ARIZONA HOUSE OF REPRESENTATIVES

SB 1485: school tuition organization; inflator

PRIME SPONSOR: Senator Mesnard, LD 17

BILL STATUS: Ways and Means

Overview

Incrementally reduces the growth of the cap for corporate contributions to School Tuition Organizations (STO) tax credits.

History

The Department of Revenue (DOR) certifies STO's and maintains a registry that is available to the public. To be eligible for certification an STO must abide by organizational requirements specified in statute including that 90% of its annual revenue be allocated for educational scholarships and tuition grants (Arizona Revised Statutes Title 43 Chapter 15 Article 1).

Current law places a cap on the aggregate total of tax credit contribution made by corporations starting with $10 million in 2006 and increases by 20% every fiscal year. Before accepting a contribution from a corporation an STO must request preapproval from DOR of the intended contribution amount as the credit is first come first served (A.R.S §43-1183).

Provisions

1. Beginning in FY 2020-2021, the aggregate dollar amount of the tax credit cap from the previous FY shall be increased as follows:

a. For FY 2020-2021, 15%;

b. For FY 2021-2022, 10%;

c. For FY 2022-2023, 5%.; and

d. For FY 2023-2024 and each FY after, by the greater of:

i. The percentage of increase in the metropolitan Phoenix consumer price index; or

ii. 2%. (Sec. 1)

2. Makes technical changes. (Sec. 1)

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6. Fifty-fourth Legislature                       SB 1485

7. First Regular Session                            Version 1: Ways and Means

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