February 28, 2017, Introduced by Senators MACGREGOR, EMMONS, KNOLLENBERG, HERTEL, GREGORY, O'BRIEN, HORN, MARLEAU, BIEDA and SCHUITMAKER and referred to the Committee on Finance.
A bill to amend 1967 PA 281, entitled
"Income tax act of 1967,"
by amending section 435 (MCL 206.435), as amended by 2016 PA 184.
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
(c) For the 2010 tax year and each tax year after the 2010 tax
year, the military family relief fund created in section 3 of the
military family relief fund act, 2004 PA 363, MCL 35.1213.
(d) The animal welfare fund created in the animal welfare fund
act, 2007 PA 132, MCL 287.991 to 287.997.
(e) For the 2009 tax year and each tax year after the 2009 tax
year, the United Way fund created in section 3 of the United Way
fund act, 2008 PA 527, MCL 333.26533.
(f) For the 2012 tax year and each tax year after the 2012 tax
year, the Special Olympics Michigan fund created in section 5 of
the special Olympics Michigan fund act, 2012 PA 155, MCL 206.945.
(g) For the 2013 tax year and each tax year after the 2013 tax
year, the ALS of Michigan ("Lou Gehrig's disease") fund created in
section 3 of the ALS of Michigan ("Lou Gehrig's disease") fund act,
2013 PA 89, MCL 206.933.
(h) For the 2013 tax year and each tax year after the 2013 tax
year, the Michigan Alzheimer's Association fund created in section
5 of the Michigan Alzheimer's association fund act, 2013 PA 88, MCL
(i) For the 2016 tax year and each tax year after the 2016 tax
year, the Michigan junior achievement fund created in section 5 of
the Michigan junior achievement fund act, 2016 PA 181, MCL
(j) For the 2016 tax year and each tax year after the 2016 tax
year, the American Red Cross Michigan fund created in section 5 of
the American Red Cross Michigan fund act, 2016 PA 183, MCL
(k) For the 2017 tax year and each tax year after the 2017 tax
year, the fostering futures scholarship trust fund created in
section 3 of the fostering futures scholarship trust fund act, 2008
PA 525, MCL 722.1023.
(2) Subject to the limitations provided under this subsection,
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 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 November 1,
2007 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. The separate
contributions schedule required under this section shall include
10 11 separate contribution designations in any
single tax year.
(3) The department shall cease to include a contribution
designation on the contributions schedule if that contribution
designation fails to raise $50,000.00 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.
(7) Notwithstanding any other provision of law, all of the
(a) Money appropriated from the contributions made pursuant to
this section shall be distributed as provided in each respective
fund within 1 year and none of the money appropriated pursuant to
this section shall be used for the purpose of administering the
(b) If the fund to which the taxpayer designated his or her
contributions is to be used for donations to multiple organizations
located in this state, the department responsible for administering
that fund shall designate 1 local representative or agency of that
organization to administer and distribute those funds to other
similar organizations in this state as provided in each respective
act that created the fund.
(8) When considering whether to grant legislative approval to
amend the state individual income tax return to include additional
contribution designations on the contributions schedule, the
legislature shall consider all of the following:
(a) Whether the organization serves multiple regions
throughout this state.
(b) Whether the organization has demonstrated that it is
capable of raising more than $50,000.00 in this state during the
tax year through means other than the income tax contribution
(c) Whether the organization expends 30% or more of its money
to cover administrative and fund-raising costs.
(d) Whether the organization had previously been included on
the contributions schedule within the last immediately preceding 3
years and was removed because it failed to raise a sufficient
amount of money as prescribed under subsection (3).
(e) Whether the organization receives any other state funds or
other type of financial assistance from this state.
(f) Whether the organization is associated with a nonprofit
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 196
of the 99th Legislature is enacted into law.