Bill Text: MI SB1076 | 2019-2020 | 100th Legislature | Introduced
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-Introduced.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.