Bill Text: MI SB1076 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: Individual income tax: checkoff; monetary requirements for contribution designations; suspend for 2019 only. Amends sec. 435 of 1967 PA 281 (MCL 206.435).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2020-12-08 - Referred To Committee On Government Operations [SB1076 Detail]
Download: Michigan-2019-SB1076-Engrossed.html
SENATE BILL NO. 1076
September 02, 2020, Introduced by Senator
MACGREGOR and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 435 (MCL 206.435), as amended by 2018 PA 258.
the people of the state of michigan enact:
Sec. 435. (1)
Except as otherwise provided under this section, an individual may designate in
a manner and form as prescribed by the department pursuant to subsection (2) on
his or her annual return that contributions of $5.00, $10.00, or more of his or
her refund be credited to any of the following:
(a) The children's trust fund created in 1982 PA 249, MCL
21.171 to 21.172.
(b) The military family relief fund created in section 3 of
the military family relief fund act, 2004 PA 363, MCL 35.1213.
(c) The animal welfare fund created in section 3 of the
animal welfare fund act, 2007 PA 132, MCL 287.993.
(d) The united way fund created in section 3 of the united
way fund act, 2008 PA 527, MCL 333.26533.
(e)
For the 2016 tax year and each tax year after the 2016 tax year, the Michigan
junior achievement fund created in section 5 of the Michigan junior achievement
fund act, 2016 PA 181, MCL 206.1015.
(e)
(f) For the 2016 tax
year and each tax year after the 2016 tax year, the American Red Cross Michigan
fund created in section 5 of the American Red Cross Michigan fund act, 2016 PA
183, MCL 206.1035.
(f)
(g) For the 2018 tax
year and each tax year after the 2018 tax year, the fostering futures scholarship
trust fund created in section 3 of the fostering futures scholarship trust fund
act, 2008 PA 525, MCL 722.1023.
(g)
(h) For the 2018 tax
year and each tax year after the 2018 tax year, the Lions of Michigan
Foundation fund created in section 5 of the Lions of Michigan Foundation fund
act, 2018 PA 255, MCL 206.1045.
(h)
(i) For the 2018 tax
year and each tax year after the 2018 tax year, the Michigan World War II
Legacy Memorial fund created in section 5 of the Michigan World War II Legacy
Memorial fund act, 2018 PA 257, MCL 206.1085.
(i)
(j) For the 2018 tax
year and each tax year after the 2018 tax year, the Kiwanis fund created in
section 5 of the Kiwanis fund act, 2018 PA 259, MCL 206.1065.
(2) Subject to the limitations provided under this subsection,
the department shall establish and utilize a separate contributions schedule
that incorporates each contribution designation authorized under this section
that remains in effect and available for each tax year and shall revise the
state individual income tax return form to include a separate line for the
total contribution designations made under the separate contributions schedule.
The contribution designations authorized under sections 437, 438, and 440 shall
be incorporated into the contributions schedule for the 2010 tax year and shall
remain on the schedule until the contribution designation expires by law or is
otherwise no longer available as determined by the department pursuant to
subsection (3). A contribution designation that is enacted after November 1,
2007 shall be incorporated as soon as practical on the contributions schedule,
and each new contribution designation shall be listed on the schedule in
alphabetical order. The separate contributions schedule required under this
section shall include not more than 10 separate contribution designations in
any single tax year.
(3) The Except as otherwise provide under this subsection, the department
shall cease to include a contribution designation on the contributions schedule
if that contribution designation fails to raise $50,000.00 in any tax year for
2 consecutive tax years. For the 2020 tax year only,
the department shall consider each contributions designation on the
contributions schedule for the 2019 tax year as raising the sufficient amount
of revenue to remain on the contributions schedule for the 2020 tax year
regardless of the amount raised.
(4) If an individual's refund is not sufficient to make a
contribution under this section, the individual may designate a contribution
amount and that contribution amount shall be added to the individual's tax
liability for the tax year.
(5) Notwithstanding any other allocations or disbursements
required by this act, each year that a contribution designation under this
section is in effect, an amount equal to the cumulative designation made under
this section, less the amount appropriated to the department to implement this
section, shall be appropriated from the general fund and distributed to the
department responsible for administering the appropriate fund to which the
taxpayer designated his or her contribution and shall be used solely for the
purposes of that fund.
(6) Money appropriated pursuant to an appropriations act as
required by law in accordance with this section to the department responsible
for administering each respective fund shall be in addition to any other
allocation or appropriation and is intended to enhance appropriations from the
general fund and not to replace or supplant those appropriations.
(7) Notwithstanding any other provision of law, all of the
following apply:
(a) Money appropriated from the contributions made pursuant
to this section shall be distributed as provided in each respective fund within
1 year and none of the money appropriated pursuant to this section shall be
used for the purpose of administering the fund.
(b) If the fund to which the taxpayer designated his or her
contributions is to be used for donations to multiple organizations located in
this state, the department responsible for administering that fund shall
designate 1 local representative or agency of that organization to administer
and distribute those funds to other similar organizations in this state as
provided in each respective act that created the fund.
(8) When considering whether to grant legislative approval to
amend the state individual income tax return to include additional contribution
designations on the contributions schedule, the legislature shall consider all
of the following:
(a) Whether the organization serves multiple regions
throughout this state.
(b) Whether the organization has demonstrated that it is
capable of raising more than $50,000.00 in this state during the tax year
through means other than the income tax contribution designation.
(c) Whether the organization expends 30% or more of its money
to cover administrative and fund-raising costs.
(d) Whether the organization had previously been included on
the contributions schedule within the last immediately preceding 3 years and
was removed because it failed to raise a sufficient amount of money as
prescribed under subsection (3).
(e) Whether the organization receives any other state funds
or other type of financial assistance from this state.
(f) Whether the organization is associated with a nonprofit charitable organization.
