New AZ Law simplifies tax credit
Sedona Community Center asks everyone to consider making a donation prior to December 31 and qualify for state's generous tax credit
The state of Arizona recently changed and simplified the rules covering the popular tax credit program referred to as the "charitable tax credit," according to Marie Brown, president of the board of the Sedona Community Center, one of the qualifying organizations which benefits from the state tax credit program. This tax credit program "credits" the taxes owned to the state up to $200 to $400 depending on one's tax filing status and the amount of the gift to the qualifying organizations.
The Sedona Community Center is located on Harmony Drive in West Sedona and has an annual operating budget of around $500,000, with half provided by grants and funding from the city and other organizations. The balance must be raised to maintain the level of service the center is known for. The center raised in excess of $60,000 in 2008 through tax-credit donations and hopes to substantially increase the amount raised in 2009 now that the new rules duplicate the simplicity of the tax credit program which benefits the Sedona's schools.
"Now you can give to the both the needs of kids and older adults and take advantage of the generosity of the state tax credit program which gives the funds back to the taxpayer when the file their tax return for 2009," Brown said.
"This tax credit program is not in competition with the school tax credit program, but is in addition to the school tax credit program," Brown said. "You can give to both programs and get credit for both gifts on you state income taxes," she said. "In fact, both programs are now on equal footing since the new laws only require the taxpayer itemize deductions on their Arizona State tax return. "That's it."
The tax credit allowed for each gift is $200 for an individual and $400 for couples who file a joint return. According to Brown, this means the credit one gets back from the state is up to $400 for an individual who gives to both the school and charity programs and up to $800 for a couple who gives to both. The tax credit is dollar for dollar and in effect means the state of Arizona is actually paying for the donation since they subtract 100% of the gift from your state taxes owed up to the stated limits. If the taxpayer does not owe enough taxes to get the full benefit of the tax credit, the taxpayer may carry forward the amount of the credit not used for the next five consecutive years.
"Every local taxpayer should find it in their hearts and wallets to make an annual contribution the Sedona Community Center-the cause is worthy and the tax credit makes the donation a simple, almost elementary decision.
The Sedona Community Center prepares more than 15,000 meals for home delivery to shut-ins and others who have a critical need for nutritional assistance to insure a high quality of life. The cost of the meals exceeds $7 but the reimbursement from the state is less then $2, which necessitates the fund raising efforts. The center also prepares and serves another 7,200 meals as part of their congregate lunch program offered at the center.
The new law, 43-1088, removed the need to establish a baseline year to compare the current year's donations with prior years. This simplification bill was co-sponsored and introduced into the Arizona State House of Representatives Lucy Mason (R) and Andrew Tobin (R) who represents the Sedona area. The bill became law this summer. The community center's website has links to the state website for clarification. www.SCCSedona.org/taxcredit
Anyone wanting to take advantage of the new simplified program can make a donation to the Sedona Community Center either by check or online at www.SCCSedona.org and the center will mail back a receipt with instructions on how to file your state return to obtain the rebate from the state.
The center's phone is 928-282-2834 and email is: bleza@sccsedona.org
