UNAPPROVED DRAFT BILL -- Subject to Change Without Notice!
BILL NO.
INTRODUCED BY
(Primary Sponsor)
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING LAWS RELATING TO HIGHER EDUCATION; REVISING THE METHOD OF FUNDING FROM THE STATE GENERAL FUND FOR THE MONTANA UNIVERSITY SYSTEM; PROVIDING FOR PAYMENTS TO UNITS OF THE UNIVERSITY SYSTEM; PROVIDING TAX CREDITS FOR A PERCENTAGE OF TUITION PAYMENTS; AND PROVIDING EFFECTIVE DATES AND A RETROACTIVE APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Per student payments -- fund transfers. (1) At the beginning of each school year, the board of regents shall provide the department of administration with the number of students enrolled in and attending each unit of the university system listed in 20-25-201.
(2) For the fiscal year commencing July 1, 2007, the department of administration shall transfer from the state general fund to each unit of the university system an amount equal to $3,530 times the number of students reported pursuant to subsection (1). The fund transfers under this subsection may not exceed $118,696,301 for the fiscal year ending June 30, 2008. If the amounts calculated in this subsection exceed the amount available for transfer, then the department shall prorate the transfers so that the limit is not exceeded.
(3) For the fiscal year commencing July 1, 2008, the department of administration shall transfer from the state general fund to each unit of the university system an amount equal to $3,642 times the number of students reported pursuant to subsection (1). The fund transfers under this subsection may not exceed $122,331,539 for the fiscal year ending June 30, 2008. If the amounts calculated in this subsection exceed the amount available for transfer, then the department shall prorate the transfers so that the limit is not exceeded.
(4) If a student transfers between units of the Montana university system, the unit that received a payment for that student under subsection (2) or (3) shall transfer the appropriate percentage of the payment to the unit to which the student transfers.
(5) The amounts transferred to each unit pursuant to this section are appropriated to that unit for the operations of the unit.
NEW SECTION. Section 2. Credit for tuition paid for higher education. (1) There is allowed as a credit against the taxes imposed by 15-30-103 an amount equal to 5% of the amount paid for qualified tuition of eligible students for attendance in the Montana university system. The credit allowed by this subsection is a refundable credit even if the taxpayer does not have income tax liability for the tax year in which the credit is claimed.
(2) There is allowed as a credit against the taxes imposed by 15-30-103 an amount equal to 5% of the amount paid for qualified tuition of eligible students for attendance at an accredited institution of higher education in Montana that is not a part of the Montana university system. The credit allowed by this subsection may not exceed the taxpayer's income tax liability for the current tax year.
(3) The credit allowed under this section may be claimed by the student or the person who claims the student as a dependent, but not by both. There is no carryforward or carryback of a credit permitted under this section, and the credit must be applied to the tax year in which the tuition is paid.
NEW SECTION. Section 3. Codification instruction. [Section 2] is intended to be codified as an integral part of Title 15, chapter 30, and the provisions of Title 15, chapter 30, apply to [section 2].
NEW SECTION. Section 4. Severability. If a part of [this act] is invalid, all valid parts that are severable from the invalid part remain in effect. If a part of [this act] is invalid in one or more of its applications, the part remains in effect in all valid applications that are severable from the invalid applications.
NEW SECTION. Section 5. Effective dates. (1) [Sections 2 through 4 and this section] are effective on passage and approval.
(2) [Section 1] is effective July 1, 2007.
NEW SECTION. Section 6. Retroactive applicability. [Section 2] applies retroactively, within the meaning of 1-2-109, to tax years beginning after December 31, 2006.
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