Section 1-307.67 - Matching funds and return of matching funds; tax exemption

Matching funds and return of matching funds; tax exemption

(a) The administering organization shall deposit into a matching funds account for the account holder matching funds of at least $2 for every dollar that the account holder deposits into the account.

(b) Subject to annual available appropriations, the District of Columbia shall provide to an administering organization matching funds of $2, to be deposited into the matching funds account for the account holder, for every dollar that the account holder deposits into the opportunity account; provided that:

(1) The District of Columbia shall not provide matching funds for the account unless the administering organization provides matching funds in at least the same amount; and

(2) The District of Columbia shall provide no more than $3,000 in the aggregate in matching funds per account.

(c) There shall be no limit on federal or private matching funds made available to an account holder.

(d) Subject to annual available appropriations, matching funds deposited into a matching funds account or withdrawn by an account holder from a matching funds account shall be exempt from taxation under District of Columbia law; provided, that any money withdrawn from a matching funds account by an account holder for an unapproved use shall be taxed as income to the account holder, unless the funds are reinstated in accordance with § 1-307.68(d).

(e) The administering organization shall deposit matching funds in an account separate from the opportunity account. The separate account may be the opportunity account reserve fund account.

(f) Except for matching funds used for an approved purpose under § 1-307.68(a) before 10 years after the establishment of the opportunity account, the matching funds shall be returned to the District of Columbia and administering organization in the same amounts as the matching funds were provided 10 years after the establishment of the opportunity account.

CREDIT(S)

(Apr. 3, 2001, D.C. Law 13-266, § 8, 48 DCR 1240; June 19, 2001, D.C. Law 13-313, § 26(a), (b), 48 DCR 1873; Oct. 26, 2001, D.C. Law 14-42, § 17, 48 DCR 7612; Mar. 3, 2010, D.C. Law 18-111, § 7036, 57 DCR 181.)

HISTORICAL AND STATUTORY NOTES

Effect of Amendments
D.C. Law 14-42 validated a previously made technical correction in subsec. (d).
D.C. Law 13-313, rewrote subsec. (d); and, in subsec. (f), substituted “Except for matching funds used for an approved purpose under § 1-307.68(a) before 10 years after the establishment of the opportunity account,”for “Except for matching funds used to purchase a federally qualified individual retirement account as permitted under § 1-307.68(a)(8)”. Prior to amendment, subsec. (d) read:
“(d) Subject to appropriations, matching funds deposited into a matching funds account or withdrawn by an account holder from a matching funds account shall be exempt from taxation under District of Columbia law; provided, that:
“(1) Interest earned on the matching funds shall not be exempt from taxation; and
“(2) Any money withdrawn from a matching funds account for an unapproved use shall be taxed as income unless it is reinstated in the account as provided in section 9(d).”
D.C. Law 18-111, in subsecs. (b) and (d), substituted “Subject to annual available appropriations” for “Subject to appropriations”.
Emergency Act Amendments
For temporary (90 day) amendment of section, see § 17 of Technical Amendments Emergency Act of 2001 (D.C. Act 14-108, August 3, 2001, 48 DCR 7622).
For temporary (90 day) amendment of section, see § 7036 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).
For temporary (90 day) amendment of section, see § 7036 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).
Legislative History of Laws
Law 14-42, the “ Technical Amendments Act of 2001”, was introduced in Council and assigned Bill No. 14-216, which was referred to the Committee of the Whole. The Bill was adopted on first and second readings on June 5, 2001, and June 26, 2001, respectively. Signed by the Mayor on July 24, 2001, it was assigned Act No. 14-107 and transmitted to both Houses of Congress for its review. D.C. Law 14-42 became effective on October 26, 2001.
For Law 13-266, see notes following § 1-307.61.
Law 13-313, the “Technical Amendment Act of 2000”, was introduced in Council and assigned Bill No. 13-879, which was referred to the Committee on the Whole. The Bill was adopted on first and second readings on December 5, 2000, and December 19, 2000, respectively. Signed by the Mayor on January 19, 2001, it was assigned Act No. 13-574 and transmitted to both Houses of Congress for its review. D.C. Law 13-313 became effective on June 19, 2001.
For Law 18-111, see notes following § 1-301.181.

Current through September 13, 2012