Mo. Code Regs. tit. 13 § 10-3.070

Current through Register Vol. 49, No. 24, December 16, 2024

Section 13 CSR 10-3.070 - Unmet Health, Hunger, and Hygiene Needs of Children In School Tax Credit

PURPOSE: This rule describes procedures for the implementation of section 135.1125, RSMo, to provide a tax credit for funding for unmet health, hunger, and hygiene needs of children in school.

(1) An eligible provider may apply for tax credits on behalf of taxpayers who make donations to the provider as provided herein. Those who donate to qualifying providers are eligible to receive a tax credit up to fifty percent (50%) of their donation. Qualified health, hunger, and hygiene providers that accept these donations are required to remit payments equivalent to the amount of the tax credit to the state of Missouri.

(2) Definitions of terms.

(A) "Director," means the director of the Department of Social Services (DSS) or designee.

(B) "Eligible donation," means a donation that meets the definition stated in section 135.1125, RSMo.

(C) "Eligible provider," means a provider that meets the definition stated in section 135.1125, RSMo.

(D) "Taxpayer," means a person or entity that meets the definition stated in section 135.1125, RSMo.

(3) An application for the Unmet Health, Hunger, and Hygiene Needs of Children In School Tax Credit must be submitted by an eligible provider on behalf of a taxpayer. Acceptable applications for the tax credit require-

(A) A complete and accurate Unmet Health, Hunger, and Hygiene Needs of Children In School Tax Credit Application. Applications which are incorporated by reference and made a part of this rule as published by the Department of Social Services, Division of Finance and Administrative Services, 221 West High Street, Jefferson City, MO 65101, at its website: www.dss.mo.gov/dfas/taxcredit/index.htm, or by writing to the address below. This does not incorporate any subsequent amendments or additions.

Department of Social Services

Attn: Unmet Health, Hunger, and Hygiene Needs of

Children In School Tax Credit

PO Box 853

Jefferson City, MO 65102-0853;

(B) A statement attesting to the receipt of an eligible donation, which includes the following information:

1. Taxpayer type and supporting documentation;

2. Taxpayer's name;

3. Taxpayer's identification number;

4. Amount of the eligible donation and verifying documentation, when applicable;

5. Amount of anticipated tax credit;

6. Date the donation was received by the eligible provider; and

7. The signature of the executive director of the eligible provider;

(C) Payment from the eligible provider in an amount equal to fifty percent (50%) of the eligible donation for which the tax credit is being submitted. For example, if the donation was for one hundred dollars ($100) the payment is fifty dollars ($50). Checks from the eligible provider must be made payable to the Department of Social Services;

(D) Verifying documentation must be attached to the tax credit application. The type of documentation required will depend on the type of donation. Verifying documentation includes the following:

1. Cash-legible receipt from the health, hunger, and hygiene provider which indicates the name and address of the organization; name, address, and telephone number of the contributor; and amount of the cash donation and date the contribution was received; signature of a representative of the health, hunger, and hygiene provider receiving the contribution;

2. Check-photocopy of the canceled check, front and back-if not possible then copy of the original check and a receipt from the health, hunger, and hygiene provider including the same information required of a cash donation as described in paragraph (2)(D)1. of this rule;

3. Credit card-legible transaction receipt with the name and address of the health, hunger, and hygiene provider; contributor's name, address, and telephone number; amount and date the contribution was received; and signature of a representative of the health, hunger, and hygiene provider receiving the contribution. Receipts should have the credit card account number redacted;

4. Money order or cashier's check-legible copy of the original document with the name and address of the health, hunger, and hygiene care provider; contributor's name, address, and telephone number; amount and date the contribution was received; and signature of a representative of the health, hunger, and hygiene provider receiving the contribution;

5. Stocks and bonds-the amount of the contribution is the fair market value of the item as of the date of the donation. Information required when submitting applications for tax credit shall include the source, date, and the number of shares of the stock which was donated;

6. Real estate-the fair market value of the real estate within three (3) months prior to the date of the donation. The fair market value is the lower of at least two (2) qualified independent appraisals for commercial, vacant, or residential property that has been determined to have a value of over fifty thousand dollars ($50,000). Commercial, vacant, or residential property having a value of fifty thousand dollars ($50,000) or less will require only one (1) appraisal. The appraisals will be conducted by two (2) different licensed real estate appraisers; and

7. Contributions that include a benefit to the donor-in addition to the documentation needed in paragraphs (3)(D)1.-6., the eligible provider must provide written documentation of the type of function or event from which the benefit was received, description of the benefit received (if an auction item, identify the item received), gross amount of the contribution, fair market value of the benefit, and how the fair market value of the benefit was determined;

(E) A statement describing how the eligible provider provides funding for unmet health, hunger, and hygiene needs of children in school; and

(F) Verification of the eligible provider's federal tax-exempt status.

(4) All applications and payments must be submitted within twelve (12) months from the date the eligible donation was received from the taxpayer. The date of submission will be determined by the date that the application and payment are postmarked. Tax credit applications submitted more than one (1) year following the date of the contribution will be void, and the right to the tax credit will be forfeited.

(5) Information required in section (3) of this rule must be submitted to the address referenced in subsection (3)(A).

(6) Upon receipt of the information required in subsection (3)(B), the Department of Social Services will verify with the Department of Revenue whether or not the taxpayer has any outstanding balances due from the taxpayer's prior year's state tax liability. If a balance due is outstanding, the amount of tax credit issued under this rule will be reduced by that amount. The director of the Department of Social Services is subject to the confidentiality and penalty provisions of section 32.057, RSMo, relating to the disclosure of tax information.

(7) Upon verification of the information required in section (3) of this rule, the DSS will issue a certificate to the taxpayer indicating the amount of tax credit that is approved for the application.

(A) Certificates will be mailed to the taxpayer at the address provided on the application submitted by the qualified health, hunger, and hygiene provider.

(B) The DSS will not provide information regarding taxpayers' state tax liability to unauthorized individuals.

(C) In the event a taxpayer's tax credit is reduced as a result of delinquent taxes, a refund will not be issued to the health, hunger, and hygiene provider.

(8) Approved tax credit certificates will be issued within forty-five (45) days of receipt of the completed application submitted by the qualified health, hunger, and hygiene provider.

(9) Each eligible unmet health, hunger, and hygiene needs provider determination shall be final after receipt of written notice from the DSS, unless the unmet health, hunger, and hygiene needs provider files a protest with the director setting forth the grounds on which the protest is based, within thirty (30) days from the date of receipt of written notice from the DSS to the unmet health, hunger, and hygiene needs provider. If a timely protest is filed, the director shall reconsider the determination the unmet health, hunger, and hygiene needs provider has so requested. The director shall issue a final decision within forty-five (45) days of protest from the unmet health, hunger, and hygiene needs provider.

(10) The owner of a health, hunger, and hygiene provider tax credit certificate must notify the DSS within thirty (30) days of the date of the transaction to assign, transfer, sell, or convey the credit. Information submitted to effectuate such a transfer must include a complete and accurate DSS Tax Credit Transfer Form. Forms may be obtained by writing to the address provided in subsection (3)(A) of this rule or at the Department of Social Services website: www.dss.mo.gov/dfas/taxcredit/index.htm.

13 CSR 10-3.070

Adopted by Missouri Register July 1, 2019/Volume 44, Number 13, effective 9/3/2019