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S.B. 109

             1     

INDIVIDUAL INCOME TAX CONTRIBUTIONS

             2     
FOR EDUCATION

             3     
2004 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: David L. Thomas

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Individual Income Tax Act.
             10      Highlighted Provisions:
             11          This bill:
             12          .    authorizes a taxpayer to contribute $1 or more to the Uniform School Fund on the
             13      taxpayer's individual income tax return;
             14          .    repeals obsolete language authorizing a taxpayer to contribute $1 or more to an
             15      applied technology center or applied technology service center and authorizes the
             16      contribution to be made to a campus of the Utah College of Applied Technology;
             17          .    provides that the State Tax Commission shall remove the designation for the
             18      Uniform School Fund contribution from the individual income tax form and may
             19      not collect the contribution from a taxpayer under certain circumstances; and
             20          .    makes technical changes.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill has retrospective operation for taxable years beginning on or after January 1,
             25      2004.
             26      Utah Code Sections Affected:
             27      AMENDS:


             28          59-10-549, as last amended by Chapter 216, Laws of Utah 2001
             29          59-10-551, as last amended by Chapter 162, Laws of Utah 2003
             30     
             31      Be it enacted by the Legislature of the state of Utah:
             32          Section 1. Section 59-10-549 is amended to read:
             33           59-10-549. Contributions for education.
             34          (1) Except as provided in Section 59-10-551 , a taxpayer that files a return pursuant to
             35      Section 59-10-502 may designate on the return a contribution as provided in this section to:
             36          (a) the State Board of Regents created by Section 53B-1-103 for:
             37          (i) libraries; or
             38          (ii) library equipment;
             39          (b) an institution of higher education created by Section 53B-2-101 for:
             40          (i) libraries; or
             41          (ii) library equipment;
             42          (c) the foundation of any school district that is exempt from federal income taxation
             43      under Section 501(c)(3), Internal Revenue Code;
             44          (d) a chapter of the Utah Public Education Foundation; [or]
             45          [(e) (i) an applied technology center listed in Section 53A-15-202.5 ; or]
             46          [(ii) an applied technology service center.]
             47          (e) a college campus of the Utah College of Applied Technology listed in Section
             48      53B-2a-105; or
             49          (f) the Uniform School Fund.
             50          (2) (a) A taxpayer may designate as a contribution under this section any whole dollar
             51      amount of $1 or more.
             52          (b) (i) If the taxpayer is owed an individual income tax refund for the taxable year, the
             53      amount of a contribution under this section shall be deducted from the taxpayer's individual
             54      income tax refund.
             55          (ii) If the taxpayer is not owed an individual income tax refund for the taxable year, the
             56      taxpayer may remit a contribution under this section with the taxpayer's individual income tax
             57      return.
             58          (c) If a taxpayer files a joint return, the contribution under this section shall be a joint


             59      contribution.
             60          (d) A contribution under this section is irrevocable during the taxable year for which
             61      the taxpayer makes the contribution.
             62          (3) If a taxpayer designates an amount as a contribution under Subsection (1)(b), but
             63      does not designate a particular institution of higher education to receive the contribution, the
             64      contribution shall be made to the State Board of Regents for the purposes described in
             65      Subsection (1)(a).
             66          (4) If a taxpayer designates an amount as a contribution under Subsection (1)(c), but
             67      does not designate a particular school district foundation to receive the contribution, the
             68      contribution shall be made to the Utah Public Education Foundation.
             69          (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             70      commission may make rules to implement this section.
             71          (6) The commission shall:
             72          (a) determine annually the total amount of contributions designated in accordance with
             73      this section; and
             74          (b) report this amount to the state treasurer.
             75          (7) The state treasurer shall credit any contributions reported to the state treasurer in
             76      accordance with Subsection (6) [to the educational institution described in Subsection (1)
             77      designated by the taxpayer in accordance with this section.]:
             78          (a) subject to Subsections (3) and (4), if a taxpayer designates a contribution to an
             79      entity listed in Subsections (1)(a) through (e) in accordance with this section, to the entity that
             80      is designated by the taxpayer; or
             81          (b) if a taxpayer designates a contribution to the Uniform School Fund under
             82      Subsection (1)(f) in accordance with this section, to the Uniform School Fund.
             83          Section 2. Section 59-10-551 is amended to read:
             84           59-10-551. Removal of designation and prohibitions on collection for certain
             85      contributions on income tax form -- Conditions for removal and prohibitions on
             86      collection -- Commission reporting requirements.
             87          (1) (a) Beginning on January 1, 1998, if a contribution or combination of contributions
             88      described in Subsection (1)(b) generate less than $30,000 per year for three consecutive years,
             89      the commission shall remove the designation for the contribution from the income tax return


             90      and may not collect the contribution from a resident or nonresident individual beginning two
             91      taxable years after the three-year period for which the contribution generates less than $30,000
             92      per year.
             93          (b) The following contributions apply to Subsection (1)(a):
             94          (i) the contribution provided for in Section 59-10-530 ;
             95          (ii) the contribution provided for in Section 59-10-530.5 ;
             96          (iii) the sum of the contributions provided for in:
             97          (A) Subsection 59-10-549 (1)(a); and
             98          (B) Subsection 59-10-549 (1)(b);
             99          (iv) the sum of the contributions provided for in:
             100          (A) Subsection 59-10-549 (1)(c); and
             101          (B) Subsection 59-10-549 (1)(d);
             102          (v) the contribution provided for in Subsection 59-10-549 (1)(e);
             103          (vi) the contribution provided for in Subsection 59-10-549 (1)(f);
             104          [(vi)] (vii) the contribution provided for in Section 59-10-550 ; or
             105          [(vii)] (viii) the contribution provided for in Section 59-10-550.1 .
             106          (2) If the commission removes the designation for a contribution under Subsection (1),
             107      the commission shall report to the Revenue and Taxation Interim Committee that the
             108      commission removed the designation on or before the November interim meeting of the year in
             109      which the commission determines to remove the designation.
             110          Section 3. Retrospective operation.
             111          This bill has retrospective operation for taxable years beginning on or after January 1,
             112      2004.




Legislative Review Note
    as of 1-14-04 2:50 PM


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

Office of Legislative Research and General Counsel


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