House of Representatives

HB 2180

tax credit; donations for public schools

Sponsors: Representative Gray: Senator Hamilton

X	Committee on Education
	Committee on Ways and Means
	Committee on Appropriation
	Caucus and COW
	As Passed the House

HB 2180 repeals the public school fees and contribution personal income tax credit and creates a new personal income tax credit for donations to public schools. Donations to the public schools will be placed in the public school donation fund and the Superintendent of Public Instruction shall distribute the monies in the fund to all public schools based on their student counts.

History

The public school fees and contributions personal income tax credit was enacted in 1997. The tax credit is allowed for any fees or cash contributions paid to a public school for the support of extracurricular activities or character education programs. The credit is capped at $200 for single or head of household filers and at $250 for married couples filing jointly.

HB 2180 repeals the personal income tax credit for public school fees and contributions and enacts a new personal income tax credit for donations to public schools. As introduced, the bill does not cap the amount of the credit. Donations that are eligible for the tax credit are placed in a fund administered by the Department of Education for equal distribution to the public schools.

In calendar year 1999, a total of 1,235 public schools reported total eligible fees and contributions of $14.8 million from 109,748 donors.

Provisions

· Repeals the existing personal income tax credit for “extracurricular activity fees” that are paid to public schools.

· Creates a new personal income tax credit in the amount of any gift, grant or other donations of money made by the taxpayer to the public school donation fund.

· Creates the public school donation fund. The fund consist of cash gifts, grants and other donations to the fund. Donations to the fund must be unrestricted as to recipient schools and ultimate use.

· The Department of Education will administer the fund. The Superintendent shall prescribe a uniform donation form and make the form available to the public.

· The Superintendent shall distribute monies in the fund on or before June 30^th of each year to public schools in this state based on student count for use as determined by the recipient school’s council.

· Monies distributed to schools shall not supplant any other monies paid by this state to schools and school districts and any other school funding source.

· The act is effective for tax years beginning from and after December 31, 2001.

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· 45th Legislature

· First Regular Session 2 January 18, 2001

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