Current through Register Vol. 49, No. 18, September 16, 2024
PURPOSE: This rule describes the procedures for the
implementation of section
135.1150,
RSMo, Residential Treatment Agency Tax Credit Act.
(1) In general, a qualified residential
treatment agency may apply for tax credits on behalf of taxpayers who make cash
donations to the agency. The amount of total credits available to any qualified
residential treatment agency cannot exceed the total funds received from the
Department of Social Services in the preceding twelve (12) months. Those who
donate to qualifying providers are eligible to receive a tax credit up to fifty
percent (50%) of their donation. Qualified residential treatment agencies that
accept these donations are required to remit payments equivalent to the amount
of the tax credit to the state of Missouri.
(2) Definition of terms-
(A) "Certificate," a tax credit certificate
issued to a taxpayer who makes an eligible donation to a qualified residential
treatment agency as described under section
135.1150,
RSMo;
(B) "Eligible donation,"
donations received from a taxpayer by a qualified residential treatment agency
that are used solely to provide direct care services to children who are
residents of this state. Direct care services include, but are not limited to,
increasing the quality of care and service for children through improved
employee compensation and training. Eligible donations may include cash,
publicly traded stocks and bonds, and real estate;
(C) "Qualified residential treatment agency,"
a residential treatment care facility that-
1. Is licensed under section
210.484,
RSMo; and
2. Is accredited by-
A. Council on Accreditation (COA);
or
B. Joint Commission on
Accreditation of Healthcare Organizations (JCAHO); or
C. Commission on Accreditation of
Rehabilitation Facilities (CARF); and
3. Is under contract with the Department of
Social Services to provide treatment services for children who are residents or
wards of residents of this state; and
4. Receives donations. Any agency that
operates more than one (1) facility or at more than one (1) location can only
be eligible for the tax credit for eligible donations made to facilities or
locations of the agency which are licensed and accredited;
(D) "Taxpayer," any of the following
individuals or entities who make eligible donations to a qualified residential
treatment agency-
1. A person, firm, partner
in a firm, corporation, or a shareholder in an S corporation doing business in
the state of Missouri, and subject to the state income tax imposed in Chapter
143, RSMo;
2. A corporation subject
to the annual corporation franchise tax imposed in Chapter 147, RSMo;
3. An insurance company paying an annual tax
on its gross premium receipts in this state;
4. Any other financial institution paying
taxes to the state of Missouri or any political subdivision of the state under
Chapter 148, RSMo; or
5. Any
charitable organization which is exempt from federal income tax and whose
Missouri unrelated business taxable income, if any, would be subject to the
state income tax imposed under Chapter 143, RSMo; and
(E) "State tax liability," any tax liability
due under Chapters 147, 148, or 143, RSMo, excluding withholding tax imposed by
sections
143.191
to
143.265,
RSMo, as identified in section 135.1142, RSMo.
(3) Beginning January 1, 2007, any taxpayer
will be allowed to claim a credit against their state tax liability, as defined
in subsection (2)(E) of this rule, equivalent to fifty percent (50%) of the
eligible donation the taxpayer made to a qualified residential treatment
agency. The amount of the tax credit claimed may not exceed the amount of the
taxpayer's state income tax liability in the tax year that the credit is being
claimed.
(A) Any tax credit that cannot be
claimed in the taxable year during which the contribution is made, will not be
refunded but allowed to be carried forward and used against the taxpayer's
state tax liability for four (4) subsequent years.
(4) Qualified residential treatment agencies
must apply for the tax credit on behalf of the taxpayers. Required information
includes:
(A) A complete and accurate
Residential Treatment Agency Tax Credit Application (Attachment A, included
herein). Applications may be obtained by writing to-
Department of Social Services Attention: Residential
Treatment
Agency Tax Credit
PO Box 853
Jefferson City, MO 65102-0853;
(B) Verification of accreditation
status;
(C) A statement attesting
to the receipt of an eligible donation, which includes the following
information:
1. Taxpayer type and supporting
documentation, when applicable;
2.
Taxpayer's name;
3. Taxpayer's
identification number;
4. Amount of
the eligible donation and supporting documentation, when applicable;
5. Amount of anticipated tax
credit;
6. Date the donation was
received by the agency; and
7.
