13 CSR 10-3.060 - Diaper Bank Tax Credit
PUBLISHER'S NOTE: The secretary of state has determined that the publication of the entire text of the material which is incorporated by reference as a portion of this rule would be unduly cumbersome or expensive. This material as incorporated by reference in this rule shall be maintained by the agency at its headquarters and shall be made available to the public for inspection and copying at no more than the actual cost of reproduction. This note applies only to the reference material. The entire text of the rule is printed here.
(1) A diaper bank may apply for tax credits
on behalf of taxpayers who make contributions to the agency. The amount of tax
credit issued may be equivalent to up to fifty percent (50%) of the
contribution to the agency. Initial credits issued cannot be less than fifty
dollars ($50). The amount of credit claimed by a taxpayer cannot exceed the
amount of the taxpayer's state tax liability for the taxable year the credit is
claimed and cannot exceed fifty thousand dollars ($50,000) per taxable year.
The total amount of tax credits issued under this rule cannot exceed the amount
stated in section 135.621, RSMo. in a fiscal
year.
(2) Definitions of terms.
(A) "Director," means the director of the
Department of Social Services (DSS) or designee.
(B) "Qualified diaper bank," for the purpose
of the Diaper Bank Tax Credit, means a diaper bank that meets the definition
stated in section 135.621,
RSMo.
(3) Beginning July
1, 2019, the director will annually develop and maintain a list of centers
which are qualified for the Diaper Bank Tax Credit. A copy of the diaper bank
listing will be posted annually after July 1, 2019, on the Department of Social
Services website: www.dss.mo.gov.
(4) Annually, the director of the Department
of Social Services will determine which facilities in Missouri may be
classified as diaper banks for purposes of the Diaper Bank Tax Credit. To be a
qualified diaper bank for the purpose of the Diaper Bank Tax Credit, a facility
must meet the definition set forth in section
135.621, RSMo.
(A) In order for the director to make such
determinations, diaper banks seeking qualification should submit the following
information:
1. A complete and accurate
application. The process to be followed is found on the Diaper Bank Tax Credit
Application for Agency Eligibility Verification form which is 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, and is available on the DSS website at
www.dss.mo.gov, or by writing to the
address below. This does not incorporate any subsequent amendments or
additions.
Department of Social Services
Attn: Diaper Bank Tax Credit Program
PO Box 853
Jefferson City, MO 65102-0853;
2. A copy of the articles of
incorporation;
3. Verification of
Internal Revenue Service (IRS) tax exempt status; and
4. A brief program description including the
primary business function as it relates to the mission of helping persons in
need of diapers and hygiene products for infants, children, and incontinent
adults, the number served annually, and a list of the schools, health care
facilities, governmental agencies, or other non-profit entities which received
diapers and hygiene products from the diaper bank in the last calendar
year.
(B) All information
should be submitted to the address referenced in paragraph (4)(A)1. of this
subsection.
(5) All
diaper banks must establish their eligibility for the Diaper Bank Tax Credit
Program on a prospective basis by submitting an application for eligibility
along with the required documentation as stated in subsection (4)(A) of this
rule no later than June 1.
(6) By
August 1, the director will make a determination of qualification and notify
the diaper bank of the determination in writing.
(7) Qualified diaper banks must contact the
Department of Social Services within thirty (30) days of any changes in
business functions that could impact their qualifying status. The department
will review the agency's eligibility for participation in this tax credit
program and notify the agency of the determination in writing.
(8) A qualified diaper bank shall report the
receipt of any contribution it believes qualifies for the tax credit on a form
provided by the Department of Social Services. This form is known as the Diaper
Bank Tax Credit Application for Claiming Tax Credits.
(A) Diaper banks may request the tax credit
application at the Department of Social Services website:
www.dss.mo.gov or by writing to the
address referenced in paragraph (4) (A)1. of this rule.
(B) Diaper banks are permitted to decline a
contribution from a taxpayer.
(C)
The tax credit application shall be submitted to the Department of Social
Services, by the diaper bank, within one (1) calendar year of the receipt of
the contribution. 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.
(D)
Verifying documentation must be attached to the tax credit application when
submitted by the diaper bank. The type of documentation necessary will depend
on the type of donation. Necessary documentation includes the following:
1. Cash-legible receipt from the diaper bank,
which indicates the name and address of the diaper bank; name, address, and
telephone number of the contributor; amount of the cash donation and the date
the contribution was received; and a signature of a representative of the
diaper bank 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 diaper bank including the same information needed for a cash donation
as described in paragraph (8)(D)1.;
3. Credit card-legible transaction receipt
with the name and address of the diaper bank; name, address, and telephone
number of the contributor; amount and date the contribution was received; and a
signature of a representative of the diaper bank 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 diaper bank;
name, address, and telephone number of the contributor; amount of the cash
donation, and the date the contribution was received; and a signature of a
representative of the diaper bank 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 needed when submitting applications for tax credit shall
include the source, date, and number of shares of stock which was donated, and
confirmation documentation of the transfer from the contributor's account to
the diaper bank;
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 necessary in paragraphs (8)(D)1.-6., the diaper bank shall
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.
(9)
The director will verify with the Department of Revenue 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 is subject to the confidentiality and
penalty provisions of section
32.057, RSMo, relating to the
disclosure of tax information.
(10)
Within forty-five (45) days of receipt of the tax credit application, the
director will provide written notification of its decision to approve or deny
the application to the following parties:
(A)
Taxpayer (notification to the taxpayer will include the amount of tax credit
that was approved); and
(B)
Missouri Department of Revenue.
(11) Each eligible diaper bank determination
shall be final after receipt of written notice from the DSS, unless the diaper
bank 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 diaper bank. If a timely protest is filed, the
director shall reconsider the determination the diaper bank has so requested.
The director shall issue a final decision within forty-five (45) days of
protest from the diaper bank.
(12)
The director shall equally apportion the total available tax credits among all
qualified diaper banks, and the apportionment will be effective the first day
of each state fiscal year (FY).
(A) The
director shall inform each qualified diaper bank of its share of the
apportioned credits no later than thirty (30) days following July 1 of each
fiscal year.
(B) The director will,
no less than quarterly, review the cumulative amount of apportioned tax credits
being utilized by each qualified diaper bank. Upon request by the director,
diaper banks will provide in writing the amount their agency plans to utilize
in tax credits for the fiscal year along with supporting documentation. Diaper
banks seeking additional apportionment shall submit requests and supporting
documentation to the director in writing. If a diaper bank fails to use all or
a portion of their available tax credits throughout the fiscal year, the
director may reapportion any unused tax credits to maximize the amount of tax
credits available to taxpayers.
(C)
Within thirty (30) days of any reapportionment, the director shall notify those
diaper banks in writing that would be affected by the reapportioned tax credit.
The director will consider comments the diaper banks submit concerning planned
future uses of the agency's tax credit allocation prior to the end of the
thirty (30) day period. The director's decision regarding reapportionment shall
be final.
Notes
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