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 FOR RETROSPECTIVE OPERATION.
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 school board.
17 (b) "School" means a public or private school as referred to in Subsection 53A-11-101,
18 attendance at which satisfies the state's compulsory education law.
19 (c) "Tuition" means charges related to the teaching of those subjects legally and commonly
20 taught in the public elementary and secondary schools of the state. It does not include:
21 (i) payments for:
22 (A) transportation to and from school or school-related activities;
23 (B) textbooks, workbooks, and personal or consumable items such as those listed in
24 Section 53A-12-202;
25 (C) extracurricular activities; and
26 (D) uniforms;
27 (ii) tuition paid to or costs incurred at a home school under Subsection

1 53A-11-102(1)(b)(ii); and
2 (iii) costs related to the teaching of religious tenets, doctrine, or worship, the purpose of
3 which is to inculcate those tenets, doctrine, or worship.
4 (2) For taxable years beginning on or after January 1, 1997, and beginning before January
5 1, 2002, there is allowed for an individual taxpayer a refundable tax credit against the tax
6 otherwise due under this chapter for tuition costs paid for each qualifying student in grades
7 kindergarten through 12 attending an elementary or secondary school in this state, subject to the
8 provisions of Subsection (3).
9 (3) The credit claimed per dependent under Subsection (2) may not exceed the lesser
10 amount of the tuition paid to the school during the taxable year or the value of the weighted pupil
11 unit established in Subsection 53A-17a-103(1).
12 (4) (a) A local school board may grant certificates of participation in the tax credit program
13 authorized under this section to students as a means of:
14 (i) managing the effects of student enrollment growth within the school district;
15 (ii) reducing class size; and
16 (iii) moving students with behavioral or learning problems to more appropriate learning
17 environments.
18 (b) (i) The school board shall establish standards and procedures for determining which
19 students qualify for a certificate of participation under general guidelines provided by the State
20 Board of Education.
21 (ii) The State Board of Education shall provide for periodic review of local board
22 standards and procedures established under Subsection (4)(b)(i).
23 (5) A taxpayer claiming the credit provided for under Subsection (2) shall submit to the
24 commission for the year in which the credit is claimed:
25 (a) a certificate of participation issued by the school board under Subsection (4)(a); and
26 (b) verification of the amount of tuition paid by the taxpayer to the school of attendance.
27 (6) The amount of the credit allowed under Subsection (2) that exceeds the tax shall be
28 refunded to the taxpayer.
29 Section 2. Retrospective operation.
30 This act has retrospective operation for taxable years beginning on or after January 1, 1997.


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Legislative Review Note
as of 2-10-97 4:55 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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