Domestic Violence Shelter and Rape Crisis Center Tax Credit

PURPOSE: This rule describes the procedures for the implementation of section 135.550, RSMo, Domestic Violence Shelter and Rape Crisis Center Tax Credit, and to reflect the requirements of House Bill 430 (2021). (1) This rule transfers oversight of the contributions to centers for victims of Domestic Violence Tax Credit Program from the Department of Public Safety to the Department of Social Services. (2) Definition of Terms. (A) “Director” means the director of the Department of Social Services (DSS) or designee. (B) “Facilities” means a qualified domestic violence shelter or rape crisis center, in the context of this rule. (C) “Qualified facility for domestic violence” or “qualified facility,” for the purpose of the Domestic Violence Shelter and Rape Crisis Center Tax Credit, means a shelter for victims of domestic violence located in Missouri that meets the definition stated in section 455.220, RSMo, or a nonprofit organization established and operating exclusively for the purpose of supporting a shelter for victims of domestic violence operated by the state or one (1) of its political subdivisions. (D) “Rape Crisis Center” means a community-based nonprofit rape crisis center, as defined in section 455.003, RSMo, located in Missouri and that provides the twenty-four- (24-) hour core services of hospital advocacy and crisis hotline support to survivors of rape and sexual assault. (3) The director will, at least annually, develop and maintain a list of domestic violence shelters and rape crisis centers which are qualified for the tax credit. (A) Information provided on the list available to taxpayers will be the domestic violence shelter or rape crisis center name and telephone number. (B) A copy of the qualified facilities is posted on the DSS website and will be made available to taxpayers upon request to the address referenced in paragraph (4)(A)1. (4) At least annually, the director will determine which facilities in Missouri may be classified as shelters for victims of domestic violence or rape crisis centers for purposes of the tax credit. In order to be an eligible facility for purposes of the tax credit, a facility must meet the definition as set forth in section 135.550, RSMo. (A) In order for the director to make such determinations, applicants for eligibility must submit the following information: 1. A complete and accurate Domestic Violence Shelter or Rape Crisis Center Tax Credit Application for Agency Eligibility Verification. Applications are available at the Department of Social Services website www.dss.mo.gov or may be obtained by sending a request to— Department of Social Services Attn: Domestic Violence Shelter or Rape Crisis Center Tax Credit Program PO Box 216 Jefferson City, MO 65102-0216; 2. A copy of the articles of incorporation; 3. Verification of Internal Revenue Service (IRS) tax exempt status; 4. A brief program description including the number of individuals served annually and the capacity of the facility; and 5. All information should be submitted to the address referenced in paragraph (4)(A)1. (B) All domestic violence shelters or rape crisis centers must establish their eligibility on at least an annual basis. All facilities must submit the above information no later than June 1, or as requested by the Department of Social Services, to maintain their eligibility for the tax credit. (C) Within forty-five (45) days of receipt of all the required documentation, the director will make a determination of eligibility and will notify the domestic violence shelters or rape crisis centers of the determination in writing. Upon a determination of eligibility, a facility will automatically be added to the facility listing. (D) Qualified facilities must contact the Department of Social Services within thirty (30) days of any changes in business functions that could impact their qualifying status. Within thirty (30) days of notification, the department will review the agency’s eligibility for participation in this tax credit program and notify the agency of the determination in writing. (5) For fiscal years ending on or before June 30, 2022, the director shall equally apportion the total available tax credits among all qualified facilities effective the first day of each state fiscal year (FY). Beginning July 1, 2022, no apportionment is necessary because there is no limit imposed on the cumulative amount of the tax credit. (A) The director shall inform each qualified facility of its share of the apportioned credits no later than thirty (30) days following July 1 of each fiscal year. (B) The director shall no less than quarterly review the cumulative amount of apportioned tax credits being utilized by each qualified facility. Upon request by the director, facilities will provide in writing the amount their facility plans to utilize in tax credits for the fiscal year. Domestic violence shelters or rape crisis centers seeking additional apportionment should submit requests to the director in writing. If a facility fails to use all or a portion of their available tax credits throughout the fiscal year, the director may reapportion these 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 in writing those facilities that would be affected by the reapportioned tax credit. The director will consider comments the domestic violence shelters or rape crisis centers 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. (D) The cumulative amount of credits which may be claimed per any one (1) fiscal year shall not exceed the amount stated in section 135.550, RSMo. (6) A qualified facility shall report the receipt of any contribution it believes qualifies for the tax credit on a form provided by the director. This form is known as the Domestic Violence Shelter or Rape Crisis Center Tax Credit Application for Claiming Tax Credits. (A) Facilities 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. (B) Facilities shall be permitted to decline a contribution from a taxpayer. (C) The tax credit application shall be submitted to the director by the domestic violence shelter or rape crisis center 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 domestic violence shelter or rape crisis center. The type of documentation required will depend on the type of donation. Required documentation includes the following: 1. Cash—legible receipt from the domestic violence shelter or rape crisis center which indicates the name and address of the organization; name, address, and telephone number of the contributor; amount and date the contribution was received; signature of a representative of the domestic violence shelter or rape crisis center 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 domestic violence shelter or rape crisis center including the same information required of a cash donation as described in paragraph (6)(D)1. of this rule; 3. Credit card—legible transaction receipt with the name and address of the domestic violence shelter or rape crisis center; contributor’s name, address, and telephone number; amount and date the contribution was received; signature of a representative of the facility 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 domestic violence shelter or rape crisis center; contributor’s name, address, and telephone number; amount and date the contribution was received; signature of a representative of the facility 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 donated and how the bond amount was determined. Stock value will be determined by calculating the average of the high and low prices for the stock on the date the facility received the stock, multiplied by the number of shares donated; and 6. The value of contributions of real estate shall be 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 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. (E) Contributions that include a benefit to the donor—in addition to the documentation needed in paragraphs (6)(D)1.–6., the domestic violence shelter or rape crisis center 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. (7) Tax credits shall be issued in the order contributions are received. (8) The director will verify with the Director 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 shall be subject to the confidentiality and penalty provisions of section 32.057, RSMo, relating to the disclosure of tax information. (9) Within forty-five (45) days of receipt of the tax credit application, the director will provide written notification of its decision to approve 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 Director of Revenue. AUTHORITY: section 660.017, RSMo 2016, and section 135.550, RSMo Supp. 2021.* This rule originally filed as 13 CSR 4079.010. Emergency rule filed Sept. 18, 2006, effective Oct. 1, 2006, expired March 29, 2007. Original rule filed Sept. 18, 2006, effective March 30, 2007. Moved to 13 CSR 10-3.040 and amended: Filed July 19, 2018, effective March 30, 2019. Amended: Filed Aug. 20, 2021, effective March 30, 2022. *Original authority: 135.550, RSMo 1997, amended 1999, 2006, 2007, 2021, and 660.017, RSMo 1993, amended 1995.