SENATE BILL No. 1424

September 18, 2002, Introduced by Senators GARCIA, DUNASKISS, GOSCHKA,

HAMMERSTROM, HOFFMAN, BENNETT, MC COTTER, MC MANUS, SANBORN,

SHUGARS, VAN REGENMORTER, STEIL, NORTH, GOUGEON, SCHUETTE,

BULLARD and BYRUM and referred to the Committee on Finance.

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

(MCL 206.1 to 206.532) by adding section 269.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 269. (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

2 2002, A TAXPAYER WHO IS A TEACHER AT A PUBLIC SCHOOL OR PUBLIC

3 SCHOOL ACADEMY MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY THIS

4 ACT EQUAL TO THE UNREIMBURSED COST PAID IN THE TAX YEAR FOR

5 SCHOOL SUPPLIES USED IN HIS OR HER CLASSROOM, NOT TO EXCEED

6 $200.00 PER YEAR.

7 (2) COSTS USED AS A BASIS FOR A CREDIT OR DEDUCTION CLAIMED

8 BY THE TAXPAYER ON HIS OR HER FEDERAL INCOME TAX RETURN FOR A TAX

9 YEAR SHALL NOT BE USED TO CALCULATE THE CREDIT ALLOWED UNDER THIS

10 SECTION FOR THE SAME TAX YEAR.

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1 (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION

2 EXCEEDS THE TAX LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT

3 PORTION OF THE CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL NOT BE

4 REFUNDED.

5 (4) AS USED IN THIS SECTION:

6 (A) "PUBLIC SCHOOL" MEANS THAT TERM AS DEFINED IN SECTION 5

7 OF THE REVISED SCHOOL CODE, 1976 PA 451, MCL 380.5.

8 (B) "PUBLIC SCHOOL ACADEMY" MEANS A PUBLIC SCHOOL ACADEMY

9 OPERATED UNDER THE REVISED SCHOOL CODE, 1976 PA 451, MCL 380.1 TO

10 380.1852.

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