Page 27 - The Edge - Fall 2016

EXTRACURRICULAR TAX CREDITS educational or recreational activity supplements the school’s
CONTINUED FROM PAGE 24 educational program, participation is limited to enrolled students,
and participation is optional and not for academic credit,” she
Mackin added: “Whatever you do, document, document, said. “What’s more, ECA monies cannot be spent on senior trips
document.” or events that are recreational, amusement or tourist activities.”
State law de nes extra-curricular activity as an “optional, Undesignated ECA donations are permitted, and the school gets
noncredit, educational or recreational activity that supplements the to say how the money is spent, but only for eligible activities, such
education program of the school, whether o ered before, during or as testing, character education, or extracurricular activities, Pickrell
a er regular school hours.” said.
Furthermore, the law states that school-sponsored activities He cautioned that ECA donations cannot be used for the costs
may require enrolled students to pay a fee in order to participate, of administering the ECA donation program, the costs of a teacher
including fees for band uniforms, equipment or uniforms for or aide and other typical M & O expenses.
varsity athletic activities, scienti c laboratory materials, and in- Pickrell raised the question of student fees since they are no
state or out-of-state trips that are solely for competitive events. longer required for ECA donations. “Student fees are an important
Mackin emphasized that extracurricular activities do not option for several reasons,” he said. “Fees may support a program
include any trips or events that are recreational, amusement or that could not be o ered otherwise. ey are a type of “use tax” that
tourist activities. A donation for a tax credit could be applied to burdens only those who participate. And they create an incentive
the cost of a band trip to a competition, including travel, hotel and for students to complete an activity. I’m not saying schools are
meal expenses, but not for tickets to an amusement park. out of the fee business. Schools do need student fees for certain
What if a French class has a planned trip to France? “ at’s a programs.”
bad decision,” Pickrell said. “You could probably defend it under
the law, but with the liability dangers and potential lawsuits, that’s Tom Pickrell, General Counsel, Mesa Public Schools, can be
not a smart thing to do.” reached at: twpickrell@mpsaz.org or (480) 472-0208.
In a nutshell, Mackin said, an extracurricular activity for
which a school may collect and spend ECA monies must meet Kristin Mackin, Attorney, Sims & Murray, can be reached at:
each of several requirements. “ e school or school-sponsored kmackin@simsmurray.com or (602) 772-5505.

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