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H.B. 7 Enrolled
LONG TITLE
General Description:
This bill modifies the Individual Income Tax Act relating to individual income tax
contributions for education.
Highlighted Provisions:
This bill:
. repeals language designating certain individual income tax contributions to higher
education because the contributions failed to generate $30,000 per year for three
consecutive taxable years and the State Tax Commission was required by statute to
remove the designation for the contribution from tax returns and not collect the
contribution from individuals;
. repeals language designating certain individual income tax contributions to a
chapter of the Utah Public Education Foundation because the Utah Public Education
Foundation is no longer in existence;
. authorizes an individual income tax contribution to be made to a school district if
the school district has not established a foundation;
. provides that if a person making a contribution to a school district foundation does
not designate a particular school district foundation to receive the contribution, the
contribution shall be made to the Utah State Office of Education to be distributed to
one or more associations of foundations;
. provides that if a person making a contribution to a school district does not
designate a particular school district to receive the contribution, the contribution
shall be made to the Utah State Office of Education; and
. makes technical changes.
Monies Appropriated in this Bill:
None
Other Special Clauses:
This bill has retrospective operation for taxable years beginning on or after January 1,
2005.
Utah Code Sections Affected:
AMENDS:
59-10-549, as last amended by Chapter 234, Laws of Utah 2004
59-10-551, as last amended by Chapter 162, Laws of Utah 2003
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-10-549 is amended to read:
59-10-549. Contributions for education.
(1) Except as provided in Section 59-10-551 , a taxpayer that files a return pursuant to
Section 59-10-502 may designate on the return a contribution as provided in this section to:
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income taxation under Section 501(c)(3), Internal Revenue Code; or
(ii) a school district described in Title 53A, Chapter 2, School Districts, if the school
district has not established a foundation;
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53B-2a-105; or
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before December 31, 2006, the Uniform School Fund.
(2) (a) A taxpayer may designate as a contribution under this section any whole dollar
amount of $1 or more.
(b) (i) If the taxpayer is owed an individual income tax refund for the taxable year, the
amount of a contribution under this section shall be deducted from the taxpayer's individual
income tax refund.
(ii) If the taxpayer is not owed an individual income tax refund for the taxable year, the
taxpayer may remit a contribution under this section with the taxpayer's individual income tax
return.
(c) If a taxpayer files a joint return, the contribution under this section shall be a joint
contribution.
(d) A contribution under this section is irrevocable during the taxable year for which the
taxpayer makes the contribution.
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(a) Subsection (1)[
foundation to receive the contribution, the contribution shall be made to [
associations of foundations:
(i) if those foundations that are members of the association are established in accordance
with Section 53A-4-205 ; and
(ii) as determined by the Utah State Office of Education; or
(b) Subsection (1)(a)(ii), but does not designate a particular school district to receive the
contribution, the contribution shall be made to the Utah State Office of Education.
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the commission may make rules to implement this section.
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(a) determine annually the total amount of contributions designated in accordance with
this section; and
(b) report this amount to the state treasurer.
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accordance with Subsection [
(a) subject to [
contribution to an entity listed in [
accordance with this section, to the entity that is designated by the taxpayer; or
(b) if a taxpayer designates a contribution to the Uniform School Fund under Subsection
(1)[
Section 2. Section 59-10-551 is amended to read:
59-10-551. Removal of designation and prohibitions on collection for certain
contributions on income tax form -- Conditions for removal and prohibitions on collection
-- Commission reporting requirements.
(1) (a) Beginning on January 1, 1998, if a contribution or combination of contributions
described in Subsection (1)(b) generate less than $30,000 per year for three consecutive years, the
commission shall remove the designation for the contribution from the income tax return and
may not collect the contribution from a resident or nonresident individual beginning two taxable
years after the three-year period for which the contribution generates less than $30,000 per year.
(b) The following contributions apply to Subsection (1)(a):
(i) the contribution provided for in Section 59-10-530 ;
(ii) the contribution provided for in Section 59-10-530.5 ;
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59-10-549 (1)[
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(2) If the commission removes the designation for a contribution under Subsection (1),
the commission shall report to the Revenue and Taxation Interim Committee that the commission
removed the designation on or before the November interim meeting of the year in which the
commission determines to remove the designation.
Section 3. Retrospective operation.
This bill has retrospective operation for taxable years beginning on or after January 1,
2005.
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