Signature of the executive director;
(D) Payment from the qualified residential
treatment agency equal to the value of the tax credit for which the application
is being submitted. Checks must be made payable to the Department of Social
Services; and
(E) Verifying
documentation must be attached to the tax credit application. The type of
documentation required will depend on the type of donation. Required
documentation includes the following:
1.
Cash-legible receipt from the residential treatment agency which indicates the
name and address of the organization; name, address, and telephone number of
the contributor; amount and date the contribution was received; and signature
of a representative of the residential treatment agency 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 residential treatment agency including the same
information required of a cash donation as described in paragraph (4)(E)1. of
this rule;
3. Credit card-legible
transaction receipt with the name and address of the residential treatment
agency; contributor's name, address, and telephone number; amount and date the
contribution was received; and signature of a representative of the residential
treatment agency receiving the contribution. Receipts should have the credit
card account number blacked out;
4.
Money order or cashier's check-legible copy of the original document with the
name and address of the residential treatment agency; contributor's name,
address, and telephone number; amount and date the contribution was received;
and signature of a representative of the residential treatment agency receiving
the contribution;
5. Values of
contributed stocks and bonds must be determined by a reputable source (e.g.,
Wall Street Journal, New York Stock Exchange (NYSE), National
Association of Securities Dealers Automated Quotations (NASDAQ), etc.).
Information required when submitting applications for tax credit shall include
the source and date the stock was valued and how the bond amount was
determined;
6. The value of
contributions of real estate shall be equal to the lowest of at least two (2)
qualified independent appraisals for commercial, vacant, or residential
property that has been determined to have a value of over twenty-five thousand
dollars ($25,000). Commercial, vacant, or residential property having a value
of twenty-five thousand dollars ($25,000) or less will require only one (1)
appraisal; and
7. Contributions
that include a benefit to the donor-documentation required will depend on how
the type of contribution was made (i.e., cash, check, etc.). The same
information is required as described in paragraphs (4)(E)1.-4. of this rule.
Additional information required includes 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.
(5) All applications and payments must be
submitted within twelve (12) months from date the eligible donation was
received from the taxpayer. 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.
(6)
Information required in sections (4) and (5) of this rule, must be submitted
to:
Department of Social Services Attention: Residential
Treatment
Agency Tax Credit
PO Box 853
Jefferson City, MO 65102-0853.
(7) Total tax credits issued for any
qualified residential treatment agency cannot exceed the total payments made by
the Department of Social Services to the qualified residential treatment agency
in the twelve (12) months preceding the month the application for the tax
credit was received. In the event the total credits exceed the total payments
made to a qualified residential treatment agency by the Department of Social
Services, the application and payment will be returned to the qualified
residential treatment agency and may be resubmitted by the agency within thirty
(30) days of the date the application was returned or within twelve (12) months
from the date the donation was received by the agency, whichever is
later.
(8) Upon receipt of the
information required in subsection (4)(C) the Department of Social Services
will verify with the Department of Revenue any outstanding balances due from
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.
(9) Upon verification of
the information required in sections (4) through (8) of this rule, the
Department of Social Services will issue a certificate to the taxpayer
indicating the amount of tax credit that was approved.
(A) Certificates will be mailed to the
taxpayer at the address provided on the application submitted by the qualified
residential treatment agency.
(B)
The Department of Social Services 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
qualified residential treatment agency.
(10) Approved tax credit certificates will be
issued within forty-five (45) days of receipt of the completed application
submitted by the qualified residential treatment agency.
(11) The owner of a residential treatment
agency tax credit certificate may assign, transfer, sell, or otherwise convey
the certificate. The new owner will have the same rights as the original owner.
When a certificate is assigned, transferred, sold, or otherwise conveyed, a
notarized endorsement must be submitted to the Department of Social Services
within thirty (30) days of the date of the transaction. Information submitted
must include:
(A) A complete and accurate Tax
Credit Transfer Form (Attachment B, included herein). Forms may also be
obtained by writing to the address provided in subsection (4)(A) and section
(6) of this rule.
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*Original authority: 135.1150, RSMo 2006, amended 2007,
2012.