MILITARY FAMILY RELIEF FUND

Senate Bill 515 (Substitute S-1)

Sponsor:  Sen. Jason E. Allen

House Committee:  Military and Veterans Affairs and Homeland Security

Senate Committee:  Finance

Complete to 5-6-08

A SUMMARY OF SENATE BILL 515 AS PASSED BY THE SENATE 7-26-07

The bill would amend the Income Tax Act to eliminate the sunset on the Military Family Relief Fund income tax check-off.  The check-off currently applies to tax years beginning after December 31, 2003, and before January 1, 2008.  Under the bill, the check-off would continue indefinitely.

In addition, beginning on January 1, 2010, the check-off would be administered in accordance with Section 435 of the act, under which the contribution designation would no longer be printed on the first page of the state individual income tax return and instead would be incorporated into a separate contributions schedule created by the Department of Treasury.  The contribution designation would have to remain on that schedule until it expired or otherwise was no longer available.

MCL 206.438

FISCAL IMPACT:

This bill would continue the Military Family Relief Fund income tax check-off.  In tax year (TY) 2004, $1.2 million was contributed by 53,500 taxpayers and in TY 2005, $550,000 was contributed by 34,500 taxpayers.

                                                                                           Legislative Analyst:   E. Best

                                                                                                  Fiscal Analyst:   Rebecca Ross

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.