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S.B. 285

             1     

EDUCATION CONTRIBUTION ON TAX RETURNS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Daniel W. Thatcher

             5     
House Sponsor: Gregory H. Hughes

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends the Individual Income Tax Contributions Act to provide an individual
             10      income tax contribution for education.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides an individual income tax contribution for the Invest More for Education
             14      Account;
             15          .    creates a restricted account known as the Invest More for Education Account
             16      including:
             17              .    providing funding for the account; and
             18              .    providing that the Legislature may appropriate money from the account for the
             19      support of the public education system;
             20          .    provides that if the collections from the contribution do not meet a certain threshold
             21      amount, the State Tax Commission shall remove the designation for the
             22      contribution from the individual income tax return and may not collect the
             23      contribution; and
             24          .    makes technical and conforming changes.
             25      Money Appropriated in this Bill:
             26          None
             27      Other Special Clauses:


             28          This bill provides an effective date.
             29          This bill provides for retrospective operation.
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          53A-16-101, as last amended by Laws of Utah 2010, Chapter 278
             33          59-10-1304, as last amended by Laws of Utah 2011, Chapter 294
             34      ENACTS:
             35          59-10-1316, Utah Code Annotated 1953
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 53A-16-101 is amended to read:
             39           53A-16-101. Uniform School Fund -- Contents -- Interest and Dividends Account
             40      -- Invest More for Education Account.
             41          (1) The Uniform School Fund, a special revenue fund within the Education Fund,
             42      established by Utah Constitution, Article X, Section 5, consists of:
             43          (a) interest and dividends derived from the investment of money in the permanent State
             44      School Fund established by Utah Constitution, Article X, Section 5;
             45          (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Unclaimed Property
             46      Act; and
             47          (c) all other constitutional or legislative allocations to the fund, including revenues
             48      received by donation.
             49          (2) (a) There is created within the Uniform School Fund a restricted account known as
             50      the Interest and Dividends Account.
             51          (b) The Interest and Dividends Account consists of:
             52          (i) interest and dividends derived from the investment of money in the permanent State
             53      School Fund referred to in Subsection (1)(a); and
             54          (ii) interest on account money.
             55          (3) (a) Upon appropriation by the Legislature, money from the Interest and Dividends
             56      Account shall be used for the School LAND Trust Program as provided in Section
             57      53A-16-101.5 .
             58          (b) The Legislature may appropriate any remaining balance for the support of the


             59      public education system.
             60          (4) (a) There is created within the Uniform School Fund a restricted account known as
             61      the Invest More for Education Account.
             62          (b) The account shall be funded by contributions deposited into the restricted account
             63      in accordance with Section 59-10-1316 .
             64          (c) The account shall earn interest.
             65          (d) Interest earned on the account shall be deposited into the account.
             66          (e) The Legislature may appropriate money from the account for the support of the
             67      public education system.
             68          Section 2. Section 59-10-1304 is amended to read:
             69           59-10-1304. Removal of designation and prohibitions on collection for certain
             70      contributions on income tax return -- Conditions for removal and prohibitions on
             71      collection -- Commission reporting requirements.
             72          (1) (a) If a contribution or combination of contributions described in Subsection (1)(b)
             73      generate less than $30,000 per year for three consecutive years, the commission shall remove
             74      the designation for the contribution from the individual income tax return and may not collect
             75      the contribution from a resident or nonresident individual beginning two taxable years after the
             76      three-year period for which the contribution generates less than $30,000 per year.
             77          (b) The following contributions apply to Subsection (1)(a):
             78          (i) the contribution provided for in Section 59-10-1305 ;
             79          (ii) the contribution provided for in Section 59-10-1306 ;
             80          (iii) the sum of the contributions provided for in Subsection 59-10-1307 (1);
             81          (iv) the contribution provided for in Section 59-10-1308 ;
             82          (v) the contribution provided for in Section 59-10-1310 ; [or]
             83          (vi) the contribution provided for in Section 59-10-1315 [.]; or
             84          (vii) the contribution provided for in Section 59-10-1316 .
             85          (2) If the commission removes the designation for a contribution under Subsection (1),
             86      the commission shall report to the Revenue and Taxation Interim Committee that the
             87      commission removed the designation on or before the November interim meeting of the year in
             88      which the commission determines to remove the designation.
             89          Section 3. Section 59-10-1316 is enacted to read:


             90          59-10-1316. Contribution to Invest More for Education Account.
             91          (1) Except as provided in Section 59-10-1304 , a resident or nonresident individual that
             92      files an individual income tax return under this chapter may designate on the resident or
             93      nonresident individual's individual income tax return a contribution as provided in this section
             94      to be:
             95          (a) deposited into the Invest More for Education Account; and
             96          (b) expended as provided in Subsection 53A-16-101 (4).
             97          (2) The commission shall:
             98          (a) determine the total amount of contributions designated in accordance with this
             99      section for a taxable year; and
             100          (b) credit the amount described in Subsection (2)(a) to the Invest More for Education
             101      Account created in Subsection 53A-16-101 (4).
             102          Section 4. Effective date -- Retrospective operation.
             103          (1) Except as provided in Subsection (2), this bill takes effect on May 8, 2012.
             104          (2) The amendments to Section 59-10-1316 have retrospective operation for a taxable
             105      year beginning on or after January 1, 2012.




Legislative Review Note
    as of 2-27-12 8:19 AM


Office of Legislative Research and General Counsel


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