First Substitute S.B. 61

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INCOME TAX - EDUCATION TAX CREDIT
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Howard A. Stephenson
5 AN ACT RELATING TO REVENUE AND TAXATION; PROVIDING AN INDIVIDUAL
6 INCOME TAX CREDIT FOR EDUCATIONAL COSTS UNDER CERTAIN
7 CIRCUMSTANCES; AND PROVIDING DEFINITIONS.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 ENACTS:
10 59-10-108.8, Utah Code Annotated 1953
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 59-10-108.8 is enacted to read:
13 59-10-108.8. Credit for tuition paid to a private school.
14 (1) As used in this section:
15 (a) "Qualifying student" means a student who has received a certificate of participation
16 from a local public school board.
17 (b) "School" means a private school as referred to in Subsection 53A-11-101, attendance
18 at which satisfies the state's compulsory education law. It does not include a parochial school or
19 a home school.
20 (c) "Tuition" means charges related to the teaching of those subjects legally and commonly
21 taught in the public elementary and secondary schools of the state. It does not include payments
22 for:
23 (i) transportation to and from school or school-related activities;
24 (ii) textbooks, workbooks, and personal or consumable items such as those listed in
25 Section 53A-12-202;
26 (iii) extracurricular activities; or
27 (iv) uniforms.

1 (2) For taxable years beginning on or after January 1, 1998, and beginning before January
2 1, 2003, there is allowed for an individual taxpayer a refundable tax credit against the tax
3 otherwise due under this chapter for tuition costs paid for each qualifying student in grades
4 kindergarten through 12 attending an elementary or secondary school in this state, subject to the
5 provisions of Subsection (3).
6 (3) The credit claimed per dependent under Subsection (2) may not exceed the lesser
7 amount of the tuition paid to the school during the taxable year or the value of the weighted pupil
8 unit used by the State Office of Education in its final accounting for the school year in question.
9 (4) (a) A local school board may grant certificates of participation in the tax credit program
10 authorized under this section to students as a means of:
11 (i) managing the effects of student enrollment growth within the school district; or
12 (ii) reducing class size.
13 (b) (i) h S [[ ] The [ ] ] [A ] s STATE h school board S h [ ELECTING TO ] MAY h
13a1 IMPLEMENT h [ THE ] A ONE YEAR PILOT h PROGRAM h IN ONE LOCAL SCHOOL DISTRICT h
13a2 AUTHORIZED
13a UNDER THIS SECTION s shall establish standards and procedures for determining which
14 students qualify for a certificate of participation and which schools will be eligible to receive
15 qualifying students under general guidelines provided by the State Board of Education.
16 (ii) The State Board of Education shall provide for periodic review of local board
17 standards and procedures established under Subsection (4)(b)(i).
18 (c) (i) S [The] A s school board S ELECTING TO IMPLEMENT THE PROGRAM AUTHORIZED
18a UNDER THIS SECTION s shall project by December 1 of each year the number of
19 certificates of participation it shall grant for the next school year based on its current October 1
20 student count.
21 (ii) The number of students projected to receive certificates may not be included in the
22 district's student count for state funding purposes for the next fiscal year.
23 (d) The school board may only grant certificates of participation to students:
24 (i) who would be entering kindergarten in a public school the board has targeted for
25 growth restrictions;
26 (ii) who were enrolled on a fulltime basis for at least six months during the previous school
27 year in a school targeted for growth restrictions; or
28 (iii) who attended school under a certificate of participation during the previous school
29 year, so long as the public school the student would otherwise attend remains targeted for growth
30 restrictions.
31 (5) A taxpayer claiming the credit provided for under Subsection (2) shall submit a
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Amend on 3_goldenrod February 28, 1997

lilac-March 4, 1997

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1 certificate of participation issued by the school board under Subsection (4)(a) to the commission
2 for the year in which the credit is claimed.
3 (6) The amount of the credit allowed under Subsection (2) that exceeds the tax shall be
4 refunded to the taxpayer.
5 (7) A school district may provide transportation for students attending a school under a
6 certificate of participation.

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