
32
bill
requires
the
department
of
revenue
to
annually
remit
33
moneys
collected
from
the
checkoff
to
the
fund.
For
the
fiscal
34
year
beginning
July
1,
2027,
and
each
fiscal
year
thereafter,
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moneys
available
in
the
fund
are
appropriated
to
DOM
to
be
1
used
to
provide
a
funding
supplement
to
each
school
district
2
during
the
fiscal
year.
The
moneys
shall
be
distributed
by
DOM
3
to
each
school
district
on
a
per
pupil
basis
calculated
using
4
each
school
district’s
budget
enrollment
as
defined
in
Code
5
section
257.6.
The
moneys
received
by
a
school
district
from
6
the
checkoff
shall
be
considered
miscellaneous
income
and
may
7
be
used
for
any
general
fund
purpose
and
shall
not
be
included
8
in
district
cost.
9
The
bill
provides
that
the
checkoff
is
eligible
for
10
placement
on
the
individual
tax
return
form
for
the
tax
year
11
beginning
January
1,
2026,
and
that
it
is
subject
to
repeal
12
under
Code
section
422.12E,
which
allows
no
more
than
four
13
checkoffs
on
the
individual
tax
return
form
and
provides
for
14
the
automatic
repeal
of
the
two
checkoffs
receiving
the
least
15
in
contributions
over
a
two-year
period.
Currently,
there
are
16
two
checkoffs
that
appear
on
the
individual
income
tax
return:
17
the
checkoff
for
the
fish
and
game
protection
fund
and
the
18
checkoff
for
the
child
abuse
prevention
program
fund.
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