HLS 17RS-691 ORIGINAL
2017 Regular Session
HOUSE BILL NO. 434
BY REPRESENTATIVE SMITH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAX REBATES: Reduces the amount of the rebate for taxpayer donations to school
tuition organizations which provide scholarships for certain students to attend
qualified schools
1 AN ACT
2To amend and reenact R.S. 47:6301(A)(1) and (2)(c); relative to rebates for donations to
3 school tuition organizations: to provide for the amount of the rebate for certain
4 donations; to reduce the amount of the rebate; to provide for applicability; to provide
5 for an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6301(A)(1) and (2)(c) are hereby amended and reenacted to read
8as follows:
9 ยง6301. Rebates; donations to school tuition organizations
10 A.(1) There shall be allowed a rebate for donations a taxpayer makes during
11 a taxable year to a school tuition organization which provides scholarships to
12 qualified students to attend a qualified school. Upon making his donation, the donor
13 shall indicate the duration of time which the school tuition organization may retain
14 and carryforward his donation. The time may be indicated as being in perpetuity or
15 for a stated period of time coinciding with a fiscal year of the state of Louisiana, the
16 minimum of which shall not be less than twelve months or one fiscal year, whichever
17 occurs later. In order to qualify for the rebate, the donation shall be made by a
18 taxpayer who files a Louisiana income tax return. The amount of the rebate shall be
19 equal to seventy percent of the actual amount of the taxpayer's donation used by a
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-691 ORIGINAL
HB NO. 434
1 school tuition organization to fund a scholarship to a qualified student, which shall
2 not include administrative costs.
3 (2) The rebate may be paid only after the conclusion of the school year and
4 only when all of the following requirements have been satisfied:
5 * * *
6 (c) If the qualified student is enrolled in public school on February first of
7 that school year pursuant to the definition of the student membership established by
8 the State Board of Elementary and Secondary Education, the amount of the rebate
9 shall be equal to seventy percent of the actual amount expended by the school tuition
10 organization on scholarships, which shall not include administrative costs and shall
11 be prorated as applicable.
12 * * *
13 Section 2. This Act shall become effective on July 1, 2017 and shall be applicable
14to donations made on or after July 1, 2017 to a school tuition organization which provides
15scholarships to qualified students to attend a qualified school.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 434 Original 2017 Regular Session Smith
Abstract: Reduces the amount of the rebate for taxpayer donations to a school tuition
organization (STO) that provides scholarships to qualified students to attend
qualified schools from the actual amount of the donation used by the STO for a
scholarship to 70% of the donation.
Present law authorizes a rebate for donations a taxpayer makes during a taxable year to a
STO which provides scholarships for tuition and fees to qualified students to attend a
qualified school. Present law prohibits more that 5% of a donation to be used by the STO
for administrative or promotional costs.
Present law requires the donation to be made by a taxpayer who files a La. income tax return
and provides that the amount of the rebate shall be equal to the actual amount of the
taxpayer's donation used by the STO to fund a scholarship to a qualified student, excluding
administrative costs.
Proposed law reduces the amount of the rebate from the actual amount of the taxpayer's
donation used by the STO to fund a scholarship to 70% of the actual amount of the donation.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-691 ORIGINAL
HB NO. 434
Present law authorizes the rebate to be paid after the conclusion of the school year when all
of the following requirements have been satisfied:
(1)The STO certifies to the Dept. of Education (DOE) that the donation has funded a
scholarship for a qualified student.
(2)The DOE verifies that the student was not enrolled in a public school in La. on Oct.
1
st
or Feb. 1
st
of that school year pursuant to the definition of the student membership
established by the State Board of Elementary and Secondary Education (BESE) for
purposes of the Minimum Foundation Program (MFP) formula and DOE certifies the
student count.
(3)If the qualified student is enrolled in public school on Feb. 1
st
of that school year, the
amount of the rebate shall be equal to the actual amount expended by the STO on
scholarships, excluding administrative costs and shall be prorated as applicable.
Proposed law retains present law but reduces the amount of the rebate from the actual
amount expended by the STO on scholarships to 70% of the actual amount expended on
scholarships.
Effective July 1, 2017, and shall be applicable to donations made on or after July 1, 2017 to
a STO which provides scholarships to qualified students to attend qualified schools.
(Amends R.S. 47:6301(A)(1) and (2)(c))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.