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REVISED
IMPLEMENTATION OF THE
CORPORATE INCOME TAX TUITION CREDIT
| 1.
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Corporations
contact the School Tuition Organization (STO) to which
they wish to donate. The corporation tells the STO the
amount of the donation they will make. The STO must then
fill out a Pre-Approval form, created by the Arizona Department
of Revenue (ADOR). |
| 2.
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ADOR will accept letters
from STOs requesting pre-approval for a corporate donation
beginning SEPTEMBER 21,
2006. The legislation became law without
an effective date, making 90 days after session’s
end the effective date. No letters from an STO for pre-approval
for a corporation donation will be accepted by ADOR after
June 30, 2011. |
| 3.
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All requests from an STO
for pre-approval shall be for one corporation per request. |
| 4.
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All requests from an STO
for pre-approval shall be by EXPRESS mail that is date
and time stamped as to the time of mailing.** The date
and time on the letter shall dictate the order in which
the requests are considered. No other form of request
for pre-approval, such as e-mail, hand delivery or regular
delivery mail, will be accepted by ADOR. |
| 5.
|
All requests shall be logged
in by the date and time noted by the United States Post
Office on the request at the time of mailing and shall
be applied against the $10
million cap in this order. |
6. |
All requests for pre-approval shall be
sent to:
Georganna Meyer
Chief Economist
Arizona Department of Revenue
P.O. Box 25248
Phoenix, Arizona 85002
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| 7. |
ADOR shall respond to the
request for pre-approval within twenty days of receiving
the request. The request shall be approved if there is
credit available under the $10 million cap. ADOR pre-approval
of an STO request does not constitute ADOR verification
that the contribution meets all of the statutory requirements
for a credit under A.R.S. § 43-1183. |
| 8.
|
ADOR will respond to the
STO, either approving or denying the application, by fax.
Approval or denial will be noted on the pre-approval application,
along with an indication as to when the 10-day period
ends that is allowed for receipt of a check from the corporation.
The STO should notify the donor corporation on the same
day ADOR notifies the STO. |
9.
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In the event a request is
received for an amount that is greater than the remaining
amount under the cap, ADOR shall approve only that amount
that is remaining. For example, if $500,000 is left under
the $10 million cap and a request is received for $750,000,
ADOR shall approve only $500,000. Any requests received
after this point shall be denied. |
| 10.
|
A.R.S. § 43-1183 D.
states that if a taxpayer fails to make the donation to
the STO within ten days after being notified by the STO,
the STO must immediately notify ADOR. If the donation
is not made within the ten day period, the taxpayer is
no longer pre-approved for the donation. Please notify
ADOR by telephone upon receipt of the donation or upon
expiration of the 10-day period with no donation made.
Notification to ADOR of failure to make a donation must
occur no later than the eleventh day after the STO notifies
the taxpayer of pre-approval. (If the eleventh day falls
on a weekend or holiday, the STO should call on the next
business day.) Notification should occur by telephone.
The STO must call Georganna Meyer at 602-716-6927. |
| 11.
|
Although requests after
the cap has been reached will be denied by ADOR, ADOR
will continue to log in requests in the order received.
In the event ADOR is notified by an STO that a corporation
did not make an approved donation, ADOR shall pre-approve
those requests that were previously denied, in the order
received, until the cap is again reached. The cap will
revert to the NEW level
($12 million for FY08, $14.4 million for FY09, $17.28
million for FY10 and $20.736 million for FY11) each
year on July 1 until the credit expires. |
**EXPRESS mail costs $14.40 per letter. I apologize for
the expense,
but it’s the only way I can think of to administer the
“first-come, first-served” cap fairly. |
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