LOU GEHRIG'S TAX CHECK-OFF & FUND                                        H.B. 4084 & 4085 (S-1):

                                                                                                      FLOOR SUMMARY

 

 

 

 

 

 

 

 

 

 

 

House Bill 4084 (as discharged)

House Bill 4085 (Substitute S-1 as reported by the Committee of the Whole)

Sponsor:  Representative Jeff Farrington (H.B. 4084)

               Representative Tom Cochran (H.B. 4085)

House Committee:  Tax Policy

Senate Committee:  Government Operations

 

CONTENT

 

House Bill 4084 would enact the "ALS of Michigan ('Lou Gehrig's disease') Fund Act" to do the following:

 

 --    Create the "ALS of Michigan ('Lou Gehrig's disease') Fund" in the Department of Treasury to provide funds for donation to ALS of Michigan to support research to find a cure for ALS (amyotrophic lateral sclerosis), to provide services to patients and their families through a variety of programs, and to support clinics in Michigan that provide a multidisciplinary approach to caring for people with ALS.

 --    Require the State Treasurer to credit to the Fund all amounts appropriated for this purpose under Section 435 of the Income Tax Act.

 --    Provide that money granted or received as a gift or donation to the Fund would be available for distribution upon appropriation to each county from which a contribution, gift, or donation was received.

 --    Require money in the Fund that was available for distribution to be appropriated each year.

 

House Bill 4085 (S-1) would amend Section 435 of the Income Tax Act to add the ALS of Michigan ("Lou Gehrig's disease") Fund to the schedule of tax check-offs (designations of voluntary contributions), beginning with the 2013 tax year.

 

The bill also would add the Michigan Amber Alert Fund to the tax check-off schedule, beginning with the 2013 tax year.  (That Fund is proposed by Senate Bill 341.)

 

In addition, beginning in the 2010 tax year, the bill would add the Military Family Relief Fund to the Section 435 schedule.  (A tax check-off for that Fund is currently required by Section 438.)

 

MCL 206.435 (H.B. 4085)                                             Legislative Analyst:  Suzanne Lowe

 

FISCAL IMPACT

 

The revenue from the proposed income tax check-offs for the ALS of Michigan ("Lou Gehrig's disease") Fund and the Michigan Amber Alert Fund would depend on the size and number of taxpayer donations.  These voluntary contributions would have no impact on State revenue. 

 

The Department of Treasury would incur additional costs of an unknown amount to administer and track the proposed funds.

 

The income tax check-off revenue history in recent years is summarized in the Table 1 below.  Several funds that previously were on the voluntary contributions schedule no longer appear on it.  These are Amanda's Fund for Breast Cancer, Children's Hospital of Michigan Fund, Children's Miracle Network Fund, Foster Care Trust Fund, Michigan Council for the Arts Fund, Michigan Housing and Community Development Fund, Michigan Law Enforcement Memorial Fund, Prostate Cancer Research, and Renewable Fuels Fund.  (Those that did not receive revenue during the three years shown on Table 1 are not listed on the table.)

 

Table 1

Estimated Income Tax Check-Off Donations by Fund

 

Tax Year 2010

Tax Year 2011a)

Tax Year 2012a)

 

Number of

Donations

Total

Donated

Number of

Donations

Total

Donated

Number of

Donations

Total

Donated

Animal Welfare Fund1)

10,852

$148,164

10,800

$125,636

11,049

$123,421

Children's Hospital of MI Fund

7,418

90,853

 

 

 

 

Children's Miracle Network Fund

4,707

56,901

 

 

 

 

Children's Trust Fund1)

7,387

92,631

8,499

88,839

8,126

84,009

Children of Veterans Tuition Grant Program1)

5,928

76,417

5,878

70,374

5,890

64,094

Foster Care Trust Fund

3,467

40,057

 

 

 

 

Girl Scouts of Michigan Fund1)

 

 

3,500

44,163

3,277

38,844

Michigan Military Relief Fund1)

7,443

128,603

9,463

134,757

9,582

131,289

Michigan Council for the Arts Fund

3,356

34,677

 

 

 

 

Renewable Fuels Fund

2,589

23,648

 

 

 

 

Special Olympics Michigan1)

 

 

 

 

5,521

75,976

United Way Fund1)

7,747

389,080

5,574

163,937

5,016

163,169

    Total

 

$1,081,031

 

$627,706

 

$680,802

a) Collections through May 23, 2013.

1)  Check-offs on the 2012 contribution schedule.

       Source:  Department of Treasury

 

Date Completed:  6-5-13                                                    Fiscal Analyst:  Elizabeth Pratt


[Please see the PDF version of this analysis, if available, to view this image.]

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.