Bill Text: AZ HB2441 | 2017 | Fifty-third Legislature 1st Regular | Introduced
Bill Title: Aggregate STO credit cap; freeze
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2017-02-08 - House read second time [HB2441 Detail]
Download: Arizona-2017-HB2441-Introduced.html
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REFERENCE TITLE: aggregate STO credit cap; freeze |
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State of Arizona House of Representatives Fifty-third Legislature First Regular Session 2017
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HB 2441 |
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Introduced by Representatives Butler: Cardenas, Chávez, Clark, Engel, Fernandez, Friese, Gabaldón, Hernandez, Powers Hannley, Rios, Rubalcava
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AN ACT
Amending title 15, chapter 2, article 2, Arizona Revised Statutes, by adding section 15-249.07; Amending section 43-1183, Arizona Revised Statutes; appropriating monies; relating to corporate school tuition organization tax credits.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 15, chapter 2, article 2, Arizona Revised Statutes, is amended by adding section 15-249.07, to read:
15-249.07. Teacher salary increases fund
A. The teacher salary increases fund is established consisting of legislative appropriations and private gifts, grants and monies from any other lawful source. The department of education shall administer the fund. Monies in the fund are continuously appropriated for the purposes of this section. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. On notice from the department, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the fund are subject to state auditing procedures.
B. Each fiscal year the department shall distribute the monies in the fund among school districts and charter schools in proportion to their average daily membership counts in the preceding fiscal year for the sole purpose of increasing the salaries of the classroom teachers whom they employ.
Sec. 2. Section 43-1183, Arizona Revised Statutes, is amended to read:
43-1183. Credit for contributions to school tuition organization
A. Beginning from and after June 30, 2006, a credit is allowed against the taxes imposed by this title for the amount of voluntary cash contributions made by the taxpayer during the taxable year to a school tuition organization that is certified pursuant to chapter 15 of this title at the time of donation.
B. The amount of the credit is the total amount of the taxpayer's contributions for the taxable year under subsection A of this section and is preapproved by the department of revenue pursuant to subsection D of this section.
C. The department of revenue:
1. Shall not allow tax credits under this section and section 20‑224.06 that exceed in the aggregate a combined total of ten million dollars in any fiscal year. Beginning in fiscal year 2007‑2008 through fiscal year 2016-2017, the aggregate dollar amount of the tax credit cap from the previous fiscal year shall be annually increased by twenty percent. Beginning in fiscal year 2017-2018, the aggregate dollar amount of the tax credit cap shall remain unchanged from the previous fiscal year. In September of each year, the joint legislative budget committee shall:
(a) Estimate the dollar amount of tax revenues deposited in the state general fund in the preceding fiscal year that would have been lost had the aggregate dollar amount of the tax credits been allowed to continue to increase by twenty percent per year under this paragraph.
(b) Report that dollar amount to the chairpersons of the senate and house of representatives appropriations committees for the purpose of appropriating monies to the teacher salary increases fund established by section 15‑249.07.
2. Shall preapprove tax credits under this section and section 20‑224.06 subject to subsection D of this section.
3. Shall allow the tax credits under this section and section 20‑224.06 on a first come, first served first‑come, first‑served basis.
D. For the purposes of subsection C, paragraph 2 of this section, before making a contribution to a school tuition organization, the taxpayer under this title or title 20 must notify the school tuition organization of the total amount of contributions that the taxpayer intends to make to the school tuition organization. Before accepting the contribution, the school tuition organization shall request preapproval from the department of revenue for the taxpayer's intended contribution amount. The department of revenue shall preapprove or deny the requested amount within twenty days after receiving the request from the school tuition organization. If the department of revenue preapproves the request, the school tuition organization shall immediately notify the taxpayer, and the department of insurance in the case of a credit under section 20‑224.06, that the requested amount was preapproved by the department of revenue. In order to receive a tax credit under this subsection, the taxpayer shall make the contribution to the school tuition organization within twenty days after receiving notice from the school tuition organization that the requested amount was preapproved. If the school tuition organization does not receive the preapproved contribution from the taxpayer within the required twenty days, the school tuition organization shall immediately notify the department of revenue, and the department of insurance in the case of a credit under section 20‑224.06, and the department of revenue shall no longer include this preapproved contribution amount when calculating the limit prescribed in subsection C, paragraph 1 of this section.
E. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five consecutive taxable years' income tax liability.
F. Co-owners of a business, including corporate partners in a partnership and stockholders of an S corporation as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.
G. The credit allowed by this section is in lieu of any deduction pursuant to section 170 of the internal revenue code and taken for state tax purposes.
H. A taxpayer shall not claim a credit under this section and also under section 43‑1184 with respect to the same contribution.
I. The tax credit is not allowed if the taxpayer designates the taxpayer's contribution to the school tuition organization for the direct benefit of any specific student.
J. The department of revenue, with the cooperation of the department of insurance, shall adopt rules and publish and prescribe forms and procedures necessary for the administration of this section.
Sec. 3. Appropriations; teacher salary increases fund
The following sums are appropriated from the state general fund in each of the following fiscal years to the teacher salary increases fund established by section 15-249.07, Arizona Revised Statutes, as added by this act:
1. In fiscal year 2017-2018, $12,400,000.
2. In fiscal year 2018-2019, $27,300,000.
3. In fiscal year 2019-2020, $45,100,000.
Sec. 4. Intent regarding credit cost savings
A. It is the intent of the legislature to enact a permanent, dedicated annual source of monies to provide increased compensation for schoolteachers in all school districts and charter schools in this state.
B. It is the intent of the legislature that the annual dollar amount that is paid into the state general fund due to the elimination of automatic annual increases in the aggregate school tuition organization tax credit cap accomplished by this act be appropriated each fiscal year for the purpose of funding increased compensation for schoolteachers in all school districts and charter schools in this state. For the purposes of this section, it is assumed that corporate and insurance taxpayers would have claimed tax credits each fiscal year up to the full amount of the increasing aggregate tax credit cap previously authorized by law.
Sec. 5. Requirements for enactment; two-thirds vote
Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.
