HB-4557, As Passed House, November 8, 2007

SUBSTITUTE FOR

HOUSE BILL NO. 4557

A bill to amend 1967 PA 281, entitled

"Income tax act of 1967,"

by amending sections 435 and 438 (MCL 206.435 and 206.438), section

435 as added by 2007 PA 133 and section 438 as added by 2004 PA

364.

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.

year, the military family relief fund created in section 3 of the

military family relief fund act, 2004 PA 363, MCL 35.1213.

(d) ~~(c)~~ The prostate cancer research fund created in the

prostate cancer research fund act, 2007 PA 135, MCL 333.26241 to

333.26246.

(e) ~~(d)~~ Amanda's fund for breast cancer prevention and

treatment created in the Amanda's fund for breast cancer prevention

and treatment act, 2007 PA 134, MCL 333.26231 to 333.26237.

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

fund act, 2007 PA 132, MCL 287.991 to 287.997.

(g) ~~(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, 438, 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. 438. (1) For tax years that begin after December 31,

2003, ~~and before January 1, 2008,~~ a taxpayer may designate on his

or her annual return that a contribution of $1.00 or more of his or

her refund be credited to the military family relief fund created

in section 3 of the military family relief fund act, 2004 PA 363,

MCL 35.1213. 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.

(2) If a taxpayer's refund is not sufficient to make a

contribution under this section, the taxpayer may designate that

the amount designated be added to the taxpayer's tax liability for

the tax year.

(3) The contribution designation authorized in this section

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

state individual income tax return forms, if practicable. 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.

(4) Notwithstanding the other allocations and disbursements

required by this act, and each year that the contribution

designation is in effect, an amount equal to the cumulative

designations made under this section, less the amount appropriated

to the department of treasury for the purpose of implementing this

section, shall be appropriated from the general fund and

distributed each fiscal year to the department of military and

veterans affairs to be used as follows:

(a) Twenty percent to the post fund and posthumous fund of the

Michigan soldiers' home to be used as provided in 1905 PA 313, MCL

36.61.

(b) Eighty percent to the military family relief fund created

in the military family relief fund act, 2004 PA 363, MCL 35.1211 to

35.1216.

(5) Money appropriated pursuant to this section to the

department of military and veterans affairs shall be in addition to

any allocations and appropriations and is intended to enhance

appropriations from the general fund and not to replace or supplant

those appropriations.