Bill Text: IN SB0455 | 2011 | Regular Session | Introduced
Bill Title: Income tax refund designation for public K-12 schools.
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2011-01-20 - Senators Arnold, Broden, Hume, Lanane, Mrvan, Randolph, Rogers, Simpson, Skinner, Tallian, Taylor and R. Young added as coauthors [SB0455 Detail]
Download: Indiana-2011-SB0455-Introduced.html
Citations Affected: IC 6-8.1-9-4; IC 20-40-17.
Synopsis: Income tax refund designation for public K-12 schools.
Permits an individual (or husband and wife in the case of a joint return)
to designate a donation of part or all of the taxpayer's state income tax
refund to the Indiana public school K-12 fund of the school corporation
in which the taxpayer resides by using the state income tax return.
Permits a taxpayer to also include a donation to the K-12 fund with the
return. Requires the department of state revenue to include a form for
making direct donations to a school corporation's Indiana public school
K-12 fund. Provides the authority for a public school corporation to
establish an Indiana public school K-12 fund. Prohibits transfers from
or to the fund.
Effective: January 1, 2011 (retroactive); July 1, 2011.
January 12, 2011, read first time and referred to Committee on Tax and Fiscal Policy.
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designates all of the refund to which the individual is entitled to be
paid over to one (1) or more of the funds described in subsection
(d) without designating specific amounts, the refund to which the
individual is entitled shall be paid over to each fund described in
subsection (d) in an amount equal to the amount of the refund
divided by the number of funds described in subsection (d),
rounded to the lowest cent, with any part of the refund remaining
due to the effects of rounding to be deposited in the Indiana public
school K-12 fund of the public school corporation in which the
taxpayer resides.
(b) Every husband and wife (other than nonresidents) who file a
joint income tax return and who are entitled to a refund from the
Indiana department of state revenue because of the overpayment of
income tax for a taxable year may designate on their annual state
income tax return that either a specific amount or all of the refund to
which they are entitled shall be paid over to one (1) or more of the
nongame fund. In the event that the husband and wife designate that a
certain amount shall be paid over to the nongame fund and funds
described in subsection (d). If the refund to which they a husband
and wife are entitled is less than the total amount designated such
designation shall mean that to be paid over to one (1) or more of the
funds described in subsection (d), all of the refund to which they the
husband and wife are entitled shall be paid over to the nongame fund.
designated funds, but in an amount or amounts reduced
proportionately for each designated fund. If a husband and wife
designate all of the refund to which the husband and wife are
entitled to be paid over to one (1) or more of the funds described in
subsection (d) without designating specific amounts, the refund to
which the husband and wife are entitled shall be paid over to each
fund described in subsection (d) in an amount equal to the amount
of the refund divided by the number of funds described in
subsection (d), rounded to the lowest cent, with any part of the
refund remaining due to the effects of rounding to be deposited in
the Indiana public school K-12 fund of the school corporation in
which the taxpayer resides.
(c) In addition to a designation under subsection (a) or (b), a
taxpayer who:
(1) is a resident of Indiana; and
(2) files an individual or joint income tax return;
may designate on the taxpayer's annual state income tax return
that the taxpayer desires to contribute an amount in excess of the
refund amount to the Indiana public school K-12 fund of the public
school corporation in which the taxpayer resides. A taxpayer must
state the amount of the contribution, which may not be less than
one dollar ($1), and include the contribution with the return.
(d) A designation under:
(1) subsection (a) or (b) may be directed only to:
(A) the Indiana public school K-12 fund established under
IC 20-40-17 by the public school corporation in which the
taxpayer resides; or
(B) the nongame fund; or
(2) subsection (c) may be directed only to the Indiana public
school K-12 fund established under IC 20-40-17 by the public
school corporation in which the taxpayer resides.
(c) (e) The instructions for the preparation of individual income tax
returns shall contain a description of the purposes of the following
programs in the following order:
(1) The Indiana public school K-12 fund program. The
department shall also include a form for making a direct
donation to the Indiana public school K-12 fund of the school
corporation in which the taxpayer resides. The description of
this program shall be written in cooperation with the
department of education.
(2) The nongame and endangered species program. which is The
description of this program shall be written in cooperation with
the department of natural resources.
(f) Individual income tax returns must include a statement that:
(1) a contribution under subsection (c) does not reduce the
taxpayer's tax;
(2) a contribution under subsection (c) will:
(A) decrease or eliminate the refund owed to the taxpayer,
if any;
(B) increase the amount that must accompany the return;
or
(C) result in both of the consequences described in clauses
(A) and (B); and
(3) the failure to include with the taxpayer's tax return all or
part of the increased amount referred to under subdivision
(2)(B) will reduce the designated contribution to the extent
that the increased amount is not included with the return.
(g) The department shall interpret a designation on a return
under subsection (a), (b), or (c) that is illegible or otherwise not
reasonably discernible to the department as if the designation had
not been made.
(h) For purposes of IC 4-8.1-1-3, designations made to the
Indiana public school K-12 fund program under this section are
considered made to a dedicated fund. Money from designations
made to the Indiana public school K-12 fund program under this
section shall be held in the dedicated fund for the benefit of and
distribution to designated school corporations and may not be used
or transferred for any other purpose. In May and November each
year, the department shall provide to the general assembly, in an
electronic format under IC 5-14-6, and to the auditor of state a
report indicating the entire amount the department determines has
been designated for each public school corporation in the state
since the department's most recent report. In June and December
each year, the auditor of state shall distribute to each school
corporation the entire amount reported to the auditor of state in
the department's most recent report.
Chapter 17. Indiana Public School K-12 Fund
Sec. 1. As used in this chapter, "fund" refers to an Indiana public school K-12 fund established under section 2 of this chapter.
Sec. 2. (a) The governing body of each school corporation may establish an Indiana public school K-12 fund as a dedicated fund for depositing money received from income tax refunds and donations designated under IC 6-8.1-9-4. Earnings on any balance in the fund shall be deposited in the fund.
(b) Money in the fund may not be considered in determining the amount of state tuition support (IC 20-43) or amount of any state grant that a school corporation is otherwise entitled to receive.
(c) Any balance remaining in the fund at the end of the year remains in the fund.
(d) The fund may be used for the purposes described in section 3 of this chapter.
Sec. 3. The fund may be used by a governing body to provide educational opportunities to children enrolled in the school corporation.
Sec. 4. The governing body of a school corporation may not:
(1) transfer money out of the school corporation's fund to any other fund;
(2) transfer money from the general fund to the school corporation's fund; or
(3) appropriate money from the general fund for the school
corporation's fund.
(b) This SECTION expires January 1, 2013.
