Tax Return Donation Amendments

17
53G-9-205.3
59-10-1304
59-10-1324
0
Tax Return Donation Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Matt MacPherson
Senate Sponsor: Luz Escamilla
LONG TITLE
General Description:
This bill creates a School Meals Debt Relief Fund and provides for the fund's
administration.
Highlighted Provisions:
This bill:
creates a School Meals Debt Relief Fund;
allows individual taxpayers to designate contributions to the fund on tax returns;
establishes reporting requirements for local education agencies regarding school meals
debt;
provides for a distribution process based on each local education agency's proportion of
total statewide school meals debt;
requires the State Board of Education to collect and verify school meals debt data;
delegates rulemaking authority to the State Board of Education for program
administration; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-10-1304
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2025, Chapters 95, 322
ENACTS:
53G-9-205.3
Effective
05/06/26
, Utah Code Annotated 1953
59-10-1324
Effective
05/06/26
Applies beginning
01/01/26
, Utah Code Annotated
1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
53G-9-205.3
is enacted to read:
53G-9-205.3
Effective
05/06/26
. School meals debt balance relief.
(1)
As used in this section:
(a)
"Fund" means the School Meals Debt Relief Fund created in Section
59-10-1324
.
(b)
"School meals debt" means outstanding unpaid balances for school meals provided
to students.
(2)
The state board shall:
(a)
collect school meals debt data from LEAs annually by June 30;
(b)
require each LEA to report:
(i)
total outstanding school meals debt;
(ii)
number of students with outstanding school meals debt;
(iii)
verification of debt collection efforts; and
(iv)
any other information deemed necessary by the state board;
(c)
verify the accuracy of reported data;
(d)
calculate each LEA's proportion of total statewide school meals debt; and
(e)
maintain school meals debt information.
(3)
Upon receiving funds from the State Tax Commission pursuant to Section
59-10-1324
,
the state board shall:
(a)
distribute funds to each qualifying LEA based on the LEA's proportion of total
statewide school meals debt as calculated under Subsection
(2)
;
(b)
complete all distributions by September 1 of each year; and
(c)
provide a report of distributions to the commission within 30 days of completion.
(4)
(a)
An LEA shall:
(i)
submit required data to the state board by the established deadline;
(ii)
certify the accuracy of submitted data;
(iii)
maintain records supporting submitted data for a period of five years; and
(iv)
use distributed funds solely for the purpose of paying off school meals debt.
(b)
Any funds not applied to school meals debts within 60 days shall be:
(i)
returned to the state board; and
(ii)
redistributed to other qualifying LEAs according to the formula in Subsection
(2)
.
(5)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
state board shall establish rules to administer this section.
Section 2. Section
59-10-1304
is amended to read:
59-10-1304
Effective
05/06/26
Applies beginning
01/01/26
. Removal of
designation and prohibitions on collection for certain contributions on income tax return
-- Conditions for removal and prohibitions on collection -- Commission publication
requirements.
(1)
(a)
If a contribution or combination of contributions described in Subsection
(1)(b)

generate less than $30,000 per year for three consecutive years, the commission shall
remove the designation for the contribution from the individual income tax return and
may not collect the contribution from a resident or nonresident individual beginning
two taxable years after the three-year period for which the contribution generates less
than $30,000 per year.
(b)
The following contributions apply to Subsection
(1)(a)
:
(i)
the contribution provided for in Section
59-10-1306
;
(ii)
the sum of the contributions provided for in Subsection
59-10-1307(1)
;
(iii)
the contribution provided for in Section
59-10-1308
;
(iv)
the contribution provided for in Section
59-10-1319
;
(v)
the contribution provided for in Section
59-10-1320
;
(vi)
the contribution provided for in Section
59-10-1321
;
(vii)
the contribution provided for in Section
59-10-1322
;
or
(viii)
the contribution provided for in Section
59-10-1323
.
; or
(ix)
the contribution provided for in Section
59-10-1324
.
(2)
If the commission removes the designation for a contribution under Subsection
(1)
, the
commission shall report to the Revenue and Taxation Interim Committee by electronic
means that the commission removed the designation on or before the November interim
meeting of the year in which the commission determines to remove the designation.
(3)
(a)
Within a 30-day period after the day on which the commission makes the report
required by Subsection
(2)
, the commission shall publish a list in accordance with
Subsection
(3)(b)
stating each contribution that the commission will remove from the
individual income tax return.
(b)
The list shall:
(i)
be published on:
(A)
the commission's website; and
(B)
the public legal notice website in accordance with Section
45-1-101
;
(ii)
include a statement that the commission:
(A)
is required to remove the contribution from the individual income tax return;
and
(B)
may not collect the contribution;
(iii)
state the taxable year for which the removal described in Subsection
(3)(a)
takes
effect; and
(iv)
remain available for viewing and searching until the commission publishes a new
list in accordance with this Subsection
(3)
.
Section 3. Section
59-10-1324
is enacted to read:
59-10-1324
Effective
05/06/26
Applies beginning
01/01/26
. Contribution to the
School Meals Debt Relief Fund.
(1)
(a)
There is created an expendable special revenue fund known as the "School Meals
Debt Relief Fund."
(b)
The fund shall consist of all amounts deposited into the fund in accordance with
Subsection
(2)
.
(2)
Except as provided in Section
59-10-1304
, a resident or nonresident individual who
files an income tax return under this chapter may designate on the resident or
nonresident individual's income tax return a contribution to be:
(a)
deposited into the School Meals Debt Relief Fund; and
(b)
expended as provided in Subsection
(3)
.
(3)
(a)
Each year, the commission shall:
(i)
disburse from the School Meals Debt Relief Fund all money deposited into the
fund since the last disbursement; and
(ii)
transfer the money to the State Board of Education for distribution to local
education agencies in accordance with Section
53G-9-205.2
.
(b)
The commission shall complete the transfer of funds to the State Board of Education
by August 15 of each year.
Section 4.
Effective Date.
This bill takes effect on
May 6, 2026
.
Section 5.
Retrospective operation.
The following sections have retrospective operation for a taxable year beginning on or
after January 1, 2026:
(1)
Section 59-10-1304; and
(2)
Section 59-10-1324.
2-24-26 4:49 PM