For years, clubs and extracurricular activities have gone on field trips, out of state competitions, and have funded themselves thanks to state tax credit donations. Classes, clubs and sports are just a few of the activities on campus that use tax credits.

However, because of a recent judgement from the state attorney general’s office about how the Chandler Unified School District uses tax credits, students will now be required to pay a fee if their club is using tax credit donations.  

The AG crack down

According to a recent article in the Arizona Republic, an investigation stemming from a Hamilton High School parent’s complaint to the attorney general’s office determined that CUSD misused tax credits. After an investigation, the attorney general’s office determined that nearly $200 thousand were misused, with $71 thousand of the misused funds coming from HHS.

Now CUSD has been ordered to refund $183,968 to 41 of their schools for misused tax credits. The district will pay Perry $7,310 for misused tax credits, much of which came from Advanced Placement exam payments (paying for AP exams with tax credit dollars was deemed a misuse because tax credit cannot pay for college credit).

Revenue-Taxpayer Guidelines state: “Tax credits cannot be issued for tuition-based classes where the student earns credit,” therefore, AP exams, along with any college or summer school course, cannot be covered by tax credit donations.  

New tax credit fees

According to the Chandler Unified School District, the fees have been established to provide “Opportunities equitably to all schools and grade levels.”

Principal Dan Serrano said, “The fee that’s paid goes directly to that specific club…which helps that program.” The fees are paid to contribute more funding to clubs, sports, and general expenses.

According to the CUSD Tax Credit & Extracurricular Activity Handbook, the new fees could vary in price range, depending on the activity. Serrano noted, however, that fees can be paid through the tax credit program as well.

The fees are not limiting; clubs will still have the same opportunity to use tax credits as financial support without fees costing too much.

Every student organization – clubs, sports, etc. – using tax credit donations will be charged the fee. Tax credits can be donated by any Arizona taxpayer of up to $200 as an individual or $400 from a couple. After taxes, the state pays back this money to the taxpayer. Any money donated by Arizona taxpayers can be placed into specific clubs to help their funding. With these donations, students do not pay anything to participate in their activities.

Tax credit donors can choose where the money goes. For example, if a couple donated $400 for the Sports Medicine Club, and Sports Med has a $20 fee; $380 can go towards the club and the other $20 for the fee. If a student has a hardship where they are not able to afford the fee, they would need to contact administration.