SB 347, As Passed Senate

SB-0347, As Passed Senate, April 18, 2007

SUBSTITUTE FOR

SENATE BILL NO. 347

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending sections 437 and 440 (MCL 206.437 and 206.440), section

437 as added by 2005 PA 249 and section 440 as amended by 2005 PA

160, and by adding section 435.

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.

cancer research fund act.

(d) Amanda's fund for breast cancer research created in the

Amanda's fund for breast cancer research act.

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

act.

(f) The Michigan housing and community development fund

created in section 3 of the Michigan housing and community

development fund act, 2004 PA 479, MCL 125.2823.

(2) 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 and 440 shall remain on the first page of the

state individual income tax return for the 2008 and 2009 tax years,

but 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 the effective

date of the amendatory act that added this section 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.

(3) The department may cease to include a contribution

designation on the contributions schedule if that contribution

designation fails to raise $100,000.00 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.

Sec. 437. (1) For the 2006 tax year and each tax year after

the 2006 tax year, an individual may designate on his or her annual

return that a contribution of $2.00 or more of his or her refund be

credited to 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 ~~program~~ act, 2005 PA 248, MCL 390.1341 to

390.1346. Notwithstanding any other provision in this section or

section 475, for the 2010 tax year and each tax year after the 2010

tax year, the contribution designation authorized under this

section shall be offered and administered in accordance with

section 435. 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.

(2) The tax designation authorized in this section shall be

clearly and unambiguously printed on the first page of the state

individual income tax return forms, if practical. Effective January

1, 2010, the contribution designation authorized in this section is

no longer required to be printed on the first page of the state

individual income tax return but shall be incorporated into the

contributions schedule created by the department pursuant to

section 435 and shall remain on the schedule until the contribution

designation expires or is otherwise no longer available.

(3) Notwithstanding any other allocations or disbursements

required by this act, each year that the contribution designation

under this section is in effect, an amount equal to the cumulative

contributions made under this section shall be appropriated from

the general fund to the children of veterans tuition grant program

of the Michigan higher education assistance authority, and the

funds shall be distributed for programs allowed under the children

of veterans tuition grant act, 2005 PA 248, MCL 390.1341 to

390.1346. No money from the contributions made pursuant to this

section shall be used for the purpose of administering this

section.

Sec. 440. (1) Effective for the tax year beginning January 1,

1982 and before January 1, 2005, an individual may designate on his

or her annual return that a contribution of $2.00 or more of his or

her refund and for tax years beginning on and after January 1,

2005, an individual may designate on his or her annual return that

a contribution of $5.00 or more of his or her refund be credited to

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

21.172. Notwithstanding any other provision in this section, for

the tax years beginning on and after January 1, 2010, the

contribution designation authorized under this section shall be

offered and administered in accordance with section 435. If a

taxpayer's refund is not sufficient to make a contribution under

this section, the taxpayer may designate a contribution amount and

that contribution amount shall be added to the taxpayer's tax

liability for the tax year.

(2) The contribution designation authorized in this section

shall be clearly and unambiguously printed on the first page of the

state individual income tax return. Effective January 1, 2010, the

contribution designation authorized under this section is no longer

required to be printed on the first page of the state individual

income tax return but shall be incorporated into the contributions

schedule created by the department pursuant to section 435 and

shall remain on the schedule until the contribution designation

expires or is otherwise no longer available.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

(a) Senate Bill No. 16.

(b) Senate Bill No. 348.