Louisiana House Bill HB708

Louisiana 2020 Regular Session

• Introduced: 3/11/20
• Refer: 3/12/20

Caption

Creates an individual income tax checkoff for four-year state colleges or universities (OR NO IMPACT GF RV See Note)

Impact

The introduction of HB 708 impacts state laws by offering a new avenue for funding higher education via individual taxpayer consent. It allows taxpayers to take an active role in supporting state colleges and universities financially. Given that these donations effectively reduce the taxpayer's refund, the bill modifies individual income tax return procedures while aiming to alleviate some funding pressures faced by public higher education institutions. The expectation is that this will foster increased financial support for colleges and universities which rely on state funding and private donations for operation and development.

Summary

House Bill 708 establishes a mechanism for taxpayers to donate a portion of their state income tax refund to a four-year state college or university. This bill proposes that individuals who are due a tax refund can elect to direct all or part of it to their institution of choice on their tax return. The designated donations are to be managed by the Department of Revenue and distributed quarterly to the respective educational institutions. This change aims to enhance funding for state colleges and universities through voluntary contributions from taxpayers.

Sentiment

The sentiment around HB 708 appears to be largely positive among supporters who view it as a valuable tool for enhancing educational funding without requiring additional taxes. Advocates argue this setup empowers citizens to choose how some of their tax dollars are spent, promoting civic engagement in educational financing. However, there are some concerns among critics about the potential negative implications of such voluntary donations, as it may lead to inconsistent funding across institutions and could favor larger, more popular colleges over smaller ones.

Contention

Notable points of contention regarding HB 708 include concerns about equity and fairness in the distribution of donated funds. Critics worry that the voluntary nature of the tax checkoff may lead to disparities, as not all universities may attract the same level of donations due to their popularity or visibility. Furthermore, discussions on whether this method of funding diverts necessary state resources from public education funding have also surfaced. While supporters champion the bill as a creative financial solution, detractors question whether it might undermine comprehensive state-funded educational programs.