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Tax credit for low-income families to counter pay-to-play policies proposed

KEITH ARNOLD
Special to the Legal News

Published: January 17, 2020

A Canal Winchester lawmaker invoked the name of Ohio sports royalty during sponsor testimony of a plan aimed at making sure poor Ohio families can afford the common pay-to-play policies at most public schools these days.
"I am bringing forth this legislation because I do not believe that a family's income level should be a barrier to the next Jesse Owens, the next LeBron James, the next Archie Griffin, or
Simone Biles," Democratic Rep. Richard Brown told fellow members of the Ohio House of Representatives seated for the Ways and Means Committee. "Our Ohio-born athletes bring pride and publicity to our state, and I believe that House Bill 375 can offer students from families in-need access to activities that can help foster our next generation of athletes and leaders."
The measure would authorize a refundable income tax credit for an extracurricular activity fee paid by or on behalf of a low-income public school student.
A small reprieve, Brown said, for qualifying families - about 61,800, according to estimates by the Ohio Legislative Service Commission with data provided by the Ohio High School Athletic Association.
Families within 175 percent of the Federal Poverty Guidelines would be eligible to claim one activity fee per child per year as a refundable tax credit.
The Federal Poverty Line at the time of the bill's introduction last fall was $25,750, the equivalent of $45,062 for a family of four.
HB 375 would apply to sports of all kinds and include a broad range of extracurricular activities, such as drama groups, band, debate clubs and many others sponsored by the school should they charge a participation fee.
"The idea for this legislation came to me from a constituent who wants her children to be able to participate in sports, but struggles mightily to pay so-called pay-to-participate or pay-to-play fees that have become common in public schools," Brown continued. "I believe that we can all agree, school sports and other extra-curricular activities encourage physical fitness, team building, and many other positive skills and social behaviors for our state's children.
"A monetary fee should not be a roadblock or an impediment to a student's participation in extracurricular activities which foster these positive assets; however, for many working Ohio families, particularly those lower income families with multiple children engaged in or desiring to engage in extracurricular activities, that is the case."
Research showed that about two-thirds of public schools charge activity fees, usually averaging about $250 per sport or activity.
"So, if a family has two children in school, each engaging in two extracurricular activities, this results in total activity fees of about $1,000 per year, an amount that many families find prohibitive," the lawmaker said. "Low-income families are frequently forced to choose not to allow their child or children to engage in one or more extracurricular activities, to the detriment of the children."
That $1,000 amount effectively would be lessened by half after the income tax credit. Parents still would be responsible for any activity fees beyond the first one (per student, per school year) covered by the bill.
"The proposed tax credits would not only break down barriers now affecting an eligible student's involvement in sports or other worthy extracurricular activities, but would further encourage students to be involved," Brow concluded. "The impact that a $500 tax credit, which is a direct reduction of taxable liability, can have on a family with that level of income is astronomic."
Both Iowa and Arizona offer similar tax credits for public school extracurricular activity fees.
A dozen House members have signed on as cosponsors of the bill, which had not been scheduled subsequent hearing at time of publication.
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