SB-0429, As Passed Senate, October 22, 2015

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 429

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1967 PA 281, entitled

 

"Income tax act of 1967,"

 

by amending section 435 (MCL 206.435), as amended by 2013 PA 92.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 435. (1) Except as otherwise provided under this section,

 

for the 2008 tax year and each tax year after the 2008 tax year, 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) For the 2010 tax year and each tax year after the 2010 tax

 

year, the Michigan higher education assistance authority created in

 

section 1 of 1960 PA 77, MCL 390.951, for the children of veterans

 

tuition grant program created in the children of veterans tuition

 

grant act, 2005 PA 248, MCL 390.1341 to 390.1346. No money from the

 

contributions designated to this subdivision shall be used for the

 

purpose of administering this section.

 

     (b) For the 2010 tax year and each tax year after the 2010 tax

 

year, the children's trust fund created in 1982 PA 249, MCL 21.171

 

to 21.172.

 

     (c) For the 2010 tax year and each tax year after the 2010 tax

 

year, the military family relief fund created in section 3 of the

 

military family relief fund act, 2004 PA 363, MCL 35.1213.

 

     (d) The animal welfare fund created in the animal welfare fund

 

act, 2007 PA 132, MCL 287.991 to 287.997.

 

     (e) For the 2009 tax year and each tax year after the 2009 tax

 

year, the united way United Way fund created in section 3 of the

 

united way United Way fund act, 2008 PA 527, MCL 333.26533.

 

     (f) For the 2011 tax year and each tax year after the 2011 tax

 

year, the girl scouts of Michigan fund created in section 3 of the

 

girl scouts of Michigan fund act, 2010 PA 347, MCL 206.923.

 

     (f) (g) For the 2012 tax year and each tax year after the 2012

 

tax year, the special Special Olympics Michigan fund created in

 

section 5 of the special Olympics Michigan fund act, 2012 PA 155,

 

MCL 206.945.

 

     (g) (h) For the 2013 tax year and each tax year after the 2013

 

tax year, the ALS of Michigan ("Lou Gehrig's disease") fund created

 

in section 3 of the ALS of Michigan ("Lou Gehrig's disease") fund

 

act, 2013 PA 89, MCL 206.933.

 

     (h) (i) For the 2013 tax year and each tax year after the 2013

 

tax year, the Michigan Amber alert fund created in section 5 of the

 

Michigan Amber alert act, 2002 PA 712, MCL 28.755.

 

     (i) (j) For the 2013 tax year and each tax year after the 2013

 

tax year, the Michigan Alzheimer's association Association fund

 

created in section 5 of the Michigan Alzheimer's association fund

 

act, 2013 PA 88, MCL 206.965.

 

     (j) 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.

 

     (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 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.

 

     (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.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 428 of the 98th Legislature is enacted into

 

law.