HS/HCS/HB 1392 - This act permits any school district, upon approval by the voters of that district, to impose up to a 15% surcharge on the state personal income tax of the residents of that district. The proposed tax surcharge submitted to the voters of the district shall include: the amount of the surcharge; the time period (not to exceed three years) of the surcharge; and the educational purpose of the surcharge.

At least one year must pass before a vote for another surcharge becomes effective. A period of 10 months must conclude between a failed tax issue and a re-submission to the voters.

A penalty (of no greater than $50) may be imposed on a taxpayer who includes wrong or missing school district information on a tax return during the second and third year in which a school district has imposed a surcharge. No such penalty may be imposed during the first taxable year.

The act establishes the "School District Income Tax Surcharge Trust Fund" and contains technical provisions for both the handling and transfer of funds. The moneys in the fund shall not be considered state funds. The state auditor shall annually audit the fund.

The act allows local school boards the discretion to deposit and transfer said funds among the teachers', incidental, or capital projects funds.

All funds raised by this surcharge shall not be used in calculating a district's state school aid.
DONALD THALHUBER