HOUSE BILL No. 5433


     November 1, 2001, Introduced by Reps. Kooiman, Woronchak, Pestka, Murphy, Voorhees, Drolet, Vander Veen, Toy, Van Woerkom, Kuipers,
Hummel, Vear, DeWeese, Birkholz, Gosselin, Lipsey, Hart, Hansen, Newell, Cameron Brown, Stewart, Meyer, Whitmer, Shackleton, Hager, Bovin,
Phillips, Kolb, Jelinek, Jansen, Gilbert, Schauer, Thomas, Anderson, Bernero, Richardville and Lemmons and referred to the Committee on Tax Policy.


        A bill to amend 1967 PA 281, entitled

   "Income tax act of 1967,"

   (MCL 206.1 to 206.532) by adding section 270.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 270.  (1) FOR TAX YEARS THAT BEGIN AFTER DECEMBER 31,

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      2001, A TAXPAYER MAY CLAIM A CREDIT AGAINST THE TAX IMPOSED BY

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      THIS ACT EQUAL TO 50% OF A QUALIFIED CONTRIBUTION DONATED BY THE

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      TAXPAYER DURING THE TAX YEAR TO A SCHOOL DISTRICT, IF AT LEAST

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      50% OF THE ACTUAL PUPILS IN MEMBERSHIP IN THAT SCHOOL DISTRICT

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      MET THE INCOME ELIGIBILITY CRITERIA FOR FREE BREAKFAST, LUNCH, OR

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      MILK IN THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, AS DETER-

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      MINED UNDER THE RICHARD B. RUSSELL NATIONAL SCHOOL LUNCH ACT,

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      CHAPTER 281, 60 STAT. 230, 42 U.S.C. 1751 TO 1753, 1755 TO 1762a,

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      1765 TO 1766a, 1769, 1769b TO 1769c, AND 1769f TO 1769h, AND

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      REPORTED TO THE DEPARTMENT OF EDUCATION BY OCTOBER 31 OF THE


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      IMMEDIATELY PRECEDING FISCAL YEAR AND ADJUSTED NOT LATER THAN

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      DECEMBER 31 OF THE IMMEDIATELY PRECEDING FISCAL YEAR.

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           (2) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE TAX

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      LIABILITY OF THE TAXPAYER FOR THE TAX YEAR, THAT PORTION OF THE

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      CREDIT THAT EXCEEDS THE TAX LIABILITY SHALL BE REFUNDED.

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           (3) AS USED IN THIS SECTION:

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           (A) "QUALIFIED CONTRIBUTION" MEANS A CASH OR IN-KIND CONTRI-

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      BUTION OR EXPENDITURE USED BY A SCHOOL DISTRICT TO ACQUIRE, FUR-

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      NISH, EQUIP, PURCHASE, IMPROVE, ENLARGE, OPERATE, OR MAINTAIN

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      BUILDINGS, AUTOMOBILE PARKING LOTS OR STRUCTURES, RECREATIONAL

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      FACILITIES, STADIUMS, AND THE NECESSARY SITE OR SITES FOR ANY

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      SUCH BUILDINGS, STRUCTURES, OR FACILITIES TOGETHER WITH THE

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      APPURTENANT PROPERTIES AND FACILITIES NECESSARY OR CONVENIENT FOR

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      THE EFFECTIVE USE OF THE BUILDINGS, STRUCTURES, OR FACILITIES BY

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      THE SCHOOL DISTRICT.

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           (B) "SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT, LOCAL ACT

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      SCHOOL DISTRICT, OR INTERMEDIATE SCHOOL DISTRICT AS THOSE TERMS

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      ARE DEFINED IN THE REVISED SCHOOL CODE, 1976 PA 451, MCL 380.1 TO

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      380.1852, OR A PUBLIC SCHOOL ACADEMY OPERATED UNDER THE REVISED

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      SCHOOL CODE, 1976 PA 451, MCL 380.1 TO 380.1852.

















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