The FTA counted 11 states with a removal procedure in place in 2003 since then, eight additional states have added minimum contribution requirements or sunset dates to their programs.Ĭolorado has capped the number of checkoffs at15, and employs a minimum contribution requirement and a queue for new programs seeking to make it onto the form. In an effort to curb added administrative costs associated with these programs, state lawmakers are beginning to give them a shelf life or set other restrictions. There is little insight into the reasoning behind adding more checkoff programs, and they generally receive very little opposition from state legislators. In addition, while not a checkoff contribution, Maine residents can purchase state park passes in the checkoff portion of its tax return.Ĭheckoff programs usually are added through legislation, and have grown in a piecemeal manner. The Olympic training center in Lake Placid, N.Y., home to the 1980 Winter Olympics, still holds a place on New York’s checkoff list. California has included a Sea Otter Fund checkoff since 2007. Between 20, Wisconsin’s income tax form included a Green Bay Packer’s Football Stadium checkoff box to help raise funds for a $295 million renovation project. Some checkoff programs are unique to a specific state. The greatest growth occurred in Louisiana, where the number of checkoff boxes grew from four programs in 2003 to 24 in 2015. Since the FTA’s 2003 survey of checkoff programs, states have added an average of five checkoff programs to their personal income tax forms. Nebraska and West Virginia are the only states that offer just one checkoff program (Nongame Wildlife Preservation and Child Abuse Prevention, respectively). Four states each offer more than 20 checkoffs. Oregon offers the most robust list, with 30 programs included on its 2015 tax return. The number and types of checkoff programs each state offers are as varied as the states themselves. In response to the growth, states are developing processes to manage the number of programs that appear on their income tax forms. Twelve states now use a separate form dedicated to checkoffs. A large number of checkoff programs increases tax processing times and costs, as well as the possibility for errors. The growth in popularity of state income tax checkoff contributions has resulted in some administrative challenges. The program was similar to the federal checkoff program, but the contributions were deducted from the resident’s tax refund or increased the payment. Colorado first introduced this idea at the state level to facilitate contributions to nongame and endangered wildlife preservation. It did not increase their payment or decrease their refund, but rather redirected a portion of the government’s spending revenue to public campaign funds. By checking this box, taxpayers could direct $1 of their tax liability to the fund. The 1972 federal income tax form included a checkoff for the Presidential Election Campaign fund. By 2015, that number had nearly doubled to 410 programs. In 2003, the Federation of Tax Administrators (FTA) counted 220 checkoff programs. Since then, the practice has flourished and is now used by the 41 states with a broad-based income tax.
First appearing on the federal income tax form in 1972, the first state checkoff program was introduced in Colorado in 1977. Income tax “checkoff” programs allow all taxpayers to contribute to a prescribed list of charitable organizations on their state income tax form. Arizona’s "I didn’t pay enough” checkoff option for the state’s $1.5 billion budget deficit raised $25,000 last year.Residents in 26 states and the District of Columbia can contribute to checkoff programs even if they are not receiving a tax refund.
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