S.B. 59

1

INCOME TAX CONTRIBUTION FOR ELEMENTARY
2 SCHOOLS
3 2012 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Ross I. Romero
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill amends the Individual Income Tax Contributions Act to provide an individual
11 income tax contribution for elementary schools.
12 Highlighted Provisions:
13 This bill:
14 . provides an individual income tax contribution for elementary schools in the state;
15 . provides that if the collections from the contribution and other education-related
16 contributions do not meet a certain threshold amount, the State Tax Commission
17 shall remove the designations for those contributions from the individual income
18 tax return and may not collect the contributions; and
19 . makes technical and conforming changes.
20 Money Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill has retrospective operation for a taxable year beginning on or after January 1,
24 2012.
25 Utah Code Sections Affected:
26 AMENDS:
27 59-10-1304, as last amended by Laws of Utah 2011, Chapter 294

28 ENACTS:
29 59-10-1316, Utah Code Annotated 1953
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 59-10-1304 is amended to read:
33 59-10-1304. Removal of designation and prohibitions on collection for certain
34 contributions on income tax return -- Conditions for removal and prohibitions on
35 collection -- Commission reporting requirements.
36 (1) (a) If a contribution or combination of contributions described in Subsection (1)(b)
37 generate less than $30,000 per year for three consecutive years, the commission shall remove
38 the designation for the contribution from the individual income tax return and may not collect
39 the contribution from a resident or nonresident individual beginning two taxable years after the
40 three-year period for which the contribution generates less than $30,000 per year.
41 (b) The following contributions apply to Subsection (1)(a):
42 (i) the contribution provided for in Section 59-10-1305 ;
43 (ii) the contribution provided for in Section 59-10-1306 ;
44 (iii) the sum of the contributions provided for in Subsection 59-10-1307 (1) and Section
45 59-10-1316 ;
46 (iv) the contribution provided for in Section 59-10-1308 ;
47 (v) the contribution provided for in Section 59-10-1310 ; or
48 (vi) the contribution provided for in Section 59-10-1315 .
49 (2) If the commission removes the designation for a contribution under Subsection (1),
50 the commission shall report to the Revenue and Taxation Interim Committee that the
51 commission removed the designation on or before the November interim meeting of the year in
52 which the commission determines to remove the designation.
53 Section 2. Section 59-10-1316 is enacted to read:
54 59-10-1316. Contribution for elementary school.
55 (1) As used in this section, "elementary school" means a public elementary school,
56 including a charter school, that provides instruction to students in grades beginning with
57 kindergarten up to and including grade 6, in whatever kind of school the grade levels exist.
58 (2) Except as provided in Section 59-10-1304 and subject to the other provisions of

59 this section, a resident or nonresident individual that files an individual income tax return under
60 this chapter may designate on the resident or nonresident individual's individual income tax
61 return a contribution to an elementary school in this state.
62 (3) If a resident or nonresident individual designates an amount as a contribution under
63 Subsection (2) but does not designate a particular school to receive the contribution, the
64 contribution shall be made to the Utah State Office of Education.
65 (4) The commission shall:
66 (a) determine annually the total amount of contributions designated to each elementary
67 school in the state and the Utah State Office of Education in accordance with this section; and
68 (b) credit the amounts determined under Subsection (4)(a) to the elementary schools
69 and the Utah State Office of Education.
70 Section 3. Retrospective operation.
71 This bill has retrospective operation for a taxable year beginning on or after January 1,
72 2012.




Legislative Review Note
as of 2-2-12 9:12 AM

Office of Legislative Research and General Counsel