Residential Treatment Agency Tax Credit

PURPOSE: This rule describes the procedures for the implementation of section 135.1150, RSMo, Residential Treatment Agency Tax Credit Act. (1) 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) Definitions. (A) “Director” means the director of the Department of Social Services or designee. (B) “Qualified residential treatment agency,” for the purpose of the Residential Treatment Agency Tax Credit, means a residential care facility that meets the definition stated in section 135.1150, RSMo. (3) 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. Applications may be obtained at the Department of Social Services website: www.dss.mo.gov or 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 (3)(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. Regarding contributions of stocks and bonds, the amount of the contribution is the fair market value of the item as of the date of the donation. 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 is the fair market value of the real estate within three (3) months of 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 that is needed in paragraphs (3) (E)1.–6., the residential treatment agency must 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. (4) 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. (5) Information required in section (3) of this rule, must be submitted to the address referenced in subsection (3)(A). (6) 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. (7) Upon receipt of the information required in subsection (3)(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. The director of the Department of Social Services is subject to the confidentiality and penalty provisions of section 32.057, RSMo, relating to the disclosure of tax information. (8) Upon verification of the information required in section (3) 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. (9) 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. (10) 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 found at the Department of Social Services website: www.dss.mo.gov. Forms may also be obtained by writing to the address provided in subsection (3)(A). AUTHORITY: sections 135.1150 and 660.017, RSMo 2016.* This rule originally filed as 13 CSR 35-100.010. Emergency rule filed Sept. 18, 2006, effective Oct. 1, 2006, expired March 29, 2007. Original rule filed Sept. 18, 2006, effective March 30, 2007. Amended: Filed Feb. 25, 2013, effective Aug. 30, 2013. Moved to 13 CSR 10-3.010 and amended: Filed July 19, 2018, effective March 30, 2019. *Original authority: 135.1150, RSMo 2006, amended 2007, 2012, 2015 and 660.017, RSMo 1993, amended 1995.