ARIZONA HOUSE OF REPRESENTATIVES

SB 1485: school tuition organization; inflator

PRIME SPONSOR: Senator Mesnard, LD 17

BILL STATUS: Caucus & COW

Ways and Means: DP 8-1-0-1

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%.

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.

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 2: Caucus & COW

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