43-1181

43-1181. Credit of donation of school
site

A. A credit is allowed against the taxes imposed by this title in the amount of
thirty per cent of the value of real property and improvements donated by the taxpayer to
a school district or a charter school for use as a school or as a site for the
construction of a school.

B. To qualify for the credit:

1. The real property and improvements must be located in this state.

2. The real property and improvements must be conveyed unencumbered and in fee
simple except that:

(a) The conveyance must include as a deed restriction and protective covenant
running with title to the land the requirement that as long as the donee holds title to
the property the property shall only be used as a school or as a site for the
construction of a school, subject to subsection I or J of this section.

(b) In the case of a donation to a charter school, the donor shall record a lien on
the property as provided by subsection J, paragraph 3 of this section.

3. The conveyance shall not violate section 15-341, subsection D or section 15-183,
subsection U.

C. For the purposes of this section, the value of the donated property is the
property's fair market value as determined in an appraisal as defined in section 32-3601
that is conducted by an independent party and that is paid for by the donee.

D. If the property is donated by co-owners, including corporate partners in a
partnership, each donor may claim only the pro rata share of the allowable credit under
this section based on the ownership interest. The total of the credits allowed all
co-owner donors may not exceed the allowable credit.

E. If the allowable tax credit exceeds the taxes otherwise due under this title on
the claimant's income, or if there are no taxes due under this title, the taxpayer may
carry the amount of the claim not used to offset the taxes under this title forward for
not more than five consecutive taxable years' income tax liability.

F. The credit under this section is in lieu of any deduction pursuant to section
170 of the internal revenue code taken for state tax purposes.

G. On written request by the donee, the donor shall disclose in writing to the
donee the amount of the credit allowed pursuant to this section with respect to the
property received by the donee.

H. A school district or charter school may refuse the donation of any property for
purposes of this section.

I. If the donee is a school district:

1. The district shall notify the school facilities board established by section
15-2001 and furnish the board with any information the board requests regarding the
donation. A school district shall not accept a donation pursuant to this section unless
the school facilities board has reviewed the proposed donation and has issued a written
determination that the real property and improvements are suitable as a school site or as
a school. The school facilities board shall issue a determination that the real property
and improvements are not suitable as a school site or as a school if the expenses that
would be necessary to make the property suitable as a school site or as a school exceed
the value of the proposed donation.

2. The district may sell any donated property pursuant to section 15-342, but the
proceeds from the sale shall only be used for capital projects. The school facilities
board shall withhold an amount that corresponds to the amount of the proceeds from any
monies that would otherwise be due the school district from the school facilities board
pursuant to section 15-2041.

J. If the donee is a charter school:

1. The charter school shall:

(a) Immediately notify the sponsor of the charter school by certified mail and
shall furnish the sponsor with any information requested by the sponsor regarding the
donation during the ten year period after the conveyance is recorded.

(b) Notify the sponsor by certified mail, and the sponsor shall notify the state
treasurer, in the event of the charter school's financial failure or if the charter
school:

(i) Fails to establish a charter school on the property within forty-eight months
after the conveyance is recorded.

(ii) Fails to provide instruction to pupils on the property within forty-eight
months after the conveyance is recorded.

(iii) Establishes a charter school on the property but subsequently ceases to
operate the charter school on the property for twenty-four consecutive months or fails to
provide instruction to pupils on the property for twenty-four consecutive months.

2. The charter school, or a successor in interest, shall pay to the state treasurer
the amount of the credit allowed under this section, or if that amount is unknown, the
amount of the allowable credit under this section, if any of the circumstances listed in
paragraph 1, subdivision (b) of this subsection occur. If the amount is not paid within
one year after the treasurer receives notice under paragraph 1, subdivision (b) of this
subsection, a penalty and interest shall be added, determined pursuant to title 42,
chapter 1, article 3.

3. A tax credit under this section constitutes a lien on the property, which the
donor must record along with the title to the property to qualify for the credit. The
amount of the lien is the amount of the allowable credit under this section, adjusted
according to the average change in the GDP price deflator, as defined in section 41-563,
for each calendar year since the donation, but not exceeding twelve and one-half per cent
more than the allowable credit. The lien is subordinate to any liens securing the
financing of the school construction. The lien is extinguished on the earliest of the
following:

(a) Ten years after the lien is recorded. After that date, the charter school, or a
successor in interest, may request the state treasurer to release the lien.

(b) On payment to the state treasurer by the donee charter school, or by a
successor in interest, of the amount of the allowable credit under this section, either
voluntarily or as required by paragraph 2 of this subsection. After the required amount
is paid, the charter school or successor in interest may request the state treasurer to
release the lien.

(d) On enforcement and satisfaction of the lien pursuant to paragraph 4 of this
subsection.

4. The state treasurer shall enforce the lien by foreclosure within one year after
receiving notice of any of the circumstances described in paragraph 1, subdivision (b) of
this subsection.

5. Subject to paragraphs 3 and 4 of this subsection, the charter school may sell
any donated property.