Group says tax bill will not benefit low-income families

Citing the tax credit too high, members of the Coalition of Private Schools is not keen on supporting a House initiative that seeks to grant tuition tax credit of $3,000 to parents who enroll their children in elementary or secondary private schools of their choice.

Coalition president Scott Norman said that although the organization favors the intent of the legislation, majority of the members believe the credit is too high and will not benefit families who belong to the low-income brackets.

“Parents who can’t even afford to send their kids to private schools will not benefit in any way. Only the higher income families will,” said Mr. Norman.

The coalition has then proposed that a flat rate of $500 as the maximum tax credit to afford more families the educational incentives.

The organization’s hesitation to support the initiative is also based on projections that local economy may not be able to sustain its financial impacts.

“A financial impact study suggests that it can be very scary if proposed amount of funds is coming out of the treasury to the parents because they send their children to a private school. The intent of the bill to give parents varied choices is good but we have to be realistic about the impact in the economy. A bill like this could kill the economy,” he pointed out.

House bill 12-183 or the Education Tuition Tax Credit introduced by Rep. William S. Torres is also designed to provide “qualified” schools incentives on their contributions to the excellence of education in the Commonwealth.

The proposed legislation would allow a taxpayer to take credit for each dependent that it pays elementary or secondary private school including a charter school tuition during a taxable year for which the individual income tax return filed but the total shall not be more than $3,000 in any one taxable year.

A public hearing held last month on the bill drew support from various private schools, citing its advantages to both educational institutions and parents in the Northern Marianas.

Some private school officials recognized the proposed legislation’s merits, noting that it would enable CNMI parents to place their children on a school they think would best provide the students’ educational needs.

Northern Marianas Academy Director Sandy McKenzie said the bill has “potentials” especially with the hard economic times.

The administration of Mount Carmel School also expressed full support for the proposed initiative, citing that it could assist parents explore other educational options for their children outside public school education.

“Given the current state of the economy, many parents are finding it difficult to afford education outside public education. This initiative could go a long way towards further improvement of our education system,” said Galvin Guerrero, MCS director for development.

But Asst. Attorney General Elliot Sattler earlier pinpointed certain inadequacies and insufficiencies within the legislation, advising house leaders to consult with the Division of Revenue and Taxation to evaluate loopholes under the bill, especially pertaining to the credit determination and tax liability.