Mo. Code Regs. tit. 13 § 10-3.060

Current through Register Vol. 49, No. 17, September 3, 2024

Section 13 CSR 10-3.060 - Diaper Bank Tax Credit

PURPOSE: This rule describes the procedures for the implementation of section 135.621, RSMo, Contributions to Diaper Bank Tax Credit.

(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.

13 CSR 10-3.060

Adopted by Missouri Register July 1, 2019/Volume 44, Number 13, effective 9/3/2019